Austin Leasing Stats – August 2006 Update

Austin Rental Market Update

Average rental rates for single family homes in Austin increased 6.6% from August 2005. The increase was 4.2% for July, but as of mid-year 2006 (June), the overall rental rates were down 1% from the same year to date period of 2005. So we have a two month upward trend that we need to keep an eye on. If Austin ends the year with an overall increase in rental rates, it will be the first time it’s happened since 2001. Each year since 2001, rental rates have fallen from the year before, though the rate of decrease has been getting smaller.

We are still seeing very strong absorption of new supply. Investors are keeping the market supplied with plenty of rental homes, but demand is keeping up. 41% more homes have leased through the Austin MLS through August 2006 than did through August 2005. I say this in every rental market update, but when something happens to curb investor activity, we will see rents start to increase again. That may have started happening as prices have risen nicely in the past year while rental rates have pretty much stayed flat overall. This makes the ratios harder to accept for new investors, but we still have plenty of investors buying single family homes in Austin.

 

Austin Leasing Stats August 2006
Previous Month and Year Comparison
All MLS Areas – Houses Only
July 2006
August 2006
August 2005
Yr % Change
# Leased
741
773
620
+25%
Avg List Price
$1317
$1363
$1281
+6.4%
Median List Price
$1200
$1200
$1195
0%
Avg Leased Price
$1307
$1352
$1268
+6.6%
Med Leased Price
$1200
$1200
$1175
+2%
Avg Size SQFT
1913
1887
1829
+3%
Median SQFT
1804
1753
1722
+2%
Avg $ per SQFT
$0.68
$0.72
$0.74
-3%
Avg Days on Mkt
47
44
53
-17%
Median Days on Mkt
36
34
44
-23%

 

Below is a Year-to-Date summary through August 2006 compared to the same period 2005. Notice that except for number of homes leased and the Days on Market, the numbers are mostly unchanged. So even though July and August are showing rental rate gains, the first part of the year lagged, bringing down the averages overall.

Austin Leasing Stats August 2006
Year to Date Previous Year Comparison
All MLS Areas – Houses Only
YTD August 2006
YTD August 2005
Yr % Change
# Leased
5572
3934
+41%
Avg List Price
$1268
$1259
0%
Median List Price
$1150
$1150
0%
Avg Leased Price
$1256
$1246
0%
Med Leased Price
$1150
$1150
0%
Avg Size SQFT
1845
1799
+3%
Median SQFT
1750
1691
+3%
Avg $ per SQFT
$0.68
$0.69
-1%
Avg Days on Mkt
55
61
-10%
Median Days on Mkt
42
49
-14%

 

Below are the August Leasing stats broken down by MLS Area. In previous months, I’ve broken down stats into broader geographic areas (combined MLS areas and/or Cities) because, on a monthly bases, the sample sizes in many particular areas are too small to be valuable. But that was resulting in some overlap. For example, “Austin” includes parts of Hays County, so stats for “Austin” might have duplicate properties from area “HD” as the northeast portion of HD has an Austin mailing address. There is not a perfect way to segment the areas, so this month I’m sticking strictly to just the MLS areas alone and I’m running the number year-to-date instead of just one month. An MLS Map is included below to you see where all the areas are.

 

Austin Leasing Stats thru August 2006
Austin Leasing by MLS – All Areas
Houses Only – August 2006 Year to Date
MLS Area
# Leased
Avg $
Leased
Avg
SQFT

