The markets in Austin & the Central Texas area are still going strong. We were not sure how COVID-19 would affect the housing market and more importantly the local economy, but we keep getting surprised.
The rental market has slowed as we enter the tail end of the year, but we believe it to be seasonal. We are still leasing homes every week and our economy is strong in Central Texas. In September, the Texas Workforce Commission (TWC) stated that our unemployment rate for Texas is 6.8 percent and 5.5 in the Austin-Round Rock MSA. “Texas is below the national seasonally adjusted rate of 8.4 percent" and the rate has been slowly dropping and is now the lowest since March 2020.
The market for homes for sale has not slowed down. The demand for housing in greater Austin is fueled greatly because we don't have the inventory to meet the demands of everyone trying to move to the area. Affordable houses are being sold well over asking prices after a bidding war and often without inspection periods. Our brokerage and sister company, Central Metro Realty, has had consecutive record months since July. People are still flocking to the Austin area from states like New Jersey, New York, Arizona and California where the cost of living is higher than here, at least for now.
Many housing experts and economists point to the virus as a potential reason for the surge in the suburbs for both sales and leasing. People are looking for more space, have less commuting to do and this has driven them to suburbs in droves. They are ditching their high-end, expensive apartments and seeking single-family homes for accommodation which is driving an increase in rents for single-family rentals across the country.
All the while, we are pleased that people are paying their rent. Less than 5% of our tenants are in delinquency status, which is significantly higher than pre-pandemic levels, yet still indicative of a relatively strong residential rental and job market. This is in spite of the ban on evictions being in place until the end of the year.
We are fortunate to be in a market that is able to experience growth like Austin, as the influx of people to the city continues to drive the strong market. With Tesla bringing their new factory to the area and Apple building their new campus right up here by Stone Oak's offices, we feel strongly about the Austin housing market going forward.
If you have any further questions about the leasing market or property management services for Austin rental homes, please don't hesitate to contact our team at Stone Oak Property Management.
Stone Oak Property Management