Boutique apartment owners can be excited about anticipated occupancy rates in the state of Texas. The Hoyt Advisory Services report (May 2022, NMHC/NAA) noted that, in order to keep up with demand, Austin would need over 100,000 new units within the next thirteen years. That means Austin occupancy rates – at 93.4% overall – will likely remain high throughout the next decade.
Because of the high demand and high building costs, according to a KVUE news report on August 17, Austin is experiencing an all-time high on rental rates throughout the market. Charles Heimsath, who has been tracking housing data trends since the early 1990s reported that instead of the expected slowdown that usually occurs during the first half of the year, rents for the Austin MSA increased by almost 12%.
A recent Boomtown KVUE report noted that Austin has plenty of new apartment construction throughout the city, with the majority concentrated in the northern areas of the city.
“Communities north of Austin saw 19 new buildings open in 2022, and they have 33 more properties currently under construction.”
Cindi Reed, ApartmentData.com
With so much growth and Austin’s sturdy economy, investors can look forward to strong returns for years to come.
