The good news is it may be the nudge many potential homeowners need to take a step toward purchasing a home, be it a first-time home, a weekend property, a luxury home, or even an investment property to take advantage of these high rental rates.
Austin, Texas (PRWEB) August 18, 2012
Regent Property Group reports the Austin apartment market is on a streak as hot as August in Texas, with rents and occupancies reaching their highest levels in 21 years. “The Austin midyear apartment occupancy rate stood at just shy of 98%,” said Austin Realtor Brian Talley. “That is the highest rate local Realtors have seen since 1991.”
Rents are directly impacted by high occupancy rates. Regent Property Group reports that rental rates reached a new high average of $953 a month, which can equal a mortgage payment in many neighborhoods like Olympic Heights and Milwood. At this time last year, the average rate was $900 a month. To try and meet the need for more rental housing, Austin builders are currently at work on more than 10,000 apartment units, but demand is still easily outpacing supply.
“Downtown Austin is the most sought-after area for rentals, with78704 one of the most popular zip codes,” said Talley. “The good news is it may be the nudge many potential homeowners need to take a step toward purchasing a home, be it a first-time home, a weekend property, a luxury home, or even an investment property to take advantage of these high rental rates.”
Austin’s rental market is being driven by one of the strongest job markets in the U.S. coupled with more than 50,000 new residents coming to the area per year, and a shortage of affordable units. These two facts can lead tenants to expect escalating rents to continue their upward momentum.
"Austin is behind on keeping pace with the demand for rental units,” Talley said. “The recession dampened the development industry, and now it’s moving double time to keep pace with the growing need. In addition to the 10,000 units under construction, at least another 8,000 are planned for completion in coming months.” Austin is among the tech-oriented markets that likely will continue to experience strong rent increases over the next five years as job growth drives up rent demand.
On the buyer’s side, home prices are rising much slower than their rentable counterparts, and interest rates on mortgages remain at an all-time low. “In Austin, the incentive to buy a home rather than rent is incredibly strong, but many young professionals are still hesitant to purchase, which they will pay for in terms of inflated rent,” Talley said.
About Regent Property Group:
Brian Talley is the founder and owner of Regent Property Group. He is ranked among the top 1% of selling agents out of the 5,313 Austin Board of REALTOR® members. Over the past four years, Talley has been a top producer closing multi-million dollars’ worth of transactions for homes located all over Austin. Talley has been active in real estate since 1998 where he began his career working in retail development, sales, and marketing. He formed Regent Property Group to serve the needs of Austin’s residential real estate clients, helping people buy and sell luxury homes in the greater Austin area. Contact Regent Property Group today at 512-554-9714.