If you think Austin apartment rental rates are high now, brace yourself for what’s coming in 2015. Andy Hill, senior vice president of Berkadia Commercial Mortgage, LLC, says rent prices are expected to climb 4.5 percent by the end of the year, making the average rent in the capital city $1,185 a month.
A Zillow survey found that between 2013 and 2014, Austin rental rates increased by 9.5 percent, making it the largest increase in Texas' four major cities: Houston was a close second, having increased by 7.2 percent. The capital city made it to number 6 on the list of highest rents increases in the country.
According to the survey, apartment dwellers in Austin pay more for rent -- per capita -- than residents of Dallas ($12,000), San Antonio ($9,600) and Houston ($10,500). Natalie Young, manager at A Plus Apartment Locators, says rental prices have continued to rise since 2009. No one knows when this trend will let up.
Today, the market charges an average of $1.15 per square foot, with a one-bedroom apartment costing between an “affordable” $700 -- in outlying areas -- to $1,500 downtown. Not everyone can afford to live downtown or in Central Austin, making the suburbs an attractive option. However, due to demand, even the rents in nearby municipalities have increased.
As you can see, it's not a renters' market in Austin. If you plan to stay in the Capital City for the long haul, now is an opportune time to purchase. Forbes recently declared Austin the No. 1 best city to invest in 2015.
Their criteria for “best of” favored strong population growth -- which promises a steady supply of renters -- and ever increasing employment opportunities.
As well, Fannie Mae and Freddie Mac recently announced they will launch mortgage programs with down payments as low as 3 percent.
These target buyers with good credit but little cash for a down payment.
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