Rent Control

How high will Austin rent prices jump in 2015? Expert predictions revealed

Austinites should expect to pay higher rent prices in 2015.

Photo courtesy of Amli

KVUE — A new real estate forecast suggests those who rent in Austin should brace themselves for another increase in rent prices in 2015.

Andy Hill, senior vice president of Berkadia Commercial Mortgage, LLC, said job and production growth play a part in the rent increase. "It all comes down to supply and demand," said Hill. Berkadia's latest market review predicts rent will jump 4.5 percent by the end of the year, making the average rent at market price $1,185 a month.

Berkadia predicts rent will jump 4.5 percent by the end of the year, making the average rent at market price $1,185 a month.

"I think you've got to dive into that number a little bit. That number includes the demolition and re-development of sites from older class C or D apartments into [a] new product, which by its nature carries higher rents," said Hill.

He also said new, high-end complexes play a factor in a higher rental average.

But if the average rent is $1,185 dollars a month, some wonder how much money they need to make to live in Austin.

"I'm used to, you know, living off of a coffee shop job and be able to make it and live more sustainably," said resident Douglas Kennedy.

City of Austin staff consider "affordable" housing to be 30 percent of a person's monthly income. That means a person would need to make $3,950 a month or $47,400 a year if their rent is $1,185 a month. But the city considers the living wage to be $11 an hour, which only equals $22,880 a year.

"It seems like the population of working class citizens in Austin now are getting pushed further outside of the city center," said Kennedy. Which makes it hard for him because he works downtown.

While some can't afford to live downtown or in Central Austin, rent in other parts of the city and even the suburbs is also increasing because of the demand.

"All the new stuff that's been built over the last few years has largely been leased up," said Hill. "The good news for renters in the city of Austin is developers continue to put new product on the ground. We're continuing to see new product in markets outside of the CBD (Central Business District) and outside of Central Austin."

According to the Berkadia report, developers are set to build 10,670 units in 2015. Hill said the more affordable units will be in the cities just outside of Austin. He added that he expects the rental market to plateau at some point, but no one knows when.

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Quiet Down Payment

Austin developers have new rules for building near music venues

Riders Against the Storm performing in Austin

Photo courtesy of KVUE

Developers will have to conduct sound assessments in some cases. (Pictured: Austin duo Riders Against the Storm)

A cornerstone of what makes Austin a special place to live is the prevalence of live music everywhere. It's something that some Austinites fight to protect.

"I put on a deep voice and say 'because it's very important to our economy,' but it is," said Dr. Sullivan with the Cultural Trust Advisory Committee. "Austin's reputation is that it is a very important place for entertainment."

However, that reputation can also be a curse. So council members approved new rules for developers who want to build homes and hotels near noisy venues.

For years, Sullivan said neighbors and hotel guests have been complaining about noise from nearby venues.

"Neighborhoods have a right to complain when there's noise from highways, from people blowing their horn in the street, or from a nearby music venue that's blasting out bass," Sullivan said.

It's something that Anna Bunker, who lives off South Lamar Boulevard close to venues like Saxon Pub, said she has to manage nightly.

"My quality of sleep ... Like nightlife would be better if that was definitely toned down," Bunker said. "I don't want to be going to a bar every single night."

The Austin City Council took action by approving an ordinance that helps developers understand the sound levels in their area. The ordinance requires new residential and hotel development projects within 600 feet of an establishment with an outdoor music venue permit, or within 300 feet of a performance venue, to conduct a sound assessment.

Officials will also create a mapping tool that helps future residents learn about nearby businesses that are music-related.

Read the full story and watch the video at KVUE.com.