Last week it was reported that Austin, Texas apartment occupancy has risen 3.5% since last year. Now 91% of Austin apartments are occupied. Since December, the number of occupied apartments in Austin has increased by 4,800. 88% of the additional occupied units were in "Class A" apartments. Rents rose 2% as fewer incentives are being offered and far fewer apartments are being built. Downtown, I have noticed that the generous incentives of 3 months free rent has been cut in half and occupancy in some Downtown Austin buildings is closer to 95% and staying there.
Why does this matter? It matters because it indicates that people are moving to Austin. It means more people have jobs and households are forming. Higher apartment occupancy leads to higher rents which leads to more incentive to buy. Many of these newly formed Austin households will eventually make the decision to buy an Austin, Texas home or condo. Further evidence that Austin is a desirable place to live and invest.
Contact me to find your Austin, Texas home.
Jeff Harris
Realtor/ Mortgage Broker
True Austin Properties
Jeff - Glad to see somebody is watching rental rates for the implications for the broader market. It also makes investment properties look attractive as rental rates increase with demand going up for rental units.
You are correct Patrick. Firming rental market is great for property sales in the long run.