According to the Austin Business Journal, “apartment occupancy rates jumped notably in 2010, prompting decreased supply and higher prices, according to a recent report.”
As demand continues to outstrip supply this year, the City is predicted to become the country’s second best industry performer — in terms of rent growth — after San Jose, California.
According to the study by MPF Research, Austin “occupancy is expected to rise another 2.2 percentage points this year with a concurrent 6.8 percent increase in rental rates. Only San Jose, with 10.2 percent revenue growth, is expected to outperform Austin’s net 9 percent revenue increase this year.”
Currently, the average Austin rent is $854, up 2.4 percentage points from last year. Rents are significantly higher downtown where typical units are priced from $1.50 to $2.00 per square foot.