Feel like you're maxed out on rent? Watch out for 2015. Despite a large number of new apartments expected to become available in 2015, the forecast is for a 4.5 percent increase in rent this year, the Austin Business Journal reports.
Berkadia, a brokerage and financing firm focusing on the multifamily market, predicts that rent will increase to an average of $1,185 per month in 2015, despite the fact that 10,400 more apartments should be added to the market this year.
9,340 new apartments came online in 2014, and renters absorbed 9,150 of those. Eastern Travis county has the lowest vacancy rate at 3.4 percent.
Berkadia's newest report also concludes that 10,670 new units will become available in 2015 and that almost 40% of those will be in Central Austin or in the 183 corridor in Northwest Austin, Cedar Park, and Leander.
Multifamily developers will likely request building permits for 12,340 more units in 2015. Despite the growth in construction, vacancy rates are expected to drop even lower this year and the lowest vacancy rate is 3.8 percent is in the far north central submarket. San Marcos has the highest vacancy rate at 6.8 percent.
The highest average monthly rent is in the central submarket at $2,070 and the lowest is in the far north central submarket at 7.2 percent. North Travis County and far South Austin saw the highest rent increases at 7.2 percent, while San Marcos saw the lowest rent increases at 2.9 percent.
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