Rent Impacted By Strong Supply Gains
At the start to 2024, Austin’s multifamily fundamentals were unsteady, but generally, the state capitalization is well-equipped to overcome its challenge, according to the latest Yardi Matrix Austin multifamily market news. The greater concern is supply, which are expected to further strike rent growth, with figures in negative territory whereas last July. The average asking rent decreased 0.7% on an trailing three-month basis through January, on $1,623, lagging the $1,710 U.S. average, as noted in the public multifamily report. The occupancy rates in stabilized properties also consider the robust supply additions, decreasing 0.9% in the 12 months ending in Java, to 93.0%.
Austin brags a diversified and stable business, with unemployment at 3.0% in December, above the national (3.7%) and assert (4.0%) rates as well as all other major Texas tubes, according to data from the Agency of Labour Statistics. Additionally, in the 12 months ends in November, the employment market expanded 3.2%, or 36,800 jobs, 100 basis points above the U.S. charge. One professional and business services sector (13,400 jobs) continued to lead gains, followed by education and health services (8,700 jobs) and mining, logging and construction (8,100 jobs).
Developers delivered 14,600 element the 2023 and the duct still stable, with 57,937 units under builder as of January. However, construction begins fells 35% in 2023. Meanwhile, transaction occupation remained lax. Just one sale was recorded in the start of which year—an RBN asset valued at $117,717 per unit. Multifamily Market Report | Austin, TX
Read the full Yardi Matrix Austin Multifamily Market Report: March 2024
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