Austin Rents On Their Way UP

March 24, 2008

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It’s true.

What I am seeing, Rents, from neighborhood to neighborhood in Austin, Cedar Park, Pflugerville, and Round Rock in North and Northwest Austin seem to be heading upwards for the first time in a long time. Single family home rates have been stuck in a paradigm for several years, forcing property investors to eat a large chunk of the mortgage payment- but giving renters easy rent. Not anymore. Demand is up for single family homes causing days on the market to curb sharply all over.

What! Why?

Renters should expect increases in rent at renewal and initial application because the supply side is just not there. Due to the slowdown in new construction, and investments over the past 6-8 months the reaction is high demand for what little is left.

Outlook…

There are several factors over the next few months that will tell if this is an anomaly or if higher rental prices are here to stay. My guess is rents are not coming down anytime in the near future. My suggestion is to either buy, or sign longer leases at your lower rate. With interest rates as low as they are and softening lines of credit for first home buyers this may be your best opportunity of the year.

I’ll keep you posted!

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Hen Pecked by Benn, Single Pointe CEO | Filed Under Austin News, Austin Real Estate Blog 

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2 Responses to “Austin Rents On Their Way UP”

  1. Chris on March 24th, 2008 9:37 pm

    I should have realized what was going on. We looked to rent in avery ranch last year and rent was about 1300, this year, anything decent is 1500. It seems unfair, but I guess everything is going up, rent should too.

  2. Benn, Single Pointe CEO on March 24th, 2008 9:41 pm

    Chris, thanks for commenting.

    Absolutely, rents in Avery Ranch last week were averaging at around $1425 and the more hotter real estate there was closer to $1500. The great news is a mortgage payment right now (in Avery) would be higher so the ratio is still in the renters favor but I’m not seeing that everywhere.

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