WOW! I’m amazed at how quickly a formerly depressed segment of the Austin real estate market can turn around. The Austin, Texas small unit (2-4 units) rental market is a textbook example. The notable drop in home ownership rates from 69% in 2005 to 66% in 2011 has created about 5 million new renter households. Here’s why now is the time to purchase Austin investment real estate.
Demand for Duplex and Multi-Family Rentals on the Rise
Austin real estate experts predict it could take three years or more to catch up given the volume of pent-up demand. Demand for small rental units are expected to remain strong for an even longer period because developers have a small selection of permissible land available, even in the outlying suburbs. This limited selection of develop-able property is forcing developers to build more mid-rises and high-rises. For the renter who desires a homier, less dense feel small duplexes and triplexes are preferable.
Most Former Homeowners Rent Homes or Duplexes
Studies estimate about 70% of former homeowners rented a single family or small multi-family property. Construction of new multi-family hit bottom in 2011, just as demand increased. Now multi-family units are in short supply. Austin rents are rising and competition is fierce, particularly for well-located property served by superior schools, convenient to shopping and transportation.
Stick with small, (2-4 unit) multi-family properties (duplexes, triplexes and quads) or lower priced single family homes (below $200,000 in most areas). Pay attention to schools and buy in the best school district you can afford. Not sure where these areas are? We can help!
Thinking of Investing in Austin Real Estate?
There couldn’t be a better time than now. Interest rates are at historic lows and demand for rental units in superior school districts and locations is on the rise. Currently the best duplexes and multi-family units are selling quickly, so it is important to work with an Austin Realtor who can help you identify and evaluate quality rentals.
We’ve helped several investors over the years purchase investment property and own several investment properties ourselves. Check out our Buyer Representation Program to learn more about how we’re different than your average Realtor. Then call us at (512) 827-8323 or email us at info@AustinRealEstateHomesBlog.com to schedule a no obligation consultation.