Comparing month-to-month rental increases, Austin, Texas lands at number one for June. It’s not the best category to be number one in for any city.
After COVID-19, rent has increased dramatically.
During and after the pandemic, people moved and Austin was one of those areas.
Several people who moved to Austin saw price decreases compared to what they were previously paying. Redfin found out-of-town residents had a 32% higher budget than locals. This was especially true for people coming from California and New York City.
Sabrina Archolecas the senior asset manager of Redfin said:
“My nickname for Austin is Texa-fornia because so many people are moving in from California.”
“Buyers’ agents are taking lawn chairs to showings because lines to get into properties are so long. People moving in from other parts of the country are making the market incredibly competitive and driving up prices like agents have never seen. One recent four-bedroom, 3,200-square-foot listing in Austin had 16 offers in one weekend; the list price was $575,000 and it sold for $638,000.”
These are the other cities and the rent percentage increase according to Newsweek:
- Austin, Texas (+ 108.2 percent)
- Jersey City, New Jersey (+ 51.6 percent)
- Tempe, Arizona (+ 49.3 percent)
- New York, New York (+ 41.0 percent)
- Salt Lake City, Utah (+ 40.5 percent)
- Long Beach, California (+ 39.6 percent)
- Fremont, California (+ 38.2 percent)
- Richmond, Virginia (+ 35.7 percent)
- Tacoma, Washington (+ 32.8 percent)
- Portland, Oregon (+ 32.2 percent)
But KVUE reported a 19.6% increase in Austin which was derived from Realtor.com.
The average resident in Austin needs to make a minimum of $27.90 an hour working full-time to afford a two-bedroom apartment. Rent for a two-bedroom is $1,451 per month.
Areas around Austin are high as well. Outside of Travis county, rent is similar in Hays, Williamson, Bastrop, and Caldwell. Martin, Lynn, and Falls County have lower rent.
Before Texas was dealing with busing migrants to Eastern cities, the governor understood the concerns of local residents. A little over a year ago, Governor Greg Abbott announced a rental assistance program to help residents with their rent and utilities. This was provided through the Texas Department of Housing and Community Affairs.
You can find out more information here.
Do you notice the higher prices in Austin as compared to a year or two ago?