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Austin Area Rents Hit All-Time High

It is a great time to be a landlord and have investment property in Austin and surrounding area. As many of you know, rents took a dive with the high tech bust in early 2000’s. Finally, fourteen years later, rents are at an all-time high.
Austin continues to grow, and over 100 people are moving to the area daily. Since we manage many homes in the Cedar Park/Leander and Round Rock area, we did a lease analysis for these areas.  We did a year-to-date rent analysis for 2014 and compared to 2013 using MLS leasing data. We analyzed average and median rents. Below is a chart showing leasing data for the Cedar Park/Leander area for single-family homes:
 

CedarPark/Leander
CDOM
Sqft
List Price
Lease Price
2013-14
2013-14 %
Average – 2013
        23
         2,001
 $     1,541
 $      1,539
Difference
Difference
Median – 2013
        16
         1,882
 $     1,475
 $      1,475
 
 
Average – 2014
        21
         1,941
 $     1,588
 $      1,587
$    48.50
3.15%
Median – 2014
        14
         1,842
 $     1,545
 $      1,545
$    70.00
4.75%

CDOM represents the total days on market. Most homes are renting quickly. So, we did not anticipate the days on market to change much in 2014. Austin has had a robust economy with consistent job growth for some time.

The average rent in the Cedar Park/Leander area increased by $48.50 per month, or 3.15% to $1,587 per month. The median rent increased by $70, or 4.75% to $1,545 per month.

Round Rock
CDOM
Sqft
List Price
Lease Price
2013-14
2013-14 %
Average – 2013
        24
         2,087
 $     1,567
 $    1,565
Difference
Difference
Median – 2013
        15
         1,924
 $     1,475
 $    1,475
 
 
Average – 2014
        23
         2,098
 $     1,666
 $    1,663
$   97.70
6.24%
Median – 2014
        15
         1,966
 $     1,550
 $    1,550
$   75.00
5.08%

Just like homes in Cedar Park/Leander, the days on market did not change in Round Rock. This confirms the Austin and surrounding area have a strong rental market.

Monthly rents are slightly higher in Round Rock. The average rent in Round Rock increased $97.7 per month, or 6.24% to $1,663 per month. The median rent increased by $75 per month, or 4.75% to $1,550 per month.

Notice that the average and median rent is for homes in the 1,842 – 2098 sqft range for both areas.

Home values have also increased, but mortgage interest rates are still near record low levels. Now is a great time to take advantage of mortgage rates whether you are considering refinancing an existing rental property or are considering purchasing an investment property.

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services. You can also visit our website at www.smartsourcerealty.com .

Posted by: smartsourcerealty on November 17, 2014
Posted in: Uncategorized