Austin Apartment Rental Occupancy up to 95%-Time to Invest in Rental Properties or Buy Instead of Rent!

A recent article on KUT (a UT Radio Station) discusses why occupancy rates are up to about 95% and rising in the Austin, Texas Area and inventories are dropping. What does that mean to you if you are renting in Austin? What does it mean if you are considering investing in rental property in Austin?

Here in Austin, we are experiencing an in-flux of people moving to the area. Some studies indicate we will get between 30,000-35,000 per year. A recent economic housing forecast I attended predicted 50,000-55,000/year over the next 10 years. That's a LOT of people!

Why are they moving here to Austin? We actually have job growth here in Austin and in Texas. Prospects for job seekers are likely better here than in the areas they are moving from. Plus, it's an awesome place to live. We have great music, so many recreational opportunities, gorgeous scenery, rolling hills and lakes galore, we have excellent universities and education opportunities. Oh, and don't forget the barbeque!

Recent tight money has made it more difficult for developers to build apartment complexes, so we are running behind on the amount of inventory we are likely to need going forward. One estimate expects, however, that 10,000 new apartment units will get started in Austin this year, which will help bridge the gap in the future.

Eldon Rude, with the real estate forcasting firm, Metro Study, said "As people in apartments begin to see pricing increasing in the for sale housing market, that is going to result in them being more confident that buying a home is again a good investment. And, maybe a sense of urgency to buy - that prices are going to go up significantly, so we better act now."

The fastest rising rental rates in our area are in Round Rock with an annual growth rate of almost 9%.

Okay, so what does that mean to you if you are currently a renter in the Austin, Texas area? It may be time to look at buying. With interest rates for a 30 year fixed mortgage hovering around 4%, it may truly be cheaper (or at least the same) as renting. However, when you buy a home, you can deduct certain items on your federal income tax, which makes it even more advantageous. It may be better to buy than rent in Austin, Texas. Contact us for more information. Never owned a home before? Ask for our First Time Home Buyers Guide. It's FREE and informational.

Thinking of Investing in Rental Property in the Austin area? It may be a good time to invest in our area. With rising rental rates and an increasing influx of new people to our area, they have to find a place to live. Reduced inventories in apartments will push more people into multifamily housing and single family homes. Contact us for your options on Investing in Rental Property in Austin. We will be happy to work with you to determine your best return on investment by reviewing home prices and monthly costs versus rental rates.

Austin, Texas and the Central Texas Hill Country are amazing places to Live, Work, Play and Invest! And, there may never be a better time than now!