Austin Apartments See Higher Demand, Occupancy, and Monthly Rents
For the past few years, Austin renters had a break from rising apartment rents. However, this past June, Austin hit an all-time high with rents with $1,278 a month. Charles Heimsath, an Austin-based real estate consultant who tracks the local apartment market said he expects the market to continue going upward. While this is good news for developers, the rising prices are not so good for renters.
There are a few factors influencing the rises in rent, one being job growth. With the expansion of local companies and new ones moving to the city, Austin has experienced a surge in job growth and therefore a surge in leasings as well. Furthermore, the “apartment lifestyle” has grown in popularity recently as millennials moving to cities want the flexibility to up and move whenever.
From January to June alone, Austin leased 5,891 units more than what was leased in all of 2017.
“Our absorption has really accelerated, and that’s driving up occupancy and filling up the units. And when apartments get filled up, landlords can start raising rents again.”
Charles Heimsath | Austin American Statesman (Shonda Novak)
With higher occupancy rate in Austin apartments, the prices have increased: “In the Austin region, rents across all unit sizes averaged $1,278 a month, a record high and up from the $1,246-a-month average in June 2017,” according to Heimsath’s data.
With the expectation that demand for housing in Austin will remain strong through 2018 and 2019, many new projects are in the works and construction has already started across the city.Posted on Monday, August 13, 2018