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!  

Wednesday, July 12, 2017

Austin Population Age 20-24 Declines

The number of young people aged 20 to 24 in the Austin area was down between 2010 and 2016, the Austin Business Journal reports.

The area lost over 2,000 young people in that time and overall the population of Austin is getting older.  

Travis County lost 15,940 Austinites between the ages of 20 and 24 from 2010-2016.  Williamson County gained 7,160 20-24 year olds during the same time, Hays County added 5,492 more, Bastrop County added 930, and Caldwell County added 355.

This age range now makes up 7 percent of the population in the area, down from 8.5 percent in 2010.  

Austin is in generally losing its young and adding to its population at the other end of the spectrum.  The number of residents under age 24 was down compared to the overall population and Austinites are having less children as well.  The number of children under age five was down .8 percent and the birth rate per year was down from 66 per 1,000 women between the ages of 15 to 50 in 2005 to 41 per 1,000 women in that same age group in 2015.

There was a small increase in the population that is 25 to 44 and a slight decrease in the number of residents between 45 and 54.

The biggest population gain was seen in the 55+ age group, which contributed to making the median age in the region go from 32 to 33.6 from 2010 to 2016.

No matter what your age is, we can help you find an apartment you’ll love!  Give Austin Apartment Specialists a call today at 512-241-1111 to find your dream home anywhere in Austin in no time at all!

Wednesday, July 5, 2017

Plaza Saltillo District Breaks Ground

The 10 acre lot sits between I-35, Comal Street, East 4th Street, and East 5th Street and will be transformed into a huge mixed-use development that aims to become the hub of east Austin.  It will feature 800 residential units (140 of them affordable), 140,000 square feet of office space in an 8 story building, 110,000 square feet of retail, and 1.4 acres dedicated to green space.  Over 1,700 people are forecast to use the space for living or working once it is complete.

The district will be centered around the Plaza Saltillo Capital Metro Station that currently has the Red Line Commuter train and eventually will have more Austin B-cycles, an extension of the Lance Armstrong Bikeway, car2go access, and parking that will be below the development.

The stakeholders in the project are excited to see their vision address two of the biggest problems in Austin: mobility and affordability, after 20 years of planning.

Looking to make your home in East Austin?  Apartment Specialists South Austin can help!  Give us a call today at 512-912-8000 to find your dream apartment that fits your budget.

Wednesday, June 28, 2017

Downtown Site to Become Office Tower

A downtown site at 1108 Nueces Street will become a 22,000 square foot, 5 story office building, the Austin Business Journal reports.  

Currently home to a 2,725 square foot building on a quarter acre lot that was occupied by Attorney Burrell Johnston for many years.  When the property got a rezoning from general office to mixed-use conditional overlay, he sold it to a developer.  

Mid-City Development, which bought the property, plans for the offices to be aimed at attorneys, lobbyists, nonprofits, trade organizations, and others who would want to be near the Capitol.

Mid-City has been behind other projects including the apartments which replaced the Omelettry apartments on Burnet Road and the J.Bouldin condos, which were originally a church.

Looking to make a home in and around downtown Austin?  Austin Apartment Specialists can help you find an apartment anywhere in town.  Give us a call today at 512-241-1111.

Monday, June 26, 2017

Austin's Projected Apartment Inventory

Austin is projected to add a ton of new apartments over the next decade or so, CultureMap Austin reports.

By 2030, we will have 49 percent more apartments, a report by the National Multifamily Housing Council and the National Apartment Association found.  That is 114,000 more units available for renters.

Austin is forecast to add the third most apartments in the nation, after Raleigh, North Carolina and Orlando, Florida.  

In Texas, Dallas is predicted to add 266,296 more units (36%) and Houston is set to add 214,176 more (35 percent).  San Antonio should be adding 54,000 more apartments, increasing its number by 28 percent.

Apartments are in need, especially in the western U.S., Texas, Florida and North Carolina, because of an increase in people who are renting.  

Looking to find an apartment in Austin and can’t wait until 2030?  Don’t worry, Austin Apartment Specialists South Austin can help you navigate Austin’s rental market with ease!  Give us a call today at 512-912-8000.

Thursday, June 15, 2017

Rent Down or Stagnant in Many Areas of Austin

The Austin Business Journal reports on Axiometrics’ findings that rents in Austin, after years of climbing with seemingly no end in sight, are finally leveling off.

The Dallas-based research company found that rent in the Austin market did not increase noticeably last month and occupancy also remained the same as the previous month.  Average rent was $1,209, the same as last May.

While the slowdown in rent increases may be welcome news for renters, it could spell trouble for the large number of new apartments that are under construction in the area.

Job growth has slowed somewhat in the Austin area and many of the new apartments set to be completed soon are in the luxury market with rents beyond the grasp of most Austin workers.  Many of the jobs that are in demand just don’t have high enough salaries to afford the new apartments.

