The Carvajal Group Blog

Rental Rates Expected to Rise in 2011

May 1st, 2011

Apartment rents are expected to rise 4 percent this year in Austin, Texas.

The average rent prices in Austin, Texas are expected to increase by 4 percent in 2011 according to Marcus and Millichap, a California-based real estate analysis firm.  In 2010, 2,900 rental units were constructed in the city.  This year, that number is expected to decline to 1,000 new rental units go up in the metro area.  Although this decrease in new construction is expected in 2011, job creation should take a jump.

Marcus and Millichap predict that local Austin employers will create about 21,000 new job positions this year, whereas last year, 2010 only saw 14,400 new jobs created.

Marcus and Millichap expect average rental rates to increase by 4.2 percent from last year to $894.00.  Another interesting note is the introduction of a new city rule that will require owners of energy-inefficient apartments to cut their electricity consumption by 20 percent.  Details are still being discussed and the City Council is still deciding how they will require apartment owners to disclose the energy efficiency of their buildings to current and potential future tenants.  Although all the details of this new rule are not finalized just yet, we can be certain that the new rule will definitely change the way people hunt for housing.

Overall, the slowing of construction, an increase in employment and job opportunities, the influx of new businesses, and the new energy efficiency disclosure will push the average rent prices in Austin up.

Essentially, the rental market in Austin is seeing an increase in demand and a steady level of supply but for now, demand is superseding supply.  For the Austin economy, the increase in demand means great things ahead.  For the average renter in Austin, this means they should expect to see a hike in rental rates.  For sellers unable to sell their home, (most likely because they are not using agents at The Carvajal Group to list & sell it) it is a smart idea to consider renting your house out temporarily.

For more information on rental rates or the real estate market in Austin, contact The Carvajal Group at 512-419-7770 or search for lease properties here.

 

Tags: Austin Job Market · Austin Real Estate · Austin Real Estate Market · Austin Rental Property · Uncategorized