Luxury Apartment Living
New luxury apartment buildings blow up the Austin housing market
Austin is one of the hottest rental markets in the U.S., so it's not much of a surprise to learn that we like our apartments fancy. How fancy? Of all the apartment projects completed in 2015, 92 percent of them were high-end.
Using data from Yardi Matrix, RentCafe sifted through all the large-scale, multi-family properties built last year to find the high-end or luxury ones.
In San Antonio, 100 percent of all new apartments that went up last year were high-end. That's right, 100 percent. In Dallas, the number is 93 percent, 1 percent ahead of Austin. Eighty-nine percent of Houston's new apartments were high-end, and Fort Worth slides in with 86 percent.
Nationally, the trend is at 75 percent, with the Southwest (hello) and Mid-Atlantic regions leading in luxury construction at 88 percent.
A handful of cities experienced "spectacular" growth in the luxury apartment area, including Midland-Odessa and its 800 percent increase. In 2012, there was just one high-end rental complex. As of 2015, there were nine.
RentCafe points out the Texas domination, noting that "urban Houston, Dallas, San Antonio, Austin, Midland, Fort Worth, and Spring saw a combined total of 103 new luxury rental properties in 2015 and only six non-luxury rental properties."
These well-off renters-by-choice are proving their demand, as RentCafe found that the average occupancy rate in high-end rental properties was 95.8 percent as of the end of 2015.