Monday, May 21, 2018

Amazon HQ2 Could Cause Rents in Austin to Climb




If Amazon HQ2 comes to Austin, rents could climb, according to a new study.

Culturemap Austin reports that a study bo CoStar Group predicts rents in Austin will go up an additional $103 over the next 10 years if Amazon decides to call ATX home. 

If Amazon decides to put its new headquarters somewhere else, average monthly rent will go from $1,206 in 2018 to $1,450 in 2028, which is a 20.2 percent increase. With the addition of Amazon, rent would go from $1,206 to $1,553, which is is a 28.8 percent increase. The difference amounts to $103 and would affect apartments of any size.

The forecast increase in apartment rent for Austin is the 4th highest of the 16 cities being considered. Raleigh, North Carolina would see the highest increase in rent, then Nashville, Tennessee, and Columbus, Ohio.

Dallas-Fort Worth is the only other Texas city on the short list and they are forecast to see a small increase in rent. If HQ doesn’t come to DFW, rent will go up $14.8 percent and with Amazon they will go up 17 percent, or $26 more a month than without HQ2. 

CoStar’s analytics director says that because Austin is continuing to build a lot of apartments, Amazon’s influence on the rental market will be minimal. The additional demand can easily be covered with our apartment stock. Also, Austin’s cost of housing is relatively inexpensive so he expects many employees to buy homes rather than rent.

Another report from Amherst Capital Management LLC found that if Amazon picks Austin, demand would increase 13 percent. Dallas Forth-Worth would see a 4 percent increase. 

Looking for your own apartment in Austin? North, South, East or West, we can help you find the perfect new place that fits your lifestyle and your budget! Give Apartment Specialists South Austin a call today at 512-200-7535!