Austin Rental Market Update – Oct 2009
The rental market for houses in Austin is still slowly improving, climbing out of the huge dip we took after the tech bust and 9/11. For October 2009, average and median rents are both up about 1%, but homes are taking longer to rent, averaging 42 days on market compared to 38 a year ago in October.
This is a macro view though. In talking with other property managers in Austin, it’s not uncommon for some homes to be renting for the same or less than a year earlier, while others can do a bit better. It’s really a function of the number of competing homes and the location of the property. It took 45 days for me to rent a central Austin home in 78704 recently and we had to take $50/mo. less than a year earlier. Had I accepted large dogs and/or poor credit, it would have rented right away, so rental criteria is also a determining factor in how long it takes and the amount attainable.
October stats are listed in the chart below.
|Austin Real Estate Rental Market Update October 2009|
|Houses only (condos, duplexes, etc. not included) compiled from Austin MLS data|
|Sep 2009||Oct 2009||Oct 2008||Yr % Change|
|Avg $ SQFT||$0.72||$0.72||$0.74||-2.56%|
|Not Rented %||23.48%||20.39%||27.77%||-26.59%|
Let’s have a look at 2009 year to date through October, compared to the same period in 2008.
|Austin Rental Market YTD Update – Jan-Oct 2009|
|Houses only (no condos, duplexes, etc) – Data from Austin MLS|
|Jan-Oct 09||Jan-Oct 08||Yr % Change|
|Avg $ SQFT||$0.74||$0.74||-1.09%|
|Not Sold %||20%||19%||5.43%|
For the year, the median has dropped a bit while the average remains up about 1%. Remember though, 1% is only $14/mo for the average rental home in Austin. That’s about 1/3 of an average day’s rent, so nothing to get excited about. Days on market in 2009 are much higher than 2008 overall, which drives rents down as owners and property managers drop rents seeking faster rental. For $1,250 rental, it only has to remain vacant and extra 2 weeks to lose all of the additional rent gained over a faster $1195/mo. attempt, so landlords are always trying to find the market rent that will get it rented in an acceptable amount of time.
Finally, below the the history of our rental market average and median prices for rental homes in Austin. We’re still below our 200/2001 peaks rental rates.
As usual, questions, comments and observations are welcome.