Comments on: Austin Rental Market Update – July 2008 http://crosslandteam.com/blog/2008/08/23/austin-rental-market-update-july-2008/ Austin Real Estate Blog Wed, 10 Mar 2010 05:20:43 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Cherry http://crosslandteam.com/blog/2008/08/23/austin-rental-market-update-july-2008/comment-page-1/#comment-49425 Cherry Sat, 15 Nov 2008 16:31:29 +0000 http://crosslandteam.com/?p=495#comment-49425 Dave, We currently rent in Lake Point. Have right @ 2000 sq feet., 2 story, 3 bd,1 bonus room (orig.a bdr but HO removed closet so it's not usable as a real bdr.),2 small LR, 2 Eating, etc. beautiful yard and fenced. Fence us old. Home is in good condition, tile all down, hdwds up and in master. Only carpet rooms are aux bdrms. Garage is very small. Storage is tight in kitchen. Though in "good condition"the house is dated, laminate counters, clear ash or milkwash on finishes, white appliances.. My question is this: time is coming up for renewal on lease contract. Owner wants $1900. Though this is what we orginally agreed to, it can't see in this market, it being worth it again. There may be more ammenities for less money in the area. We don't need the space, it's ammenities we like. I have been in and around the remodeling business for years and can refinish many things for them and update lighting, etc but is that a viable solution for many owners or do they just not want to hassel with it? Any insight you can offer is appreciated. cherry Dave,
We currently rent in Lake Point. Have right @ 2000 sq feet., 2 story, 3 bd,1 bonus room (orig.a bdr but HO removed closet so it’s not usable as a real bdr.),2 small LR, 2 Eating, etc. beautiful yard and fenced. Fence us old. Home is in good condition, tile all down, hdwds up and in master. Only carpet rooms are aux bdrms. Garage is very small. Storage is tight in kitchen. Though in “good condition”the house is dated, laminate counters, clear ash or milkwash on finishes, white appliances.. My question is this: time is coming up for renewal on lease contract. Owner wants $1900. Though this is what we orginally agreed to, it can’t see in this market, it being worth it again. There may be more ammenities for less money in the area. We don’t need the space, it’s ammenities we like. I have been in and around the remodeling business for years and can refinish many things for them and update lighting, etc but is that a viable solution for many owners or do they just not want to hassel with it? Any insight you can offer is appreciated.

cherry

]]> By: Steve Crossland http://crosslandteam.com/blog/2008/08/23/austin-rental-market-update-july-2008/comment-page-1/#comment-35434 Steve Crossland Fri, 19 Sep 2008 14:51:31 +0000 http://crosslandteam.com/?p=495#comment-35434 Hi Dave, > This suggests to me that some landlords are trying to increase rents too quickly? Yes, that's right. > Secondly, I notice that the overall supply of rental homes (# rented + # not rented for 07 vs 08) has decreased significantly (about 2.5%) while, I would imagine, area population growth has increased. Apartments are entering the "Hyper Supply" cycle in Austin, meaning there are way more new ones coming online than will be absorbed. That means people who normally would rather rent a house might be attracted by appartment incentives. Mike, DOM doesn't correlate to price range. There is no range that does better than others, in general. That said, once you get higher than $2,000 per month, the pool of renters shrinks, so those can take longer, in general, but not always. Likewise, many lower priced rentals take a long time to rent. The price simply has to match the condition and location or it won't rent. steve Hi Dave,

> This suggests to me that some landlords are trying to increase rents too quickly?

Yes, that’s right.

> Secondly, I notice that the overall supply of rental homes (# rented + # not rented for 07 vs 08) has decreased significantly (about 2.5%) while, I would imagine, area population growth has increased.

Apartments are entering the “Hyper Supply” cycle in Austin, meaning there are way more new ones coming online than will be absorbed. That means people who normally would rather rent a house might be attracted by appartment incentives.

Mike, DOM doesn’t correlate to price range. There is no range that does better than others, in general. That said, once you get higher than $2,000 per month, the pool of renters shrinks, so those can take longer, in general, but not always. Likewise, many lower priced rentals take a long time to rent. The price simply has to match the condition and location or it won’t rent.

steve

]]> By: Mike http://crosslandteam.com/blog/2008/08/23/austin-rental-market-update-july-2008/comment-page-1/#comment-34298 Mike Sun, 14 Sep 2008 20:41:59 +0000 http://crosslandteam.com/?p=495#comment-34298 what price range is showing the lowest DOM for rentals? i've been looking at rentals and they still seem expensive relative to the rental revenue. what price range is showing the lowest DOM for rentals? i’ve been looking at rentals and they still seem expensive relative to the rental revenue.

]]> By: Dave http://crosslandteam.com/blog/2008/08/23/austin-rental-market-update-july-2008/comment-page-1/#comment-29162 Dave Tue, 26 Aug 2008 16:57:57 +0000 http://crosslandteam.com/?p=495#comment-29162 Steve, Thank you for the blog! I really appreciate the information and thoughtful analysis. I have a couple questions/comments regarding the data. I am focusing on the Jan-Jul of 07 vs Jan-Jul of 08 since it is a larger sample size (7mo vs 1mo). First, I find it surprising that the number of "Not Rented" has increased slightly even though the avg DOM and Median DOM have decreased significantly. This suggests to me that some landlords are trying to increase rents too quickly? Secondly, I notice that the overall supply of rental homes (# rented + # not rented for 07 vs 08) has decreased significantly (about 2.5%) while, I would imagine, area population growth has increased. This seems very encouraging from a landlord's point of view. Do you have information on multi-family housing starts and permits? I would imagine that these would be on the rise given the current rental market conditions. -Dave Steve,

Thank you for the blog! I really appreciate the information and thoughtful analysis. I have a couple questions/comments regarding the data. I am focusing on the Jan-Jul of 07 vs Jan-Jul of 08 since it is a larger sample size (7mo vs 1mo). First, I find it surprising that the number of “Not Rented” has increased slightly even though the avg DOM and Median DOM have decreased significantly. This suggests to me that some landlords are trying to increase rents too quickly? Secondly, I notice that the overall supply of rental homes (# rented + # not rented for 07 vs 08) has decreased significantly (about 2.5%) while, I would imagine, area population growth has increased. This seems very encouraging from a landlord’s point of view. Do you have information on multi-family housing starts and permits? I would imagine that these would be on the rise given the current rental market conditions.

-Dave

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