Austin Rental Market Update – March 2007

Average rents for single family homes in Austin jumped 10% in March 2007 over the same month a year ago, to $1301 per month. Median rent increased 8% to $1195, meaning half of all homes in Austin lease for more than $1195 and half for less. Average days on market for rental homes fell 18% from 62 days a year ago in March to 51 days this March. Median days on market fell 28% from 50 to 36 days, meaning half of all homes leased through the Austin MLS now rent in 36 days or less. The average price per square foot is up 4.5% from $0.66 to $0.69. The number of homes lease was down 3.6% from 653 leased in March of 2006 to 629 leased March 2007.

All together, this is very good news for Austin rental property owners and property managers. Rents seem to be continuing the long climb back to where they were before the tech bust and Austin’s 4 year rental market slide from 2002 through 2005. Last year, 2006 was the first year in 5 years that average rents for the year took an upward turn. It was a very slight upward turn (see graph below), but it marked the end of a rough 4 years of declining rent rates.

As we’ve completed 3 months of 2007 now, I have resumed the year-to-date breakout of rental data by MLS area. The other usual charts and graphs are below. As usual, be mindful of small sample sizes and the fact that when sample sizes in a particular area are small, the data may not reflect an accurate picture.

Austin Rental Market Stats March 2007
Previous Month and Year Comparison
All MLS Areas - Houses Only

 
Feb 2007
Mar 2007
Mar 2006
Yr % Change
# Leased
606
629
653
-3.6%
Avg List Price
$1262
$1312
$1195
9.8%
Median List Price
$1150
$1200
$1100
9%
Avg Leased Price
$1250
$1301
$1182
10%
Med Leased Price
$1150
$1195
$1100
8.6%
Avg Size SQFT
1834
1883
1797
4.9%
Median SQFT
1766
1776
1734
2.4%
Avg $ per SQFT
$0.68
$0.69
$0.66
4.5%
Avg Days on Mkt
61
51
62
-18%
Median Days on Mkt
47
36
50
-28%

Below is the year-to-date summary of all rental in all areas through March 2007 compared to the year before.

Austin Rental Market Jan-Mar 2006/2007 Comparison
All MLS Areas - Houses Only

 
Jan-Mar 2006
Jan-Mar 2007
Yr % Change
# Leased
1836
1883
2.6%
Avg List Price
$1195
$1271
6.4%
Median List Price
$1100
$1175
6.8%
Avg Leased Price
$1183
$1262
6.7%
Med Leased Price
$1100
$1150
4.5%
Avg Size SQFT
1801
1866
3.6%
Median SQFT
1730
1770
2.3%
Avg $ per SQFT
$0.66
$0.68
3.0%
Avg Days on Mkt
56
58
3.6%
Median Days on Mkt
51
45
-12%

Below is the full year comparison of 2005/2006 for all areas.


Austin Rental Market 2005/ 2006 Comparison
All MLS Areas - Houses Only

 
All 2006
All 2005
Yr % Change
# Leased
8042
5949
35%
Avg List Price
$1268
$1249
1.4%
Median List Price
$1150
$1150
0
Avg Leased Price
$1256
$1237
1.4%
Med Leased Price
$1150
$1150
0
Avg Size SQFT
1850
1806
2.4%
Median SQFT
1750
1701
2.9%
Avg $ per SQFT
$0.68
$0.68
0
Avg Days on Mkt
54
60
-10%
Median Days on Mkt
43
48
-10%

Below is the breakout by MLS area. Our MLS Areas changed in January 2007 so there are some new areas. See the map at the bottom of this post. Also, I’ve stopped including areas that are far outside the core of Austin as they have very little activity yet take a lot of time and effort to include.

