DFW, San Antonio, and Houston are among 14 cities that will overcome multifamily oversupply issues and thrive between now and into 2017. Even Austin will exceed all the product that'll be built in the next three years, says JLL multifamily guru Jeff Price. (Young people looking to rent is one of the few renewable resources on Earth.)
All of the major Texas markets will be healthy, says managing director for the Texas multifamily group Jeff Price. However, Austin will suffer some stress from the level of new construction, but that’s only in the short term—while the percentage of inventory is higher than other markets, Austin has a way of snapping back.
With almost 96% occupancy, Austin's demand may leak just a little bit as more product comes online, but Jeff doesn’t think it will be as stressful as people might fear. Demand drivers are just as good there as they are for DFW and Houston; even though revenue and rent growth may be a little limited, job growth is still there. Jeff also says stats show about 100 people a day are moving to Austin, so units will be absorbed. (It's straining the housewarming gift supply... you can't find a toaster anywhere.)
Jeff forecasts that Austin and Dallas job growth will level a bit, but so will the multifamily construction starts. (Austin still had a great Q4, despite the concern about supply and construction levels.) And Houston’s construction pipeline will still see some growth this year, he says. On Jeff’s horizon: a new grandbaby, and his youngest kid is getting married in June.
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