Austin Rental Market – April Update

The number of homes leased in Austin this April 2007 dropped quite a bit from April 2006, down 17% from 671 homes leased last year to 554 homes leased in April of this year. I’m not sure why that is, but I’ll talk to some property managers and see if they are having more renewals this year. That’s possible with mortgage standards tightening up, which will cause more renters to remain renters. The average rents are up 5% though, breaking through the $1300 mark to $1310 per month, up from $1249/mo. average last April. The year-to-date rental rates are looking similarly healthy compared to Jan-Apr last year. Days on market are down to 48 average and 36 median, which means half of the homes leased through the Austin MLS rent in less than 36 days.

This month I’ve included a new chart with rental breakdown/comparison by cities, including Austin, Round Rock, Buda/Kyle, Cedar Park, Leander, and Hutto. More on that below.

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

 
Mar 2007
Apr 2007
Apr 2006
Yr % Change
# Leased
629
554
671
-17%
Avg List Price
$1312
$1320
$1263
4.5%
Median List Price
$1200
$1195
$1150
3.9%
Avg Leased Price
$1301
$1310
$1249
4.9%
Med Leased Price
$1195
$1195
$1145
4.4%
Avg Size SQFT
1883
1882
1850
1.7%
Median SQFT
1776
1784
1768
0.9%
Avg $ per SQFT
$0.69
$0.70
$0.71
-1.4%
Avg Days on Mkt
51
48
56
-14%
Median Days on Mkt
36
36
45
-20%

Below is a year-to-date chart of 2006/2007 Jan-Apr homes that have rented in and around Austin.

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

 
Jan-Apr 2006
Jan-Apr 2007
Yr % Change
# Leased
2508
2463
-1.8%
Avg List Price
$1213
$1283
5.8%
Median List Price
$1100
$1195
8.6%
Avg Leased Price
$1201
$1274
6.1%
Med Leased Price
$1100
$1175
6.8%
Avg Size SQFT
1814
1869
3.0%
Median SQFT
1743
1771
1.6%
Avg $ per SQFT
$0.66
$0.68
3.0%
Avg Days on Mkt
56
55
-1.8%
Median Days on Mkt
49
42
-14%

Below is a breakdown of rental data by city. Note the much stronger averages across the board in Austin. This is why we like Austin compared to other areas. Yes, the homes are more expensive in Austin, so the cash flow may not look as good on a spreadsheet compared to Round Rock or Hutto. Yes, many of the homes in Austin are older compared to the other areas. But good homes in established neighborhoods in Austin rent faster and attract a better quality renter. In the long run, I think that’s the most important factor when looking at an investment for long term hold – the ability to attract a quality renter and keep the property occupied.

I sound like a broken record each time I say this, but your spreadsheet goes out the window with that first 90 day vacancy and/or that marginal tenant that you or your property manager let in because you were desperate, and who then tore your place up.

Austin Rental Market Stats Jan-April 2007
Breakdown by City
Houses Only

Austin
Round Rock
Buda/Kyle
Cedar Park
Leander
Hutto
# Leased
1109
396
153
154
128
97
Avg List Price
$1382
$1199
$1101
$1296
$1113
$1044
Median List Price
$1225
$1150
$1095
$1250
$1095
$1025
Avg Leased
$1372
$1191
$1099
$1288
$1112
$1035
Med Leased
$1200
$1150
$1095
$1250
$1095
$1000
Avg Size SQFT
1766
2015
1835
2090
1834
1884
Median SQFT
1638
1870
1784
2088
1815
1856
Avg $ per SQFT
$0.84
$0.59
$0.62
$0.62
$0.61
$0.55
Avg Days on Mkt
52
57
63
58
55
77
Med Days Mkt
38
43
49
42
46
69
Avg Year Built
1985
1999
2004
1998
2000
2005
MedYear Built
1988
2001
2004
2000
2003
2005

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

Leon Fu - 9 years ago

Hi Steve,

Thanks for all the data. I’m a bit confused though. There was a big drop in the number of rentals, but on average they rented for higher prices and they rented faster than last year. The only logical explaination I can think of is that there are fewer homes available for rent. I know from your previous posts that for a many years, there was rapid growth in the number of homes rented, but the rents stayed the same or kept falling. Now we are seeing a drop in the number of homes rented, but rent rates are rising and days in the market are falling. Any thoughts on this?

Reply
Steve - 9 years ago

Hi Leon,

One Property Manager I talked to told me he is indeed seeing more tenants renewing their leases. He thinks that’s the reason for fewer rentals. He’s also raising rents on renewals in most instances without complaint. So his experience fits right in with the data.

Steve

Reply
Grant - 8 years ago

Right now, I’m hearing that South Austin and just south of downtown are doing really well leasing. The outer areas such as Cedar Park/Leander and Round Rock have slowed down somewhat.

Thanks,
Grant

Reply
Billy - 8 years ago

Grant,

I am moving to South Austin in the next 2 months. Have you seen prices go up much? Of course, this is good for the landlords, but it is alway a bad thing for the renters.

Billy

Reply
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