Austin Leasing Update – April 2006

Leasing Market Update

The Leasing Market in Austin is still holding steady, with minor gains over April a year ago. Property Managers I talk to tell me they are starting to increase rents very selectively in some of the stronger areas closer to downtown, and with some of the better homes. This is still a renter’s market, but the market is absorbing 55% more rental inventory than this time last year. If job growth in Austin remains strong as expected, and sales prices continue to climb, it’s only a matter of time before the rental market follows.

I’ve included more information this month than I normally do. As we head into the busiest leasing months of June, July and August, I thought it would be a good time to look at some Year-to-Date numbers as well as some additional breakdowns of areas.

First, let’s look at April 2006 compared to a year ago. Average rents are up 1.2% from a year earlier. Price per square foor is about the same, down $0.01, and the Days on Market is slightly better.

 

Austin Leasing Stats April 2006
All MLS Areas Houses Only
Apr 2005
Apr 2006
# Leased
417
649
Avg List Price
$1253
$1265
Median List Price
$1145
$1150
Avg Leased Price
$1235
$1250
Med Leased Price
$1100
$1150
Avg Size SQFT
1822
1859
Median SQFT
1656
1779
Avg $ per SQFT
$0.68
$0.67
Avg Days on Mkt
62
59
Median Days on Mkt
50
45

 

Next, let’s look at Year to Date leasing figures through April 30, broken down by different cities, MLS Areas, and number of bedrooms. Normally, what I report is a macro view of the entire MLS, but it’s helpful to see how different areas are performing.

 

MLS Area or City
# Leased
Avg $
Leased
Avg
SQFT
AVG $
Per SQFT
Avg
Days
Austin
1161
$1291
1728
$0.75
56
Round Rock
372
$1139
1972
$0.58
68
Cedar Park/Leander
253
$1129
1980
$0.57
65
Hutto/Manor/Elgin
154
$1023
1862
$0.55
82
Kyle/Buda
146
$1045
1800
$0.58
69
Dripping Springs
18
$1539
2188
$0.70
57
Lakeway
20
$1685
2061
$0.82
58
Pflugerville
207
$1123
1893
$0.59
74
Westlake
33
$2188
2347
$0.93
40
Georgetown
42
$1112
1749
$0.64
65
Austin Locations BY MLS Area – Houses Only – YTD April 2006
E. C. Austin (Area 3,5)
84
$1037
1266
$0.82
61
S. Central Austin (6,7)
41
$1344
1210
$1.11
38
South Austin (Area 10)
187
$1095
1469
$0.75
51
SW Austin (Area SW)
119
$1480
2118
$0.70
53
West Austin (W)
14
$1931
2250
$0.86
57
Central Austin (1B,4)
77
$1585
1446
$1.10
50
NW Hills Austin (1A)
8
$1959
2149
$0.91
49
River North (RN)
24
$2283
2881
$0.79
60
Lake North (LN)
21
$1162
1481
$0.78
65
Area 1N (NW Austin)
70
$1245
1748
$0.71
50
Area NW (NW Austin)
64
$1274
1939
$0.66
67
N. Central Austin (2)
38
$1078
1215
$0.89
54
North Austin (2N, N)
94
$1086
1593
$0.68
67
Nrth East Austin (NE)
63
$1130
1824
$0.62
63
E. Austin (3E, 5E)
40
$1079
1656
$0.65
71
SE Austin (9, 11, SE)
88
$995
1551
$0.64
64
Austin by # Bedrooms
– All MLS Areas – Houses Only – YTD April 2006

1 Bedroom Home
15
$719
679
$1.05
57
2 Bedroom Home
126
$1013
1020
$0.99
43
3 Bedroom Home
1478
$1112
1637
$0.68
62
4 Bedroom Home
751
$1360
2229
$0.61
67
5+ Bedrooms
58
$1827
2997
$0.61
64

 

Homes in the city of Austin outperform rental homes in all other areas except Westlake and Lakeway, both immediately west of Austin. But as you can see, there are very few rentals in those areas.

Look at Hutto, Manor, Elgin (all suburban areas east and northeast of Austin) where all the cheap newer homes are being built. These take a long time to rent and receive the lowest rent price per square foot of anywhere in the Austin area. Investors are drawn out to these areas by lower purchase costs, but vacancy loss can easliy eat up the bargain price. I still think investors are better off staying closer to Austin, and buying existing homes in developed neighborhoods with better schools.

Finally, I threw in a breakdown of bedrooms.

If you haven’t already, also look at the 2005 Austin Rental Market Summary for more Austin rental market info.

Posted by Steve
10 years ago
Steve

Steve is a Real Estate Blogger, Husband and Dad, UT Austin Grad, Runner, Real Estate Broker and owner of Crossland Team and Crossland Real Estate in Austin TX.

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