Austin Rental Market Update – August 2009
The Austin rental market continues to be strong.Average and monthly rents continue to rise. Days on market is low. But, even with recent gains in prices, we are nearing the end of a decade in which rental prices for landlords will have remained virtually flat. Let’s check the historic graph below before we get into current figures.
If we draw a straight line from 1999 to now, and you own the average rental home, and in 1999 you assumed a 3% per year increase in rents over time, that increase didn’t happen, but your property taxes, insurance and maintenance expenses sure did go up a lot. What we see above isn’t good from a landlord standpoint, but if you’re a renter, you’ve had a nice 10 year run of good rental values in Austin. At present, our rental values are still below where they were in the dotcom boom era of 2000 and 2001.
And if it’s any consolation, had you invested your real estate money in the stock market in 1999, you’d be a whole lot worse off than a decade of flat rents. At least real estate values have come up. We’ll look at that in a minute.
Currently in Austin, average rents for single family homes are about $1,500 per month and the median rents are $1295/mo. See the chart below.
|Austin Real Estate Rental Market Update August 2009|
|Houses only (condos, duplexes, etc. not included) compiled from Austin MLS data|
|July 2009||Aug 2009||Aug 2008||Yr % Change|
|Avg $ SQFT||$0.76||$0.76||$0.76||0.28%|
|Not Rented %||13.08%||16.13%||18.73%||-13.84%|
For the most part, we’re not having any trouble getting our homes rented. Occasionally, just as it is in the sales market, we’ll have a slow mover, but not too often.