The article below appeared last saturday in the Austin American Statesman. It’s good news, but I want to point out a big difference in Austin’s Apartment market and the single family rental home market in Austin.
While new supply of apartments has slowed, creating a tighter supply (the article quotes the 1819 units added this year as the lowest number since 1993), single family homes for rent in Austin continue to be supplied in ample amounts by new investors, which is holding the rents down. Each time an investor buys a home that was previously owner/occupied, or a new home that would otherwise be purchased by an owner/occupant, that adds more supply to the rental home market and gives renters more to pick from. Currently, landlords are still competing for fewer renters than there are homs for rent, which is holding rents down. (October 2005 average single family home rents actually fell from Oct 2004)