Austin's average rent jumped by 26% from January 2021-to 2022, with the highest increase in the state of Texas, according to a Zumper National Rent report.
The city had the 7th highest jump in rent prices among the 101 U.S. cities studied. With a median price of $1,550 for a 1-bedroom rental, Austin jumped up three spots from a year prior coming in 26th on the list—the highest of all Texas cities studied.
Austin's median one-bedroom rent increased more than any other Texas city from January 2020-21. (Zumper)
Chart-toppers like New York City still have more than double the average Austin rent ($3,260). But for many traditional high-dollar areas, that gap is narrowing: rent in San Francisco, the Silicon Valley giant with the second-highest rental prices on the list, rose by 6.3% year-over-year, while all nine California cities with higher rent that Austin saw a change of 15% or less.
As companies and priced-out migrants reportedly flee to less-expensive markets, new growth hotspots in states like Florida and Arizona skyrocketed, including Miami (25.8%), Orlando (27.6%) Tampa (26.2%), Scottsdale, AZ (27.6%) and Gilbert (20.9%). Cities dubbed as mini Silicon Valleys, including Austin, grew as well: Boston's 1-bedroom rent leaped by 26.5% to third on the list, while Boise, Idaho rose by 24.3% and Las Vegas leaped up nine slots with a 27.5% increase in two-bedroom rent.
No longer a cheap city in the historical cheap state of Texas, Austin rent remains far from New York standards but is still nearly triple cities like Wichita, Kansas, which finished out the list with an average rent of $660. Increases in rent have come hand-in-hand with an influx of newcomers—Austin is one of America's top 20 "boomtowns", according to frequent vistor and billionaire Elon Musk and a December 2021 New York Times report.
And while a pandemic rent surge has been seen nationwide, some have noticed that more traditionally affordable cities like Austin have seen increases much more quickly. University of Texas associate economics professor Peter Bergman found that more than half of low-income Austin residents worry about getting evicted in the next year as rent increases coincide with inflation and income losses for many.
2. While we're incredibly excited about the partnership and we've all pushed incredibly hard to make it happen, what's happening to low-income renters is extremely bleak. First, inflation: in the prior year or so, rental prices have gone up more steeply in more affordable cities. pic.twitter.com/QyZEPotL73
— Peter Bergman (@peterbergman_) December 23, 2021
Fueled by new tech HQs, a nationwide pandemic surge in rent and a booming job market, Austin rent will likely continue to rise, especially as satellite cities like Cedar Park, Kyle and Buda continue to grow alongside the city.
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Last fall, Janneke Parrish was pushing hard in her advocacy at Apple. She wanted to see flexibility with remote work, pay equity and for Apple to respond to Texas’ six-week abortion ban with paid time off and coverage for the procedure under the company’s health insurance plan.
Then, in October last year, she was fired.
Parrish, who lives in Round Rock and worked at Apple’s Austin campus as an Apple Maps program manager for about five years, is a leader of an internal movement at the tech giant. It comes at a time when the company is expanding its local presence with a new $1 billion Northwest campus with space for 5,000 employees.
Parrish worked at this Apple campus on West Parmer Lane. (Austonia)
In August, the movement known as #AppleToo launched a website with the goal of organizing employees and sharing stories about alleged workplace harassment and discrimination. Austonia talked to Parrish and another former Apple employee who are part of the movement about their claims in what they observed while working for Apple.
“I’ve been advocating for members of my immediate team within Apple for several years,” Parrish said. “And when I realized that the issues that I was seeing with my own team were true throughout Apple, there was a natural transition toward, ok let’s expand this advocacy and instead be more of an advocate for everybody at Apple to ensure that we the workers at Apple are treated fairly and equitably and get treated as human beings.”
In the lead-up to her firing, Parrish faced an allegation that she had leaked details from a recent all-hands meeting to the Verge. She says she suspects it’s this, along with her advocacy, that influenced Apple’s decision to fire her.
“I didn’t do (the leak). And I know that Apple knows I didn’t do this,” Parrish said since a few employees including herself didn’t have access to that meeting due to a system crash that day. “I was still placed under investigation.”
As a requirement of the investigation, Parrish turned in her work devices. Before doing so, she wiped the files from her computer, saying she didn’t want her personal files on Apple servers. After a few days on paid suspension, she says human resources called and told her she’d been terminated with the reason being that she’d deleted those files.
