In a recent article in the Austin American Statesmen it was reported that apartments rent in Austin have hit their highest ever. The average rent for an apartment in Austin is $1,.278 a month as per June of this year. Local real estate tracker Charles Heimseth of Capital Market Research states that job growth fueled by new companies coming to Austin is driving demand for rental housing. This of course has been a long established trend. The absorption rate for apartments for June is reported at 92.3% and this also adds to the higher rental rate. Heimsath also stated that the life style of renters is also changing. Renters are not just folks that can’t buy a house they are folks who “choose” not to buy a house because they want the freedom to move .
The statistics for rental housing from the Austin Board of REALTORS (ABoR) is pretty much in line with apartment renting statistics. ABoR reports that in June the average rent for a house in the Austin-Round Rock MSA was $1,695 – that’s strong. This come out to $1.07 a square foot which comes out to the average size rental being about 1,600 square feet. Experience tells me that this is probably a 3 bedroom 2 bath house. So the sweet spot for new and even existing investors is that kind of rental. Make it a one story home with neighborhood pools and parks and bingo you have found the ideal rent house.
Rick Ebert / Austin, Texas / 21 July 18