According to a recent report by Berkadia and reported by the Austin Business Journal, Austin rents are expected to rise again in 2015. This rise is pretty significant when you consider the amount of supply being added to the market. Report after report continues to confirm how strong the Austin real estate market is and how it is expected to continue.
Renters Snatched Up 9,150 of the 9,340 New Units Delivered in 2014
Builders added nearly 10,000 units to the market in 2014 and renters wasted no time snatching those up. Even in spite of the increase in supply, overall rental vacancy rates in Austin reached their lowest point since 2006 citywide.
Austin Will Add 10,670 New Units in 2015
This year, builders are expected to add even more units than they did in 2014 at nearly 11,000, which shows their confidence in the direction of the rental market in Austin.
Austin Rents Expected to Rise 4.5% in 2015
Even with the addition of 20,000+ new housing units over the past two years, Austin rents are expected to rise in 2015 by 4.5%. I can’t name too many other cities that are growing this fast.
Rent Increase is More Proof Austin is the #1 City to Invest
Though Austin is the most expensive city in Texas, it’s also the best! Austin was recently named the #1 city to invest by Forbes Magazine, even considering the strong Austin real estate market. While it’s true you can buy rental property cheaper in other Texas cities, the instability in the oil prices will have an impact on cities like Houston and property owners could be left holding the bag. Austin is diversified outside of oil and does a pretty good job of insulating itself from the ebbs and flows of the oil industry. Houston and Dallas also have higher vacancy rates and more time in between tenants. If you’re an investor looking to buy some of Austin’s housing supply, buy now so you’ll be prepared for the busy Spring/Summer rental season.
Renting? Stop Wasting Money and Take Advantage of Low Down Payment Loans
If you’re a tenant and are tired of constantly increasing rent payments, consider buying. Credit standards have loosened and conventional lenders are offering loans with down payments as little as 3%. FHA also has a program, that usually comes with more fees, but will allow you to buy a home with as little as 3.5% down. This program works great for buyers who have less than perfect credit. Either way, it is worth exploring the buying process, if for nothing else to stop your monthly housing expenses from going up every year.
Thinking of Buying or Investing in Austin?
Our team of experienced buyer’s agents know the Austin real estate market well and can help you negotiate the best deal possible on a home or condo in Austin. If you think it’s time to buy, but aren’t quite sure where to live, try our Austin Neighborhood Finder. When you’re ready to get started with the process, check out our Austin Home Buyers page to learn more about the process and our team. Then, call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Buyer Survey to get started. And remember, our fee is paid by the seller, so it costs you nothing if you hire us to represent you when you buy a home.