Monday, September 11, 2017

New Apartments In East Austin

A new apartment community has broken ground in East Austin, the Austin Business Journal reports.

The Guthrie is under construction on the former site of Guthrie Lumber near Gonzales and Tillery streets.  The project will have 322 apartments and live-work units as well.  Other amenities will include surface parking (as opposed to a parking garage), a large courtyard, a fenced-in dog park, and a hike-and-bike trail adjacent to the railroad tracks.

The developer, Argyle Residential, has built several multifamily projects in East Austin, including the Lakeshore Pearl, Lakeshore Azul, and Corazon.  

The buildings will be three and four stories in this heavily wooded area near the East 7th street bridge. It’s close to a nearby collection of artist studios called Canopy, the Austin Bouldering Project, Friends & Allies Brewing Company, and urban farms Boggy Creek Farm and Springdale Farm.

The developers hope to be able to offer the apartments in this often overlooked area for much less than what apartments closer to downtown would go for.

Looking to make the move to East Austin?  Apartment Specialists South Austin can help you find the perfect apartment so you can enjoy all that the eastside has to offer! Give us a call today at 512-912-8000!

Wednesday, August 23, 2017

Can Any Generation Afford Rent in Austin?

Rent is on the rise, not just in Austin, but in the US as a whole.  Culturemap Austin reports on what each generation is paying in rent and whether they are able to afford the rent increases.  

The US Census Bureau found that 35% of households nationally are renters and 47% of those households spend more than 30% of their income on rent, which means they are cost-burdened.  

A recent study looked at how that cost burden breaks down across three generations: millennials, Generation X and Baby Boomers.

Roughly two-thirds of millennials are renters and their median rent is $980.  Millennial's median income is $39,900 and this contributes to the fact that 46.5 percent of millennials are paying more 30% of their income on rent.

More Baby Boomers are facing burdens from renting than millennials.  23.3 percent of Baby Boomers are renters and 49.1 percent are paying more than 30% of their income in rent.  Boomer's median income is the lowest of the three generations at $33,000, and their rent is also the lowest at $890 per month.  

38% of Generation X’ers rent and 44 percent of them spend more than 30% of their income on their rent.  Generation X’s median income is $44,470 and their median rent is $1,050.

Austinites that are part of Generation X are doing even better.  Just 38.3 percent of them pay more than 30% of their income in rent.  45.1% of Austin Millennials spend more than 30% of their income for their rent, and 51% of renting Boomers in Austin spend more than they should on rent.

Looking to rent an apartment in Austin?  No matter what generation you belong to, Austin Apartment Specialists can help you find an apartment that fits your budget and lifestyle.  Give us a call today at 512-241-1111!

Thursday, August 17, 2017

The Austin Apartment Market Report

The new Multi-family Trend Report for Austin reveals that developers may be feeling uncertain about building new communities, the Austin Business Journal reports.

Developers are wary of two things: the rewrite of Austin land development code called CodeNEXT and the fact that some Austin City Council members are looking at expanding the Capitol View Corridors, especially in east Austin.

East Austin has just recently become a hotbed of development.  The largest apartment project under construction in the city currently, being built around the Plaza Saltillo MetroRail station, is in East Austin.  An expansion of the Capitol View Corridor would prevent high rises from being built, decreasing the size of projects, increasing the cost, and possibly making them way less feasible.  

In addition, financing for projects is scarce across the country.  Building costs are also increasing nationally, which is even worse in Austin because costs here for new construction is much higher than other places.

Those higher costs are due to higher land prices, delays in approvals by the city for new projects, and “onerous” regulatory rules in the Austin city limits.  

There was an increase in permit applications recently, perhaps due to developers wanting to get their projects approved before any more regulations are passed.  

There are 69 projects with 16,351 units total that are in the permitting stage.  There are 19,000 units in the Austin area under construction and 6,500 are set to be finished by the end of 2017.

After years of older apartments, (called Class C properties), being more popular due to renters preferring cheaper rent to amenities, they have been seeing their occupancy rates fall.  

The most apartments are being built in Cedar Park and Leander, followed by the Highland Mall redevelopment.  

Surprisingly, Bastrop has the highest occupancy rate, despite having lower rents than anywhere else in the area.  

Downtown Austin has the highest rents.

Looking for an apartment anywhere in the Austin area?  We can help you find the perfect place no matter what the market does.  Give Austin Apartment Specialists South Austin a call today at 512-912-8000.

Thursday, August 10, 2017

Austin's Tight Rental Market

One of our agents, John Gutierrez, was recently interviewed by KEYE’s Fred Cantu about the tight Austin apartment market after an apartment fire in the East Riverside area.

