I've been so busy trying to assist a couple of investors looking to buy or build some apartment buildings I overlooked this article that came out on April 18 in the Austin Business Journal...Better late than never.

With occupancy more than 90 percent and rents around 90 cents a-square-foot, Austin is the strongest apartment market in Texas, according to a new statewide market report.

At the end of 2006, Austin's overall occupancy stood at 93.7 percent and is expected to reach 95 percent by the end of 2007, according to Apartment Realty Advisors' Texas Multifamily Report. That's compared with occupancy of 89.4 percent in both Dallas and San Antonio and 88.1 percent in Houston.

Rents in Austin rose to 91 cents a-square-foot in 2006, up 7 percent from 85 cents in 2005, driven by increasing demand and a tightening of supply. Meanwhile, rents in San Antonio and Houston stand at about 77 cents and Dallas is holding at 82 cents.

Last year, the Austin market absorbed 1,841 apartment units. Roughly 2,795 units were completed during 2006 and nearly 6,000 units are currently proposed throughout the area. The North and Northwest Austin areas absorbed the most units at 873 apartments followed by South Austin with 474. The most proposed units are also North with 2,879, followed by Central Austin with a total of 1,590 units on the planning table. According to ARA, the Austin market currently has 140,400 apartments.