According to a recent report by Bercadia Mortgage indicated the Austin rental market is looking at another 4.5% increase in rates for 2015. This isn’t a good sign for renters but definitely for those investors owning rental property. The average market price will be $1,185/mo. According to the study that 4.5% increase includes the newer high risers along with the demolition of Class C and D properties as well. The city of Austin considers affordable house to be 30% of a person income. That means a person would need to make $3850/mo to afford the average rent of $1,185. However, the city considers the living wage in Austin to be $11/hr but that only equates to $22,880/yr salary. This is all about supply and demand. The only real relief for renters is that developers have not slowed down production.
Good time for investors bad for renters
About the Author: Brent
Brent Bockholt is the Co-Owner of Austin Property Team (APT) and is in charge of the overall operations and business development. He is an active member of the Austin Board of Realtor (ABOR), the National Association of Residential Property Managers (NARPM) and a licensed Realtor ®