The apartment fire took place at University Estates on July 26th and damaged three units, leaving 12 people without a place to live.  Thankfully no one was injured, but it leaves this apartment complex with three less apartments to rent just as the rental market heats up with college students returning for the fall semester.

John spoke to the fact that even though apartment construction is booming in Austin, there is still not enough supply to keep up with demand.  

This problem is particularly pronounced for renters caught with a short time table to find a new place.  These renters may have difficulty finding an apartment that fits their needs.  They are often only able to pick from the apartments others have already looked at and chosen not to rent.  While there are apartments in every neighborhood, the available ones for those with tight time constraints may may not fit apartment hunters’ budgets.

Frightened of the Austin apartment market?  Don’t be!  With one of Austin Apartment Specialists’ expert apartment locators on your side, we will find you a new home that fits all your criteria. Give us a call today at 512-241-1111.

Wednesday, July 26, 2017

Austin Housing Market Mid-Year Report

Culturemap Austin reports Austin home sales slowed down in the first half of the year, the new mid-year sales report from the Austin Board of Realtors reveals.

Sales in the Austin-Round Rock area only went up by 2.8 percent between January and June of this year.  The median home price did increase, though, by 6.4 percent to $300,000.

June home sales were up 4.4 percent over last June.  3,415 homes sold in the area last month.  The Median home price was up to $314,000, an increase of 6.6 percent.

In the city of Austin, home sales were up 4.3 percent over last year in the first half of the year, for a total of 4,680 homes sold.  The median price in Austin was $365,000, an increase of 7.7 percent from last year and over $26,000 more expensive than during the same time last year.

Last month, 1,015 homes sold in Austin, 2.1 percent more than last year.  However, the median home price was up to $393,500, a 13.2 percent increase from last June.

Avoid Austin’s crazy home buying market and rent!  Austin Apartment Specialists South can help!  Give us a call today at 512-912-8000 for help finding the perfect apartment pain free!  

Monday, July 24, 2017

Forbes Says Austin's Housing Market is Overvalued

According to a new report by Forbes, Austin’s housing market is the 2nd most overvalued in the country, KXAN reports.  San Antonio was ranked the most overvalued market in the US.

Forbes said Austin’s market is 17 percent overvalued. The median home price in Austin is $286,400.  San Antonio’s median home price is $202,600, which Forbes said was 18.6 percent overvalued.

Forbes looked at a city’s nominal income growth, population growth, unemployment, change in rental prices and change in home prices to determine its ratings.  

Home builders are putting new homes mostly in Northwest and Southeast Austin and home builders share the concern that the market is overvalued.  Homes are getting more and more expensive to build and many buyers are having to spend 30 to 40 percent of their income on their home costs.  Most experts recommend putting 25 percent of income towards home costs.

In the last ten years, home prices have skyrocketing in Austin.  In 2006, the median price of a home here was $182,000.  In 2012, prices started climbing and the current median home price is almost $100,000 more than it was in 2006.

Looking to avoid Austin’s scary home buying market and rent?  Austin Apartment Specialists can help!  Give us a call today at 512-241-1111 to find your dream apartment today!

Tuesday, July 18, 2017

Austin's Retail Growth

Austin’s retail boom continues, the Austin American Statesman reports, with the best retail occupancy rate in the country.

The current retail occupancy rate in Austin is 96 percent.  Some stores have closed recently, including Chair King in the Mueller development, but those locations are quickly snapped up by other companies looking for space.

Last year, Central Texas saw an additional 1.1 million square feet of space for retail and is on target to add 890,000 square feet more in 2017.

Some of the biggest expansions are in the grocery market.  Grocery stores often serve as anchors for new developments and attract other retailers.

While HEB is the biggest grocer in the area, Randall’s also has plans to open a store in Georgetown. 99 Ranch Market, an Asian grocer, will bring its first store to Austin at North Lamar and Airport Boulevard.  Target is brining a small version of their stores to Dobie mall by the UT campus, and Aldi and Lidl, a German discount grocery store, is planning to come to Pflugerville and Kyle as well.  

The demand for space has led to an increase in rent.  Increased property taxes also force owners to pass those costs onto tenants in the form of higher rent.

Despite a lot of restaurants closing in the city, many due to the increase in rent, more food purveyors are waiting in the wings to take over those spaces.  They are taking advantage of the fact that the previous tenants already did much of the work on building out spaces so the new restaurant can save on start-up costs.

The hottest neighborhoods for retail in Austin are Mueller, The Domain, and downtown, particularly near the new central library on Cesar Chavez.  East Austin’s explosive growth, on the other hand, seems to be slowing down.

Watch for more growth in the city, especially as Plaza Saltillo and the former Brackenridge tract are developed.

Looking to rent an apartment near retail?  Apartment Specialists South Austin can help!  Give us a call today at 512-912-8000 to find your dream home quickly!