Hey Joe!
I don't know anything about real estate so maybe someone else from Austin can give you more detailed info.
My complex has about a 97% occupancy rate. It is a luxury complex of about 350 units in northwest Austin. There are several new complexes going up out in this area as well as new home developments.
$1250/month is not unreasonable. I moved here in 2004 and looked at 3br/2ba houses for about $950/month. My roommate and I ended up in a 1500sf 3br/2ba apartment for about the same price. We are now paying just under $1200/month.
I sure couldn't get that much apartment for $1200 in L.A. could I?
Good luck!
~MS