Real
Estate Center Online News
January
31, 2012
AUSTIN (Marcus & Millichap) – Expect widespread
job growth in Austin to bring apartment vacancy to its lowest level in more than
a decade, says Marcus & Millichap in its 2012 multifamily market
forecast.
According
to the report, "The professional and business services sector will be the
primary generator of top-tier apartment demand as relocating and growing firms
add to payrolls. Several major tech companies have already announced expansion
plans, offsetting losses in the public sector."
Among
those is Rackspace, which Marcus & Millichap said plans to triple its local
workforce over the next few years, supporting Class-A operations.
Meanwhile,
"Class B- and -C apartments will benefit from job growth in the typically
lower-paying leisure and hospitality and trade, transportation and utilities
sectors, which will add 6,000 jobs. As operations improve, developers will begin
moving projects through the planning stages to capture elevated demand."
Among
the firm's other projections for the year:
- Local employment will
expand by 3.8 percent, an increase of 30,000 positions. Last year, job growth
reached 3 percent, or 23,000 jobs.
- Apartment construction
will pick up, as 3,000 units are slated for delivery. In addition, approximately
21,000 units are in some stage of the planning pipeline.
- Apartment vacancy will
drop 70 basis points in 2012 to 4.3 percent, slowing down from the
200-basis-point plunge reported last year.
- Average asking rents
will rise 4.1 percent to $927 per month while effective rents gain 6.2 percent
to reach $868 per month.
- As operations
strengthen, buyers will begin their search for Class-B assets near the
University of Texas and major employers in Northwest and Southwest
Austin.
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About Albert Elhage
I have called Austin HOME for more than 20 years. Living and raising a family in this city is a joy for both my wife and me. Whether you seek an urban, hill country, or lake setting, Austin appeals to a variety of homeowners. For newcomers to the area or those who already call Austin their home and want to make a change, I am happy to show you around and help you decide which neighborhoods best fit your needs. Being a University of Texas at Austin and Texas State University graduate, with a background in geography and environmental planning, I have a genuine appreciation of Austin’s diverse landscape and having lived in different areas of Austin, I am familiar with the unique venues the capital city has to offer.
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