The rental market in tech hubs, including the five-county Austin metro, is climbing back up to pre-pandemic levels.
The U.S. median April rent was $1,483, up 2.7% year-over-year and the most marked increase since March 2020, according to a monthly report from Realtor.com. Rents in tech hubs, where prices fell dramatically due to remote work, are also on the rebound. Although they were still down 5.4% year-over-year in April, they are still up from the 6.6% decline recorded in February.
Austin is among the metros leading this charge. The median April rent in U.S. tech hubs was up $2,086, up 1.1% from March. In Austin, rent was up 1.7% year-over-year, second only to Denver. Other hubs, including San Jose and San Francisco, in California, are still posting double-digit declines.
"In tech centers, rent declines are getting smaller, signaling they are on the path to turnaround," Realtor.com Chief Economist Danielle Hale said in a statement. "If the trend continues, renters could expect to be paying pre-pandemic rates by as early as this fall."
The work-from-home migration led many renters and prospective homebuyers to prioritize more space. The desire has been reflecting in home listing prices here in Austin as well as in rents for larger units across the country, according to the Realtor.com report. The median April rent for two-bedroom units across the U.S. was $1,662, up 5.2% year-over-year and surpassing their pre-COVID growth rates. The median April rent for studios, on the other hand, was down 1.9% over the same period.
This represents a notable change from earlier in the pandemic when the local housing market was scorching hot but area rents remained depressed.
Bruce McClenny, president of ApartmentData.com, attributed Austin's recent rental market recovery to a combination of factors: job growth powered by companies such as Tesla, Oracle and Samsung; relocations; and an increasingly pricey housing market. "Austin's home market is probably hotter than ever," he recently told Austonia. "That has to play into the rental market right now.
- Austin rent skyrockets over past decade, despite COVID-19 - austonia ›
- Austin's rental market rebounds after pandemic slump - austonia ›
- Austin ranks in top 3 of tech job markets in U.S. & Canada - austonia ›
- Why COVID caused Austin rents to fall and house sales to rise ... ›
- Austin sees rent drop amid COVID, a rare boon to tenants - austonia ›
- Even a raised minimum wage in Austin wouldn't cut it, study says - austonia ›
- Austin's hot housing, rental market bleed into southern neighbors - austonia ›
- Austin's nickname 'Silicon Hills' may be here to stay - austonia ›
Officials are asking certain residents in Bastrop State Park to evacuate as crews work to put out a “very active fire” that is currently 0% contained.
The Texas A&M Forest Service has responded to help local fire departments with the Rolling Pines Fire at 100 Park Road 1A, which is consuming 300 acres. Residents of Pine Hill Drive, Pine Tree Loop, Linda Lane and Lisa Lane are being asked to evacuate.
Today’s Bastrop Rolling Pines Fire is burning along Power Plant Road towards Lake Bastrop South Shore. pic.twitter.com/YCvJkIAg1u
— BastropCntyTexas OEM (@BastropCntyOEM) January 18, 2022
Aviation resources have been called to assist.
According to the Bastrop County Office of Emergency Management, the wildfire sparked during a prescribed burn that took place today, despite wildfire warnings. Park Road 1C from Harmon Road to Park Road 1A had been closed for the prescribed burn.
The blaze is in the same location as the Bastrop Complex Fire of 2011, which burned for 55 days, killing two people, destroying 34,000 acres and around 1,700 homes and buildings. The fire, which started in 2011, became the most destructive wildfire in Texas at the time.
A hotbed for fires, the Hidden Pines Fire started at the same location in 2015, destroying 4,600 acres and 64 structures.
Some road closures have been put in place at State Highway 21 South Shore Lake Bastrop and East State Highway 21.
This is a developing story and will be updated as information becomes available.
After months of record-setting periods for Austin real estate, the Austin Board of Realtors announced Tuesday that the metro's housing market accounted for over $23 billion of economic activity in 2021, making it the biggest year yet for both home sales and median home prices in the metro.
The Austin-Round Rock MSA saw 41,316 homes sold in 2021, 2.5% more than a record-setting 2020. Median home prices skyrocketed as well, rising 30.8% from 2020 to $450,000. The housing market also saw unprecedented impact on Austin's economy, with sales dollar volume jumping to over $23.38 billion, and more homes hit the market in 2021 than any previous year, increasing by 5.9% to 46,449 total homes listed.
(Austin Board of Realtors)
As many recent Austin homebuyers have experienced firsthand, Austin Board of Realtors 2022 President Cord Shiflet said 2021 was the most "exciting, complicated, fast-paced and record-setting housing market" in Austin's history.
Shiflet dubbed the market as "complicated" for a reason—Austin became a case study on supply and demand in 2021, with demand far outpacing the number of active listings, which dropped by 48.2% to 2,348 homes in 2021.
The metro ended the year with 0.6 months of inventory, a far cry from a "healthy" six-month supply, and houses were snatched at breakneck speeds, spending 25 fewer days on the market when compared to 2020. The average home was on the market for 20 days.
But low inventory is more due to high demand than a stagnant homebuilding market, Mark Sprague, Independence Title's state director of information capital, said in the report.
“In 2021, the record number of homes sold were demand-driven transactions and that demand was influenced greatly by companies continuing to target the region for job creation and expansion," Sprague said. "Even though more homes are being built, listed and sold than ever before, our region is still nowhere close to having a comfortable amount of supply to meet the demand, which is why home prices continue to rise steadily.”
Over 23,000 jobs have been promised by companies across the metro as of December 2021, breaking the 2020 record, according to Opportunity Austin, the economic development arm of the Greater Austin Chamber of Commerce. With an influx of major factories and offices, including Tesla's Giga Texas, Samsung's Taylor plant and a planned 33-floor Facebook office, Sprague said the region's booming market paired with a struggling inventory and supply chain issues could be a double-edged sword in 2022.
"In short, 2022 will see a robust market for home sales and property values, but the region must do more to address inventory, ” Sprague said.
Shiflet recommended that potential homebuyers make a decision ahead of predicted increases in interest rates and home prices and said that he hopes local politicians will continue to prioritize affordable housing in the election year.
Still, Shiflet said a record-breaking housing market reflects Austin's growing reputation as a hub for talent, tech jobs and a good quality of life.
"With all the new jobs across the region from exciting companies like Tesla and Samsung, Austin was put on the world’s stage and captured the hearts and attention of so many," Shiflet said. "We are lucky to call Austin our home when it has so much to offer from a great quality of life to a wonderful destination for innovation and opportunity.”
- Austin metro posts $800M in home sales to foreign buyers - austonia ›
- Austin's housing market is hot, but buyers feel burned out - austonia ›
- What $10 million (or more) can get you in Austin real estate right now ›
- Fall breeze begins cooling Austin housing market ›
- Austin luxury real estate market booms in pandemic - austonia ›
- Luxury real estate to get special tax status under 'blight' statute in ... ›