The Austin-American Statesman is reporting that average Austin rents in the metro area have reached an all-time high this summer. As of June 2019, the average rent for all apartment sizes is now $1,350 which represents an increase of 5.6 percent since the same time in 2018. According to the story, Austin rents have risen 4.8 percent just since January 2019. When you break it down, one-bedroom apartments are now renting for $1,179 per month while two-bedroom apartments are renting for $1,489 per month at the current market-rate. Occupancy rates are high too with the latest report showing an average of 94 percent across the board. Industry experts are attributing the high demand for apartments to the high cost of buying a home and tight housing supply coupled with population growth due to low unemployment rates that attracting thousands of people moving here from other states, particularly California. And with California housing costs well above what the Austin-area has to offer, rent here seems like a bargain.
During the 12 months ending in June, the Austin area added about 9,800 new apartment units, growing the region’s supply by about 4.5%. Demand has remained above supply, as renters leased a net total of 10,206 units in those 12 months. According to Capitol Market Research, another 25,000 apartments are forecasted to be built between now and 2021.
With so much demand and people moving here willing and able to pay the high prices, the outlook for those already living here and unable to keep pace with rising rents, the need for affordable housing will continue to outpace supply at an alarming pace.