Renters in Austin may need to spend more time than usual to secure housing this year. End of year reports show that 60% of renters in the Austin area chose to renew their lease for 2023. There’s a few different groups of people that Austin’s rental squeeze may have an impact on.
Renters looking to move into a new place are likely to find competition at most rental properties. The latest numbers from RentCafe show that for every available apartment unit in Austin, there are an estimated 12 renters trying to live there.
If you’re planning to move into a new rental this year, start early and hire a Realtor who can help expedite the process or find off market listings for you.
Additionally, if you’re able, consider buying a place of your own. As demand for rentals goes up, so does pricing. A fixed rate mortgage payment will stay roughly the same for the entire time you own a home.
Landlords & Investors
The rental squeeze means that you have leverage to increase you rents. Rent prices must be honored through the duration of whatever current lease is in place. However, once the lease is up for renewal I highly recommend reaching out to us for an updated CMA. You shouldn’t have a long vacancy if you re-list the property on the market, and/or can also propose higher rent to the current tenants if they wish to renew.
The rent squeeze shouldn’t have too much of an affect on you if you’re in the market to buy a home unless there’s a large exodus of would-be renters shifting to purchasing instead. This would result in a larger buyer demand for homes which could cause pricing in Austin to increase more than normal. While this scenario isn’t extremely likely, buyer demand is picking up now that interest rates have somewhat normalized, so reach out to us for a consult if you’re still on the fence of whether to buy this year.
If you’re someone considering selling your home in Austin, the rent squeeze will have the least affect on you. Our best advice for selling is still to wait until the spring when buyer demand should be at its peak for the year. Reach out to us any time for a listing consultation!
Austin’s market is always in a new phase of what some call ‘exciting’ and others call ‘crazy’. 2023 is likely to be another year with fluctuations, but we’re here and plugged in to keep you informed!
We’d love to be your resource for all things real estate. If you have any questions about Austin’s rental squeeze, please reach out any time.