Austin, Texas Rental Market Trends
Since the start of the pandemic in 2020, Austin’s real estate market has been on the rise. There have been a multitude of factors that have contributed to the rise in costs everywhere, especially in Austin. The data below shows the increase in home value % across the state of Texas. As you can see, our area has been the most affected by the changes happening these last couple of years.
As inflation steadily increases, so does the cost of living for everyone. Landlord's rates on insurance, maintenance and the like continue to go up, and to offset these costs the tenants then pay more in rent to live in the home. Below is a glimpse of the inflation we are currently facing in America.
Rent.com released data relating to apartments here in Austin that show a consistent rise in price and shows that most tenants aren’t escaping an increase over the last couple of years. While this isn’t exactly comparable to single-family homes, it gives a broad picture of how the real estate market has been monetarily affected over the last year. As someone who rents a studio apartment in NW Austin myself, my lease renewal is coming up and I am facing an 11% increase in the rent I pay for my renewal next month.
While this data above speaks specifically to apartments, single-family rental homes are being affected in a similar way. We will continue to implement rental increases for your properties as the market allows to ensure that we are keeping up with the fast-paced changes happening in the housing market and pricing for your home. At the same time we must consider the possibility of a tenant turnover, which is potentially more expensive than the gain from a large rent increase. We look for a balance between the options when considering rent increases.
KXAN also did a great report regarding the home value increases per area here in Austin. Below are segments from the article showing the increases sections of Austin have experienced over the last couple of years.