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The Crossland Team
Sylvia Crossland, Broker Steve Crossland, MPM (512) 301-5811 |
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Austin Rental Market Update - March 2008 and YTD
April 20, 2008
Homes in Austin are renting for 8% more than last year, on average. Average rent price for homes across the Austin Metro area was $1401 per month for March 2008 compared to $1295/mo the year before. The Median leased price remained about the same at $1200. Homes are renting fast this March. The average days on market was down to 37 days from 42 last year. The Median days on market was 26 compared to 28 days last year, which means half of the rental homes in Austin that leased through the Austin MLS rented in 26 days or less, and half took more than 26 days to rent.
The average rental price per sqaure foot is up almost 6% to $0.73 compared to $0.69 last year. The average size rental home in Austin was 1915 sqft and the median size was 1794 square feet.
The number of homes rented was down about 10%. More renters are renewing leases as fewer can qualify for home purchases than in the past several years. This is good for landlords. Note that our average rental rate of $1401/mo for March 2008 is still lower that the average of $1497/mo that renters paid in the year 2000 and the $1524/mo renters paid in 2001 before Austin rents tumbled for four years and bottomed out at $1235/mo in 2005. So we’re still trying to climb back to where we were 6 or 7 years ago.
Below is the data chart for March Rentals in Austin. Further below is a year to date chart, breakdown by city, and a historical graph of rental rates in Austin from 1999 through the end of March 2008. As usual, comments and questions are welcome.
|
Feb 2008 |
Mar 2008 |
Mar 2007 |
Yr % Change
|
|
| # Leased | 563 | 594 | 659 | -9.86% |
| Avg List Price | $1,370 | $1,412 | $1,305 | 8.20% |
| Median List Price | $1,200 | $1,250 | $1,200 | 4.17% |
| Avg Leased Price | $1,362 | $1,401 | $1,295 | 8.19% |
| Med Leased Price | $1,200 | $1,200 | $1,195 | 0.42% |
| Avg Size SQFT | 1901 | 1915 | 1874 | 2.19% |
| Median SQFT | 1755 | 1794 | 1769 | 1.41% |
| Avg $ per SQFT | $0.72 | $0.73 | $0.69 | 5.87% |
| Avg Days on Mkt | 39 | 37 | 42 | -11.90% |
| Median Days on Mkt | 27 | 26 | 28 | -7.14% |
Below is the Year to Date Comparison chart.
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Austin Rental Market Update - 2007-2006 Comparison
March 13, 2008
For 2007, the Austin Rental Market continued to see gains in average and median rental rates for single family homes. But we still lag behind the rental rates landlords enjoyed 6 and 7 years earlier, if you can believe that. The graph below shows where we were in 1999 through 2007. You can see the huge 4-year plunge rental rates took from 2001 until we started back up in 2006 and 2007.
The average rental rate for a single family home in Austin during 2007 was $1344 per month, up 7% from $1256 in 2006. The average sized rental home was 1883 square feet. The median rental rate for 2007 was $1200, up 4.3% from $1150 in 2006. The average rental price per square foot was up 4.4% to $0.71 in 2007. Average days on market improved to 45 days from 54 days in 2006. And median days on market fell to 33 days in 2007 from 43 days in 2006.
All said, another good year heading in the right direction for Austin landlords. See the graph below.
Below is a chart breaking down the 2007/2006 metrics.
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Austin Rental Market Update - thru Oct 2007
November 24, 2007
The Austin Rental Market keeps chugging along. Not much new to say for the stats report this month as the steady climb in rents continues. Average rental rate is up 5.7% from a year ago, to $1354 (though down from last month due to our seasonal shift). But remember, average rents in Austin are still not yet back to the year 2000 rates. Stats are below. I did a breakout this month by city just to include something new. As usual, questions and comments are welcome. Sales stats will be coming next.
|
Sep 2007 |
Oct 2007 |
Oct 2006 |
Yr % Change
|
|
| # Leased |
570
|
571
|
645
|
-12%
|
| Avg List Price |
$1368
|
$1354
|
$1281
|
5.7%
|
| Median List Price |
$1207
|
$1250
|
$1150
|
8.7%
|
| Avg Leased Price |
$1354
|
$1337
|
$1267
|
5.5%
|
| Med Leased Price |
$1200
|
$1245
|
$1150
|
8.0%
|
| Avg Size SQFT |
1837
|
1927
|
1882
|
2.4%
|
| Median SQFT |
1734
|
1829
|
1784
|
2.5%
|
| Avg $ per SQFT |
$0.74
|
$0.69
|
$0.67
|
3.0%
|
| Avg Days on Mkt |
43
|
40
|
52
|
-23%
|
| Median Days on Mkt |
31
|
32
|
44
|
-27%
|
Below is a previous month and Year-to-Date comparison.