Occupancy rates have remained steady at 95%, which is the same as May of 2016.  

The Austin suburbs of Cedar Park and Leander have seen rents decline by an average of 2.5 percent. A year ago, those areas had the highest increase in rents.  

San Marcos saw rents increase the most in the area, by 3.4 percent.  In far north Central Austin, rent went up by over 3 percent.

Looking to find a new home in the Austin area?  Give Austin Apartment Specialists South a call today at 512-912-8000 to take advantage of the slowdown in rent and find an apartment that fits your budget and lifestyle!  

Monday, June 12, 2017

Where the Rental Boom is Happening

The rental boom is in full effect and a new report from RentCafe breaks down where those apartments are going in, as The Austin Business Journal reports.

The report took a look at the largest 50 cities in the country and then analyzed which neighborhoods in those towns added the most apartments from 2010 to 2016.  

The North Burnet neighborhood of Austin came in at the nineteenth spot, increasing the number of the apartments in the area by 2,739 units in six new communities.  This area includes the very desirable Domain.  

Other Texas cities ranked highly, including Dallas, which had two neighborhoods make the list.  Uptown came in at number 5 and Oak Lawn came in at the seventh spot.  They added 5,839 units and 22 buildings and 4,892 units and seventeen buildings, respectively.

Houston had more neighborhoods on the list than any other city.  Washington Avenue-Memorial Park nabbed the ninth spot and had 3,569 units, Greenway-Upper Kirby was number thirteen with 3,147 units, Memorial built 3,029 units to get the fourteenth spot, and Greater Uptown was right behind in the fifteenth spot with 3,008 units.  San Antonio had one area on the list, the Northwest neighborhood, which came in at number eighteen and had 2,785 units in 12 buildings.  

Long Island City, New York was the leader with 12,533 new units, almost twice that of its nearest competitor, downtown Los Angeles.

Want to find an apartment in the hot North Burnet neighborhood or anywhere else in Austin?  Give Austin Apartment Specialists a call today at 512-241-1111!

Wednesday, June 7, 2017

New Boutique Hotel in East Austin

Another hotel is going up in Austin, this one in East Austin on the site of a former Goodwill store, the Austin Business Journal reports.

Called Arrive, the hotel will have 5 stories and 83 rooms and will encompass 58,600 square feet of hotel including event space, two restaurants, and a coffee shop.  One thing the hotel won’t have is a lobby.  Guests will check in at the bar.  The hotel is expected to cost $17.4 million to build and when completed in Spring 2019, rooms will start at $199 per night.  

The Arrive hotel’s only other outpost is in Palm Springs, California and the Austin location will be designed by Burton Baldridge, an Austin architect.  Other Austin companies involved include Alexa Management, Big Red Dog, Dwg. landscape architects, and EyeLikeDesign.

The hotel will have 140 employees and will also include part of a 100-year-old warehouse that currently occupies the plot of land.  The developers customize their hotels to the surrounding neighborhood and hope to become a destination for locals as well as travelers.

Looking to make your home on the east side?  Give Austin Apartment Specialists South a call today at 512-912-8000 to find the perfect apartment for your lifestyle and budget!  

Tuesday, May 23, 2017

Austin's Sprawl is Growing

Despite all the talk of making Austin more urban, it turns out Austin’s growth is mostly on the outskirts in the suburbs, according to a new study from the New York Times and reported on by The Austin Business Journal.  

Austin’s rate of sprawl was among the highest in the nation and beat out only by San Antonio.  Overall, from 2010-2016, over 80% of the metropolitan areas in the country with one million or more residents have become less dense.

Urbanists have been calling for more housing in the heart of Austin for years, and hoped that CodeNEXT, a rewrite of the land development code in Austin, could have the desired effect.  However, preliminary analysis finds it more difficult to build under the new code than under the old rules.

In general across the nation, the densest metro areas became more dense and the more sprawling ones became even less dense.  The most sprawling metro areas were concentrated in the Sunbelt and included Houston and Oklahoma City right behind Austin and San Antonio.

Looking to get an apartment in the center of the city?  Give Austin Apartment Specialists a call today at 512-241-1111 to find the perfect home anywhere in Austin today!  

Wednesday, May 17, 2017

Austin a Great Place to Start a Career

Austin nabbed the #3 spot on WalletHub’s list of the Best Places to Start a Career, the Austin Business Journal reports.  Salt Lake City and Orlando Florida were the only cities ranked higher than Austin.  

The report looked at opportunities for professional growth as well as quality of life to determine its list.  Austin was number three for population growth and number four for monthly salary relative to cost of living.  Austin’s low unemployment rate also worked in its favor as well as the large number of residents 25 and older with at least a Bachelor’s Degree.

Austin came in at number 32 for “fun-friendliness”, and only 48 for workplace diversity.  

Looking to get your career off the ground in Austin?  Give Austin Apartment Specialists South a call today at 512-912-8000 to find a great apartment to serve as home base!