September 22, 2016
Average Austin, TX multifamily rents increased in August for the eighth straight month. However, annual effective rent growth continued its downward trend, according to Dallas-based Axiometrics. Though job growth continues high – at 3.9% in July – supply delivered to downtown Austin is creating the downward pressure on rents.
“Negative rent growth in the Central submarket is bringing down Austin’s overall rate,” said Stephanie McCleskey, vice president of research for Axiometrics. “Job growth is still booming, but the amount of new supply coming to market is a little too much for the demand, specifically in concentrated areas.”
Meanwhile, Axiometrics has identified 9,740 units to be delivered this year, and an additional 6,862 units in 2017. A shortage of construction labor is forcing several new properties scheduled for completion this year into next year’s column.
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