Austin Sees Surge in Out-of-State Investor Interest via MHNonline

The Live Music Capital of the World is expecting a population growth exceeding 50,000 people. This will undoubtedly increase the demand for apartments, pushing rents and occupancies.

As of the third quarter of 2011, employers added 15,500 jobs, increasing the workforce by 2 percent. Austin’s unemployment rate was 7.1 percent as of October, down 40 bps from the month prior.

Class A rents are slightly higher than the monthly mortgage payment on a median-priced home in the suburbs, notes Marcus & Millichap. Asking and effective rents increased 2.7 percent and 3 percent, respectively, year-over-year to the third quarter. Class B and C asking rents increased slightly more than those of Class A—2.7 percent versus 2.4 percent. Marcus & Millichap expects that asking and effective rents will end the year 3.1 percent and 3.6 percent, respectively, higher than the year prior.

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