Austin apartment rents are on the rise, yet again
Abodo Apartments released its October rent report, taking a close look at rental price trends from September to October. As the fourth quarter begins for many businesses and real estate companies, Abodo wanted to examine the Q3 trends in Austin — one of the country’s most popular cities and hottest rental markets.
What happened in the Austin rental market last quarter? A few key findings include:
- Rent prices in Austin increased from July to the end of September by 2.51 percent.
- The median price of a one-bedroom apartment in Austin in July was $1,154.
- The median rent price of a one-bedroom apartment in Austin as of the end of September was $1,183.
- The median rent price of a two-bedroom apartment in Austin as of the end of September was $1,448.
- Austin ranks as the 24th most expensive rental market in the country.
So, what does this tell us about the Austin rental market as we move closer to 2018?
Austin rent has continued to increase. And it’s difficult to avoid a rent increase when you’re living in the best city in the country, according to U.S. News & World Report. In 2017, Austin bumped Denver as the most popular city in the country. With that comes more people. More new residents moved to Austin last year than ever before, and this impacted the rental market in a major way. With demand at an all-time high and rising last quarter, there’s no telling when the Austin market (and popularity) will end.
The rent increases in Austin, in part, have resulted from an influx of new residents. But other factors have come into play as well. Some industry experts have suggested that landlords are feeling pressured because of increased demand for units while inventory is low, thus prices have been on the rise.
Another factor to keep in mind: The U.S. rental market saw historically low levels during the mortgage finance boom and has been steadily shifting to historical norms since the mortgage bust. This boom-bust cycle also impacted new apartment starts. With homeownership rates falling, it makes sense for landlords to continue to raise pricing on their rental units, especially in markets with tighter inventory like Austin.
Overall, it might be a while before residents see relief from these all-time high rent prices.
To gather this data, the Abodo Apartments aggregates and analyzes data from the millions of verified listings on abodo.com. Each listing is paired with a ZIP code. And within each ZIP code, Abodo calculates the average price of one-bedroom apartments that are currently available for rent within a specified time period.