Central Submarket Regaining Apartment Strength

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Approximately 2,000 apartment units were delivered to Austin’s Central submarket in 2015 and 2016. But, the construction cranes have moved to the suburbs. With a grand total of 92 units anticipated for delivery in downtown Austin – all in Q3 2017 – occupancy is increasing, concession rates are dropping and rents are rising once again, according to RealPage’s Axiometrics.

The Central submarket’s average rent was $2,001 in July 2017, a $55 increase from its recent low point in April 2017. Effective rent growth for the submarket was 3.5%. The entire Austin-Round Rock Metropolitan Statistical Area’s (MSA) effective rent growth was 0.8%, with occupancy at 94.4%.

“The Central submarket needed for construction to stop,” said Jay Denton with Axiometrics. “Now that it has, the high demand generated by job growth that is above the national average will help fill all those recently built units.”

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