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Market News and Trends

Rents rising in Austin

For market watchers in Austin and Central Texas this trend has been visible, but the Austin American-Statesman made it public information over the weekend:

Apartment market rebound good news for landlords, but tenants face higher rents

Average apartment occupancy is back to pre-recession levels in the Austin area, pushing rental prices to all-time hights, and that is adding strength to lease rates for other types of residential property as well:

AMLI Residential CEO Gregory Mutz said, “There are a number of positive forces at work — job growth, household formations, positive demographic trends, a greater propensity to rent versus buy, and the fact that there are currently very few new apartment units being delivered as new supply this year.” 

I still see plenty of demand for home purchases rather than leasing, but if a job brings a family to Austin who is unable to sell their home elsewhere, then renting here is usually the first alternative.  In addition, there is no doubt that some people remain nervous about what they have read and heard about home ownership over the past few years.  Those factors, and a continuing shortage of new rental properties, will keep this supply-demand situation working in favor of landlords for some time to come.

As always, some hyperlocal market segments are feeling this strength while others are not.  Indeed, some neighborhoods remain extremely difficult to lease due to a variety of factors.  Where to invest in Austin real estate?, posted a few days ago, summarized investment potential in different parts of Austin.  Since I rarely work with apartments I focused that analysis on single family rental properties, but the comparative strength and weakness of those MLS regions is valid.

Thinking of investing in Austin and Central Texas?  This is good news.  You still need to make informed decisions about location, and be clear about your investment objectives, but there is still time in this market cycle to get on board.

About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

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