Wednesday, December 31, 2014

Austin Apartment Shortage Leads to Increased Rents


Occupancy rates in Austin are at about 97 percent, which while down a percentage from a year ago, are still creating high rents for Austinites.  I was recently interviewed by KVUE about the apartment shortage in Austin and how it is affecting renters.

A healthy market occupancy rate is 92 percent.  Once occupancy climbs above that, expensive rent becomes the norm.  Austin has seen rent climb since about 2009.

For those moving to Austin from other states, such as California, those rates seem like a steal.  But to longtime Austinites, the $1.15 per square foot market average can be over their budget.  A one-bedroom apartment is considered affordable if it costs $700 a month, although those rates tend to be at apartment communities on the edge of town.  A one-bedroom downtown apartment starts at $1,400 to $1,500 monthly, and the new apartments being built around the city and even in neighboring cities cost almost that much.

The market to purchase houses hasn't fared much better, with prices continuing to climb and increased competition.  Houses are often getting multiple offers in a matter of 48 hours, which keeps people who would like to own a home living in apartments longer than they would otherwise choose to.

The apartment market in Austin may seem scary, but let us help.  A Plus Apartments knows the rates, vacancies, and move in specials at the most desirable apartments across the city and can help you find a place that works within your budget, all for free.  Call us today at 512-231-1400.