According to the Austin Business Journal, apartment rents are down in some sections of Austin as the number of apartments reaches the number needed. This trend is particularly pronounced east and southeast of downtown.
In the southeast central submarket, which includes the East Riverside Corridor, occupancy rates were dramatically lower in the last three months of last year. They were also significantly lower in the east central submarket, which is north of Lady Bird Lake and includes the area east of IH-35 between Cesar Chavez Street and Martin Luther King Boulevard, as well as Mueller.
For the Austin area in general, occupancy rates stayed the same. However, the last quarter usually sees the most activity in the apartment market and the number of empty apartments was up for the first time in three years.
The Domain is going against that downward movement with hundreds of high-end apartments coming to market in the the last few years and more in the pipeline. The Domain adds more stores and restaurants constantly, leading to the apartments there seeing a quarter increase in inventory, but still having occupancy and rental rates increase.
However, Austin continues to get national press about its economic success, so it’s possible that these disappointing numbers are a temporary anomaly in Austin’s robust growth story.
The numbers definitely aren’t keeping developers from continuing to build more apartments and the amount of people moving to Austin is forecast to increase for the time being.
Eight new apartment projects with a total of 2,345 apartments broke ground at the end of 2016. 10,000 new units are set to be built over the next decade.
As far as rents, they went down about 1 percent in the last three months across the city. The average is now $1.40 per square foot. The highest rents are downtown in the new luxury apartments, in South Austin, and near UT. Average rent for new apartments downtown is about $2.62 per square foot.
Incentives are the best in new apartment communities in the southeast, southwest, east central, west and south submarkets.
The most sought-after apartment floor plan is the efficiency, (also called studios and micro-units). Rent for these smaller dwellings are up 10 percent to an average of $990 a month.
Ready to take advantage of a slight downturn in the market to nab a sweet deal on an apartment? We have up-to-the-minute knowledge of vacancies and incentives at all of Austin’s best addresses! Give A Plus Apartments a call today at 512-231-1400 and we’ll help you find your dream apartment in no time!