Parrish is one of the leaders of the AppleToo movement. (Janneke Parrish)
Before Parrish’s firing, Apple was taking action on leaks and workplace organizing. An internal memo from 2018 noted a number of leakers they had caught were arrested. About a month before Parrish was fired, the tech giant had fired a senior engineering program manager for allegedly leaking confidential information. And in a September note, CEO Tim Cook sent a note to all Apple employees saying “people who leak confidential information do not belong” at Apple.
Austonia asked Apple about Parrish’s case and other matters at the company. In an email reply, the company said:
“We are and have always been deeply committed to creating and maintaining a positive and inclusive workplace. We take all concerns seriously and we thoroughly investigate whenever a concern is raised and, out of respect for the privacy of any individuals involved, we do not discuss specific employee matters.”
Another piece of Parrish’s advocacy involved career opportunities for workers, particularly those based in Austin.
Even though Apple upped their presence in Austin in recent years, Parrish said Austin-area employees couldn’t enjoy networking opportunities like California workers did as Apple events were held on the West Coast. Texan Apple workers shouldn’t have to relocate to move up, she said.
“For those of us in Austin, I noticed, especially for my department, my career options were extremely limited,” Parrish said. “I was told by a manager that if I really wanted to advance in my career, I would have to move out to California.”
Parrish said Apple employees in Austin do not have the same career opportunities as those in California. (Shutterstock)
Austonia spoke to another member of the organizing group AppleToo. She requested anonymity to not hinder future job prospects in the tech industry. She’ll be identified with the pseudonym Mary.
Mary said she’s worked at Apple since 2008 in Austin, starting off as a contractor in customer support at iTunes and moving around over the years, leaving the tech giant earlier this month.
“It’s too hard to advance and there are no opportunities for development so (I was) just kind of stuck in a dead-end job,” Mary said.
Mary felt that another challenge was being a woman at a tech company. Starting out, she says she was the lowest paid in a training class of mostly men with pay of around $30,000, which rose to about $55,000 by the time she left.
But aside from pay, communication also proved to be a hurdle. To make her persona appear gender-neutral, she changed how her name was displayed on Slack, the interoffice directory and over email to just her first initial.
“The hard part was when I would have to get into a meeting with people then I felt like my voice is giving me away now,” Mary said. “But when I could avoid having meetings, I felt like it did make a difference.”
Mary says there’s been some movement in the right direction. An internal memo in November affirmed employees’ right to discuss pay after it had shut down employee-run pay equity surveys and an employee-run Slack channel. Earlier this month, it announced new efforts in a racial equity and justice initiative.
“We all want to see positive changes from Apple,” Mary said. “We all want them to look at wage disparities. We’d like to see more diversity—more minorities in leadership positions, more females in leadership positions.”
Still, Mary feels there’s more to be done. “I wish Apple was more responsive at making bigger changes,” she said.
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A $500 million mixed-use development spanning 1,400 acres is coming to Southeast Austin, near Tesla’s headquarters at Giga Texas.
Plans for the development by Houston-based real estate firm Hines include 2,500 houses along with multi-family and townhomes, and commercial land. Hines is partnering with Trez Capital, Sumitomo Forestry and Texas-based Caravel Ventures.
The development, which is known as Mirador, will be located off the 130 Toll and Highway 71, which the developers say provides easy access to the Circuit of the Americas Formula 1 racetrack and other Austin attractions like restaurants, parks and live music venues.
Hines also boasts amenities like a 60-acre lake, over 600 acres of greenbelt, community parks, trails and a swimming pool.
“As Austin continues to grow into the tech epicenter of Texas, coupled with a supply-constrained market, the demand for new housing is at its highest,” Dustin Davidson, managing director at Hines, said. “Mirador will be critical in providing more options for Austin’s growing population and we are excited to work alongside our partners given they each provide a unique and valued perspective in single-family development.”
The local housing market has been hot in recent years, with home sales accelerating earlier in the pandemic. In July 2021, the Austin metro area hit its pricing peak at $478,000. As Austonia previously reported, the area has been expected to see the Tesla effect, with the new workforce driving up demand for housing and other services.
The single-family houses are expected to be developed over the course of six years, in phases. Construction on the homes is expected to start this year and home sales will begin in 2023.
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