Austin’s Demand Meets Completions
- Jan 09, 2019
By Anca Gagiuc
Technology companies from major U.S. hubs are attracted to Austin’s lower cost of living and doing business, as well as its strong pool of highly skilled professionals. Rent growth, which had flattened around mid-year, has picked up steam again, up 3.4 percent year-over-year through October, to an average of $1,347. Despite substantial new deliveries, demand remains strong, boosting the occupancy rate by 70 basis points year-over-year.
Employment growth has been consistent, floating above the 3.0 percent mark all year long and clocking in at 3.4 percent year-over-year through September, well above the 2.0 percent national rate. Austin added 40,000 jobs in the year ending in September, with all but two sectors expanding. Tech jobs abound, as 12 of the 25 biggest employers in Austin operate in the technology sector. The metro’s problematic infrastructure is up for improvement, as a $160 million bond has passed—the measure is not only meant to rebuild streets, sidewalks and the bridge over Lady Bird Lake but will also build on the expansion of the transportation sector, which added 10,100 jobs in 2018.
Nearly 9,000 units were delivered through October, with about three-quarters of them upscale. The pipeline consists of some 19,900 units underway, as further stock expansion is looming. Some $886 million in multifamily assets traded by October, with the per-unit price at $137,111.