Research & Forecast Report
Texas per MSA YE 2021: Multifamily Review Opaquely Crystal
After four years of interest rates being firmly fixed at 0%, in 2012, the Fed
Austin ranked #6 best performing large metro in the US (December) and is the
introduced the “Dot Plot” system into their arsenal of policy tools. The dot plot
2nd best performing metro since the beginning of the pandemic.
system allows the Fed’s 18 members to communicate to the market where, they believe, interest rates will be now to several years into the future. As of
Austin emerged as the regional leader in y/y rent growth rising 23.3% to $1,578,
December 15, 2021, 2 of 18 Fed members believed the Fed Funds rate would
a higher growth rate than the National average which increased 14.6% but still
be above 1.00% by YE 2022 with all 18 assuming rates will be above 1.00%,
$62 below the National average rent of $1,640. Dallas Mdiv came in 2nd with
but not higher than 2.50%, by YE 2023. For the Longer-Term outlook, only 2
16.2% y/y increase to $1,429.
of 18 believe interest rates will hit 3.00% by sometime, anytime, after 2024. (Continued)
Occupancy rates increased for most Texas area metros despite robust new unit deliveries. Austin witnessed the highest y/y occupancy increase, rising 3.3% to
Summary
97.1%.
Total Texas Nonagricultural Wage and Salary Employment grew by 50,000 jobs in December. Since the Covid-induced loss of 1,452,600 jobs in April/ May 2020, total nonfarm employment grew by 1,542,200 jobs to its previous employment peak.
Colliers International
1