Rents are rising in Austin, in fact 9% in January 2012 compared to January 2011. And as job growth continues to accelerate in Austin, the young and the not so young are on the hunt for rentals.
But not so fast, many who have been leasing in the Downtown Austin area are fleeing the neighborhood as landlords are raising rents as fast as people are moving to town.
I spoke with a “downtown” tenant who informed me that she and her husband are on a month to month lease – which is accelerating monthly and need to find a more economical lease immediately -- but they want to stay CENTRAL. Those less expensive, central Austin leases are hard to find and are typically much smaller, with little or no updating and without the perk of a covered, Downtown parking space or a garage.
This squeeze of available leases will loosen here in Austin as there are at least 5 new apartment projects on the build in the near central Austin area; but if what I am hearing is true, apartments aren’t the answer for those fleeing the high rents of Downtown. Apartments will be perfect for the young “new comers” though -- as they want to try the area on before they commit to buying or signing a longer term lease.
And good luck with that long term lease. Landlords have all the cards right now and few will commit to a long term lease with this ON FIRE lease market.
Negotiating the lease amount – forget it! It is what the market says it is -- and the market says up, up and away.
How long with this pricy lease season stick around? When renters think the housing market has hit the bottom, or when they can qualify for a mortgage, or when they sell their previous home, or when they are more certain about their job prospects, or when they realize buying offers less stress on the monthly budget.
But not so fast, many who have been leasing in the Downtown Austin area are fleeing the neighborhood as landlords are raising rents as fast as people are moving to town.
I spoke with a “downtown” tenant who informed me that she and her husband are on a month to month lease – which is accelerating monthly and need to find a more economical lease immediately -- but they want to stay CENTRAL. Those less expensive, central Austin leases are hard to find and are typically much smaller, with little or no updating and without the perk of a covered, Downtown parking space or a garage.
This squeeze of available leases will loosen here in Austin as there are at least 5 new apartment projects on the build in the near central Austin area; but if what I am hearing is true, apartments aren’t the answer for those fleeing the high rents of Downtown. Apartments will be perfect for the young “new comers” though -- as they want to try the area on before they commit to buying or signing a longer term lease.
And good luck with that long term lease. Landlords have all the cards right now and few will commit to a long term lease with this ON FIRE lease market.
Negotiating the lease amount – forget it! It is what the market says it is -- and the market says up, up and away.
How long with this pricy lease season stick around? When renters think the housing market has hit the bottom, or when they can qualify for a mortgage, or when they sell their previous home, or when they are more certain about their job prospects, or when they realize buying offers less stress on the monthly budget.
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