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Austin Rental Market Update - September 2007
October 29, 2007
The rental market in Austin remains strong, helped further by the fact that there are in fact some qualified buyers who are electing to rent instead of buy because they fear that there is an Austin Real Estate bubble, and they don’t want to buy into that bubble. I’m not going to go into several paragraphs of “there isn’t a bubble” commentary, but there is not a real estate bubble in Austin TX.
To those buyers voluntarily taking yourselves out of the purchase market, the rest of the buyers thank you, as do all of us who own rental property. You’re helping create better purchase opportunities for the buyers who are smart enough to recognize this as a great time to buy a home in Austin, and you’re creating more demand for rental homes, which helps drives up rent prices. If you are qualified and ready to buy a home in Austin, and you know you will live there at least 2 years, there is absolutely no reason not to purchase a home in Austin TX today.
For September in Austin, average rents are up 6.7% over Sept 2006, from $1269/mo. a year ago to $1354 this September. Like the sales market, our number of homes rented is down over a year ago. The average and median days on market for rental homes is substantially better than a year ago at 43 days average, and 31 days median. This means half of all rental homes leased through the Austin MLS found a tenant in 31 days or less. Not bad.
September stats and year to date stats are below. I haven’t had time to do my area breakdowns, so I’m posting what I can and will try to catch up on the quarterly area breakdowns later this week.
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Austin Rental Market Update - August 2007
September 30, 2007
The Austin rental market saw rising rental rates again for August 2007, up 2.4% over last year to $1384 per month. Not a rise worth celebrating, but a gain nonetheless. The number of homes rented fell 5% though, from 806 last August to 765 this August. This may be due to fewer renters moving to new rentals in Austin (churn), but I thought some of the first time buyers who are now unable to obtain home loans would have helped create higher demand. It may be that the market already absorbed those buyers over the past 6 years and there are simply none remaining.
Below you’ll find a month by month chart, a year to date, and a history of rental rates in Austin going back to 1999. Next month I’ll provide a quarterly breakdown by area through September 2007. As usual, post any comments or questions and I’ll be happy to answer.
|
July 2007
|
Aug 2007 |
Aug 2006 |
Yr % Change
|
|
| # Leased |
791
|
765
|
806
|
-5%
|
| Avg List Price |
$1385
|
$1394
|
$1364
|
2.2%
|
| Median List Price |
$1250
|
$1225
|
$1200
|
2.1%
|
| Avg Leased Price |
$1378
|
$1384
|
$1352
|
2.4%
|
| Med Leased Price |
$1225
|
$1225
|
$1200
|
2.1%
|
| Avg Size SQFT |
1848
|
1871
|
1882
|
-0.6%
|
| Median SQFT |
1761
|
1766
|
1751
|
0.9%
|
| Avg $ per SQFT |
$0.75
|
$0.74
|
$0.72
|
2.7%
|
| Avg Days on Mkt |
37
|
37
|
44
|
-16%
|
| Median Days on Mkt |
29
|
31
|
34
|
8.9%
|
Below is the Year to date breakdown.
Read more
Austin Rental Market - July 2007 stats update
August 26, 2007
The Austin rental market continues to see rising rents. The mortgage problems in the sub-prime mortgage loan market are helping rental markets in all parts of the U.S., as renters who should not be qualified to purchase a home are indeed remaining renters, as they should. Austin has the added benefit of a strong job market, which is bringing new renters into the Austin area. These newcomers are often qualified to buy a home but do not want to commit to a home purchase immediately, so they rent for a year or two while deciding where they want to buy, and making sure the new job works out. Thus, there continues to be an influx of quality renters.
|
June 2007
|
July 2007
|
July 2006
|
Yr % Change
|
|
| # Leased |
750
|
791
|
832
|
-4.9%
|
| Avg List Price |
$1370
|
$1385
|
$1324
|
4.6%
|
| Median List Price |
$1250
|
$1250
|
$1200
|
4.2%
|
| Avg Leased Price |
$1364
|
$1378
|
$1313
|
5.0%
|
| Med Leased Price |
$1250
|
$1225
|
$1200
|
2.1%
|
| Avg Size SQFT |
1897
|
1848
|
1904
|
-2.9%
|
| Median SQFT |
1810
|
1761
|
1799
|
-2.1%
|
| Avg $ per SQFT |
$0.72
|
$0.75
|
$0.69
|
16%
|
| Avg Days on Mkt |
41
|
37
|
47
|
-21%
|
| Median Days on Mkt |
28
|
29
|
36
|
-19%
|
Stats Summary:
Average rents are up 5% this July over July 2006.
