AUSTIN APARTMENT MARKET UPDATE
Not many bargains for renters
Austin apartment rents rising
Austin American-Statesman
A year ago, Austin apartments were offering cruises and two months' free rent to lure tenants. Now the Austin', Round Rock and Cedar Park's continued job growth, together with a sharp decline in the number of new apartments units being built, has boosted occupancies to their highest level in more than three years.
Austin metro area rental rates are expected to increase about 3 1/2 percent this year, with rentsaveraging $748 per month by the end of the year, according to M/PF, which tracks the apartment market in 58 cities nationwide.
And renters can expect fewer freebies when they sign a lease.. And if they are renewing a lease, they should expect an increase in their rent.
"Rents are going up, and specials are going down," said Mike Stotts, owner of HomePlace Apartment Search, an Austin-based apartment locator service. "The market is definitely on the upswing."
About 60% of the apartment communities surveyed are offering incentives, the specials offered aren't nearly as great. Apartment landlords' positions have strengthened as occupancy levels have increased.
In fact, experts say the Austin Round Rock Cedar Park metro area registered the largest increase in occupancy anywhere in the U.S.: from 89% in Dec. 2003 to 91% in Dec. 2004.
Austin apartment ental rates also are rising, showing their first increase since mid-2001.
Overall rental rates averaged $726 in Dec. 2004, up from $712 in Dec. 2003.
Although Austin's occupancy levels have increased, they are still far off the peak levels of 98% reached during the tech boom in late 90s and 2000..
Occupancy levels should increase during 2005, giving further impetus to apartments to raise rents.
Many factors are contributing to the market rebounnding. Firstly,: ann increase of 7,100 jobs in the Central Texas area between November 2003 and November 2004, the largest job growth since the tech boom of the 90s.
Also, fewer apartments got built. Last year, over 2,200 apartment units were added, fewer than half the 5,000+ apartment units that came on the market in 2003.
"I think this year, job growth will be the primary driver in the market," Heimsath said. "I feel very comfortable in saying that both rents and occupancy will continue to rise gradually throughout 2005."
August 2004 Austin apartment Update
After 9 to10 years of declining rental rates, the average apartment rent in Austin Texas has plateaued resulting in a minor increase in occupancy levels.
According to a middle of the year 2004 study released by ALN Systems Inc., Carrollton based apartment market research company, Austin's average apartment rent is the same as that of the first quarter: which was 84 cents per sq ft.
The average Austin apartment apartment rented for 89 cents PSF in the 2nd quarter 2003
Occupancy levels for Austin apartments .rose 02% from 88.4 % in the 1st quarter of the year to 88.6 percent for the 2nd quarter. The prior occupancy level for the 2002 2nd quarter was 88 %.
The highest average rents were in Central and downtown Austin,with an average of $1.03 PSF. NE Austin had the lowest avg. rents at 74 cents PSF.
© Austin Business Journal
