Austin Rent Increases = 6th Largest in US

Austin Rent Among Fastest Growing in Nation

 

A new study confirms that Austin apartment rent prices are among the fastest growing in the U.S. According to MPF Research, average rent for Austin apartments increased by 6.1% over the past year, which was the 6th-largest increase in the nation. Austin was the only Texas metro among the top 10 growth leaders. San Francisco topped the list with a rent increase of 12.6% last year.

Apartment occupancy in Austin was reported earlier this year at an impressive 94.6%, with an average rent of $917. If you’ve ever tried to find your dream apartment in Austin - one that’s centrally-located, spacious, well maintained, AND affordable—you know the hunt can be grim. Jim Gaines of the Real Estate Center at Texas A&M told KUT, “Finding suitable sites in Austin can be challenging. It all leads to greater demand for the units and means that rents are going to go up.”

But with demand at an all-time high, the apartment construction business is racing to capitalize. Austin Business Journal recently shared Austin Investors Interests LLC data that over 9,000 apartment units are under construction today, with about 9,000 more planned to begin next year. This is a huge jump in comparison to just last year, when only 257 units were added in the first quarter.

Many of the new apartment developments will be in the form of high-rises close to downtown, where the rental rate per square foot is more desirable for developers. They have smaller portions of land to work with, so apartments are going vertical instead of horizontal.
While the growth may seem excessive, real estate professionals are predicting the Austin market can easily fill these units. It could take 3 to 4 years for multi-family housing to catch up with the current demand.

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