Average and median rents for homes in Austin continued to rise in 2010, but still remain lower then the peak in 2001. Hard to believe, but rents in Austin are still lower than 10 years ago.
As indicated by the graph above, rental rates in Austin topped out in 2001 with the Tech bubble and a surge in growth in Austin and companies hired and expanded. Immediately thereafter, when the Tech bubble popped and 9/11 followed, Austin lost jobs, homes were hard to sell, and rental demand decreased as the inventory of available homes increased.
Below is a chart of the year over year stats comparing the 2010 Austin rental market to 2009.
|Austin Rental Market 2010 YTD Summary|
|Homes only (no condos, duplexes, etc) – Data from Austin MLS|
|Jan-Dec 10||Jan-Dec 09||Yr % Change|
|Avg $ SQFT||$0.76||$0.73||3.98%|
|Not Sold %||15.42%||20.77%||-25.76%|
The above chart adds a bit more detail to the 2009/2010 increase in rental values. The number of homes rented increased 4.33%, Average rent price was up 2%, median rent value increased about 3%.
All of the stats in fact were positive, with rental homes in Austin leasing faster and for higher rents than the year prior. This trend should continue over into the near future as more renters move to Austin and fewer investors buy homes.