Austin Rental Market Stats - 2007 Jan-Mar
by MLS Areas- Houses Only

MLS Area
# of Homes Leased
Jan-March
Avg $
Leased Amt
Jan-March
Avg
SQFT

Avg $
Per
SQFT

Avg
Days
Avg Yr Built
2006
2007
%Chg
2006
2007
%Chg
Area 1A
7
8
14%
$1946
$2486
28%
2747
$0.90
84
1979
Area 1B
19
17
-10%
$1869
$2010
8%
1552
$1.30
48
1948
Area 1N
55
32
-42%
$1283
$1417
10%
1894
$0.75
46
1983
Area 2
31
24
-23%
$1073
$1209
13%
1186
$1.02
37
1958
Area 2N
33
35
6%
$1023
$1024
0%
1383
$0.74
60
1973
Area 3
31
32
3%
$1051
$1062
1%
1289
$0.82
59
1967
Area 3E
12
19
42%
$1085
$1078
-1%
1352
$0.79
78
1996
Area 4
32
41
28%
$1267
$1529
21%
1349
$1.13
52
1948
Area 5
35
34
3%
$997
$1016
2%
1302
$0.78
67
1977
Area 5E
19
15
-21%
$1032
$962
-7%
1587
$0.61
55
2002
Area 6
25
19
-24%
$1288
$1529
19%
1471
$1.04
25
1964
Area 7
10
4
-60%
$1502
$1323
-13%
1127
$1.17
18
1951
Area 8E
10
8
-20%
$2146
$2948
37%
2519
$1.17
40
1979
Area 8W
11
11
0%
$2518
$2309
-8%
2581
$0.89
66
1990
Area 9
6
7
-17%
$1190
$1163
-2%
1256
$0.93
66
1976
Area 10N
32
39
22%
$1009
$1132
12%
1428
$0.79
52
1976
Area 10S
100
85
-15%
$1106
$1171
6%
1604
$0.73
46
1989
Area 11
45
33
-12%
$956
$991
4%
1408
$0.70
53
1990
Area CLN
175
152
-13%
$1119
$1138
2%
1929
$0.59
58
2005
Area CLS
75
92
23%
$1297
$1371
6%
2025
$0.67
59
1997
Area DT
-
-
-
-
-
-
-
-
-
-
Area EL
9
8
-11%
$992
$952
-4%
1828
$0.52
72
1997
Area GTE
22
24
9%
$986
$1067
8%
1877
$0.57
46
1999
Area GTW
12
16
33%
$1311
$1389
6%
1999
$0.69
68
1994
Area HD
12
13
8%
$1561
$1771
13%
2067
$0.86
57
1995
Area HH
107
122
14%
$1033
$1108
7%
1826
$0.61
64
2003
Area HU
65
92
41%
$1037
$1033
0%
1914
$0.54
80
2005
Area LN
16
11
-31%
$953
$1104
16%
1861
$0.59
85
1991
Area LS
38
62
63%
$1721
$1901
10%
2214
$0.86
59
1995
Area MA
41
39
-5%
$992
$1066
8%
1776
$0.60
65
2005
Area N
33
27
-18%
$1145
$1192
4%
1708
$0.70
59
1989
Area NE
52
56
8%
$1120
$1162
4%
1930
$0.60
63
1999
Area NW
49
43
12%
$1303
$1275
-2%
2027
$0.63
55
1987
Area PF
148
155
5%
$1128
$1179
5%
1995
$0.59
52
2001
Area RN
14
30
114%
$2071
$1953
-6%
2546
$0.77
95
2001
Area RRE
202
217
7%
$1114
$1177
6%
2013
$0.58
59
2000
Area RRW
69
80
16%
$1225
$1315
7%
2123
$0.62
60
1995
Area SC
11
13
18%
$1143
$1173
3%
2133
$0.55
37
2004
Area SE
20
16
-20%
$1024
$972
-5%
1728
$0.56
52
1994
Area SWE
50
53
6%
$1243
$1297
4%
1792
$0.72
42
2000
Area SWW
46
39
-15%
$1585
$1671
5%
2341
$0.71
42
1996
Area UT
6
6
0%
$1390
$2082
50%
1874
$1.11
58
1933
Area W
11
18
64%
$2090
$1623
-22%
2061
$0.79
63
1989

Below is the historic graph of average and median rents in Austin going back to 1999 through 2006.
Austin Rental Market Historic Graph

Below is the new Austin MLS map (replaced old MLS map Jan 2007). It does not include the outskirt areas and Counties surrounding Austin.
Austin New MLS Map

Posted by Steve
9 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

Tom Cunningham - 9 years ago

Hi Steve,

I notice that rents in Area 5 seem to be holding steady, but are being substantially outpaced by sales price appreciation. Would you say that is typical or indicative of a neighborhood revitalization? There is and has been quite a bit of buzz among my agent partners about this area. I was surprised though, when I saw that rents only increased 2%. Seems like a lot of investor money is going in, but from the look of the rent numbers, either the sales growth is coming more from owner occupied purchases, or investors are taking a cash flow hit and looking for the appreciation pop. What are your thoughts?

Reply
M1EK - 9 years ago

Is there information of this caliber available for condos/apartments too?

Reply
Steve - 9 years ago

Tom,

I don’t work East Austin, but I have a friend who has bought in East Austin and he is approaching it as you say – taking a big cash flow hit with the expectation of rapidly increasing appreciation. So far his bet is paying off.

We like to keep our investors (almost all out-of-towners) in the more “bread-and-butter” suburban areas like Areas 10N, 10S, SW and W. It’s simply a safer gamble in those areas with a more predictable outcome, in my opinion. So far we’ve been right about that.

Steve

Reply
Steve - 9 years ago

> Is there information of this caliber available for condos/apartments too?

M1EK, I only track houses. I don’t know of any other sourse for this type of rental info. I mainly do it just to keep my finger on the pulse of the rental market and for our investor clients.

Steve

Reply
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