Austin ranks among top markets for apartment investors
Apartments in Austin are expected to be a hot commodity for real estate investors over the next two years as rental and occupancy rates rise.

The Austin-Round metropolitan statistical area is projected to have the 9th best market over the next 24 months for apartment investing.

“We predict improved occupancies, an increase in investment capital and a sharp rise in investor return,” the center’s director, Eugene Vollucci says. “Apartments are popular with small investors and the mortgage markets are supporting more transactions by individuals and small investment groups.”

The top market for apartment investing is Charlotte, N.C., followed by Denver; Raleigh-Durham, N.C.; Tampa, Fla.; and Houston. In Charlotte, rental rates are expected to increase 3.5 percent over the two-year period.

Austin’s apartment rates are projected to expand at a 2.1 percent rate, making it the ninth-best market.

The study projects the greatest gains in apartment investing will be in areas where high-quality apartments are targeted by empty nesters and aging baby-boomers.

“There will be good opportunities,” Vollucci says. “A strong tenant demand will accelerate rent increases and new construction will still be modest by historic standards. Vacancies will be below 8 percent in most markets.”