Our very own assistant manager, Ingrid Evens, was interviewed by the Austin American Statesman about rent which, after being on the rise for the last several years, the Austin rental market is finally leveling off. Ingrid said that even though rent normally shoots up a lot in the summer, this year “it has stagnated. It hasn’t gone up as much as recent summers.”
Rent was $1,246 in June in the Austin-Georgetown area, an increase of 1.5 percent from last year. Between 2011 and 2016, rent went up about 5.8 percent annually, for a total increase of 32.5 percent.
Rent is leveling off in Austin.
The slowdown is due to the fact that supply has increased to the point where it approximately equals demand, which results in monthly rents increasing very little if at all.
The occupancy rate was down a little to 93.3 percent. In just the first half of this year, 4,136 apartments became available.
This trend of slower increases in rent is expected to continue for the next 12 to 18 months, but rent should eventually go up, especially if Austin adds 60,000 new jobs in the next two years as forecast. Those new workers will gobble up the new apartment stock, causing demand to outpace supply once again shortly.
Austin’s occupancy rate for high end apartments, (86 percent), is the highest of any of the state metro areas. Average rent for a high-end one bedroom is $1,561, also the highest rent for high end apartments in the state. In addition, Austin offers the least concessions of anywhere in Texas.
The number of new apartments under construction and due to be delivered in Austin are on a downward trend. However, developers are still building new units, confident that Austin’s popularity will not wane anytime soon. Construction is especially hot in the East Riverside area.