Average Days on Market for July 2007 was 37 days, which is a 21% decrease from July 2006.
Median Days on market is 29 days for July, which is a 19% decrease over last year. This means more than half of all homes leased through the Austin MLS rent in 29 days or less. This marks a return to a good landlord’s market, though there are still plenty of homes that do not rent quickly, either due to overpricing, poor condition, poor marketing by the agent, or all three.
Below is a breakdown of stats for YTD 2007 compared to the same period 2006.
Austin Rental Market Update - June 2007 and Mid-year Stats
July 29, 2007
Rents continue increasing overall in Austin, as the number of homes rented drops. The average leased price of a home in Austin for June 2007 is $1364 per month, up 7.5% from $1269 in June of 2006. Average days-on-market for homes rented in June 2007 was 41 days. The median days on market was 28 days, which means half of all homes listed in the Austin MLS for rent were leased in less than 28 days. We are clearly moving back into a solid Landlord’s market.
|
May 2007
|
June 2007
|
June 2006
|
Yr % Change
|
|
| # Leased |
650
|
750
|
789
|
-4.9%
|
| Avg List Price |
$1384
|
$1370
|
$1279
|
7.1%
|
| Median List Price |
$1250
|
$1250
|
$1195
|
4.6%
|
| Avg Leased Price |
$1377
|
$1364
|
$1269
|
7.5%
|
| Med Leased Price |
$1210
|
$1250
|
$1150
|
8.7%
|
| Avg Size SQFT |
1910
|
1897
|
1837
|
3.3%
|
| Median SQFT |
1817
|
1810
|
1745
|
3.7%
|
| Avg $ per SQFT |
$0.72
|
$0.72
|
$0.73
|
-1.4%
|
| Avg Days on Mkt |
40
|
41
|
46
|
-11%
|
| Median Days on Mkt |
36
|
28
|
37
|
-24%
|
Year-to-Date, average 2007 rents in Austin are up 6.5% from the same 6 month Jan-Jun period of 2006 last year. The YTD average leased price is $1309 per month, up from $1229 last year. We must be mindful however that summer rental activity is stronger, thus as we move through July and August and into the slower Fall/Winter month, the YTD average may drop some. But things are certainly looking good for landlords and property managers in Austin.
Read more
Austin Rental Market - May 2007 Update Stats
June 16, 2007
The average rental price in Austin is up 7.6% from May of last year to $1377. The Median rental rate is up 3% to $1175/mo. Days on Market is down 27% and number of homes leased is down 15%. In short, our Austin rental market for single family homes continues to chug along very well, with rents steadily rising. The drop in number of homes leased is, according to property managers I know, largely due to more renters renewing their lease instead of moving or buying a home.
When talking with investors about the Austin Rental Market, and putting into context where we are now compared to where we’ve been, I’ll often say something like “Austin’s average rental rates are still below the 1999 average”. As of April and May, rental rates are above the $1306 mark set in 1999. (see chart below). If we end the year with an average rental rate above $1306/mo., I’ll have to start saying “since 2000″ instead of 1999. It’s about time.
I don’t have the MLS area breakdowns this month as I’m swamped and don’t have the time to do those. But I’ll have a mid-year breakdown next month.
|
Apr 2007
|
May 2007
|
May 2006
|
Yr % Change
|
|
| # Leased |
554
|
650
|
749
|
-15%
|
| Avg List Price |
$1320
|
$1384
|
$1287
|
7.5%
|
| Median List Price |
$1195
|
$1250
|
$1195
|
4.6%
|
| Avg Leased Price |
$1310
|
$1377
|
$1279
|
7.6%
|
| Med Leased Price |
$1195
|
$1210
|
$1175
|
3.0%
|
| Avg Size SQFT |
1882
|
1910
|
1836
|
4.0%
|
| Median SQFT |
1784
|
1817
|
1766
|
2.9%
|
| Avg $ per SQFT |
$0.70
|
$0.72
|
$0.70
|
2.9%
|
| Avg Days on Mkt |
48
|
40
|
55
|
-27%
|
| Median Days on Mkt |
36
|
36
|
45
|
-20%
|
Below is the Year to Date comparisons for Jan-May 2006/2007. Austin single family homes only.
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Austin Rental Market - April Update
May 10, 2007
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.
|
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.
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Austin Rental Market Update - March 2007
April 9, 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.
|
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.
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