Avg $
Per
SQFT

Avg
Days
Area 1A
18
$2181
2321
$0.94
47
Area 1B
116
$1872
1572
$1.19
44
Area 1N
60
$1374
1838
$0.75
44
Area 2
101
$1134
1218
$93
39
Area 2N
96
$1063
1455
$0.73
60
Area 3
118
$1121
1403
$0.80
57
Area 3E
41
$1082
1492
$0.73
65
Area 4
113
$1554
1303
$1.19
50
Area 5
105
$996
1204
$0.83
60
Area 5E
44
$1028
1704
$0.60
73
Area 6
78
$1328
1190
$1.12
38
Area 7
20
$1478
1394
$1.06
30
Area 8E
30
$2686
2345
$1.15
30
Area 8W
66
$2253
2526
$0.89
42
Area 9
16
$1064
1353
$0.79
38
Area 10
400
$1136
1518
$0.75
42
Area 11
91
$983
1422
$0.69
57
Area BA
54
$942
1558
$0.61
40
Area BL
0
0
0
0
0
Area BU
3
$1231
1710
$0.72
30
Area BW
9
$1022
1678
$0.61
48
Area CC
5
$895
1294
$0.62
29
Area CL
689
$1176
2006
$0.59
52
Area EL
16
$1018
1860
$0.55
79
Area FC
0
0
0
0
0
Area GP
0
0
0
0
0
Area GT
120
$1156
1813
$0.64
55
Area HD
63
$1646
2178
$0.76
58
Area HH
295
$1077
1823
$0.59
56
Area HS
7
$1137
1848
$0.62
103
Area HU
181
$1033
1869
$0.55
70
Area HW
21
$1277
1803
$0.71
95
Area JA
2
$1325
1603
$0.83
46
Area LC
0
0
0
0
0
Area LH
2
$987
1321
$0.75
14
Area LL
0
0
0
0
0
Area LN
61
$1255
1675
$0.75
63
Area LS
140
$1741
2104
$0.83
53
Area MA
91
$1041
1821
$0.57
82
Area MC
0
0
0
0
0
Area N
128
$1184
1735
$0.68
48
Area NE
140
$1140
1810
$0.63
57
Area NW
170
$1308
1959
$0.67
50
Area PF
434
$1143
1927
$0.59
64
Area RN
76
$2306
2854
$0.81
52
Area RR
840
$1177
2014
$0.58
59
Area SC
34
$1233
2159
$0.57
53
Area SE
47
$1058
1876
$0.56
79
Area SV
5
$1014
1633
$0.62
59
Area SW
296
$1497
2156
$0.69
47
Area TC
9
$763
1369
$0.55
75
Area W
42
$1787
2173
$0.82
50
Area WE
1
$695
1110
$0.63
38
Area WW
1
$1250
2016
$0.62
19
Area OT
0
0
0
0
0

 

Austin MLS Map

If you’re not completely familiar with Austin, dowtown is located at the lower part of Area 4 and the lower (Southeast) portion of Area 1B.

Finally, below is a graph showing historic rental averages for Austin. It shows clearly the steep fall in rental rates that started in 2002 and is approaching a bottoming out this year or next.

Austin Leasing Stats

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.

Click Here to Leave a Comment Below

AustinContrarian - 10 years ago

Thank you for taking the time to post these stats. I check your 2005/2006 home sales data periodically.

You may have no interest in this or time to do it, but it would be very interesting to know whether the McMansion ordinance has had a discernible effect on home sales in central Austin. That is, if you broke out 2005/2006 home sales by neighborhood and home or lot size, have large homes/lots seen a larger increase than small homes/lots?

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Atxdude - 10 years ago

Aww, Contrarian, don’t feel bad because you missed out on the Milago or other similar projects. I read your blog, and I believe the wealthy will always pay extra to live where they want to live, instead of saying “oh well” and bying cheap homes on the outskirts.

To prove my point, I will say that for several months now, MLS area 10 has been the fastest selling and appreciating area of town (that’s from the ABOR statistics). They also have some of the most affordable housing. If anything, it’s not the “McMansions” (a term coined by the jealous who can’t afford them) or downtown condos that are the problem, it’s the bargain hunting invetors from Cali.

Reply
Steve - 10 years ago

> have large homes/lots seen a larger increase than small homes/lots?

It would be hard to test for that since the necessary MLS field showing lot size is not reliable. Many agents leave the lot deminsions blank in the listing because the lot deminsions do not always auto-populate properly.

Off the top of my head, with no data, I’d have to say I don’t think the McMansion ordinance is going to be detrimental to the resell value of older central homes on smaller lots.

Steve

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