JOB GROWTH SUSTAINING AUSTIN MULTIFAMILY MARKET AUSTIN (Marcus & Millichap) – In its fourth quarter 2011 multifamily market report, Marcus & Millichap said Austin’s "expanding economy and highly educated workforce is propelling job seekers and employers to pursue opportunities in the metro, helping improve apartment operations."
Here are highlights from the firm's apartment market forecast for the remainder of the year:
Led by a recovering private sector, 30,000 jobs will be added in the metro this year, a 3 percent increase and the first annual job growth since 2007.
Last year, 7,200 positions were cut in the metro.
After adding 2,600 units to the metro in 2010, developers will slow completions to 320 units this year. In 2012, construction will increase to more than 2,600 units as builders attempt to capture demand.
Healthy demand growth will be unregulated by supply additions this year, supporting a vacancy improvement of 200 basis points to 5 percent. In 2010, vacancy recorded a 310-basis-point decline.
Asking rents will climb 3.1 percent to $885 per month in 2011, while effective rents increase 3.6 percent to $805 per month. Last year, asking rents inched up 1.7 percent and effective rents pushed up 2.6 percent.