News: September 14, 2007


The Apartment Market
Upward with a bullet


By Wells Dunbar
graph_Austin Apt rental rates

In its "Austin Multi-Family Trend Report," the research firm Austin Investor Interests tracks the ups and downs of Austin's apartment and condo markets. As of late, it's mainly ups. Their second-quarter report for 2007 describes the continued rise in Austin's rental prices, with the average monthly rent rising $14 over the last quarter alone. They also note the apartment-flipping squeeze on renters – condo conversions, combined with expensive refurbishments, have taken 3,000 apartments off the market. Half of those vanished units are in "prime" Central and Southeast Austin locations, which, while formerly demanding slightly higher-than-average rates of 96 cents per square foot, "are set for redevelopment into high-end rentals projected to bring in $1.30-1.55/square foot." Ouch.
• Average occupancy: 92.72%
• Average rent: $780
• Average square feet: 834
• Average cost per square foot: 94 cents

Original Austin Chronicle article may be viewed at
http://www.austinchronicle.com/gyrobase/Issue/
story?oid=oid%3A538030
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