With many Austinites facing sky high rent, real estate experts are calling it a landlord's market. According to ApartmentData.com, apartment rentals have increased by more than five percent this year.
"While the city is seeing a 5.3 percent overall increase, you will find the highest increases taking place in the north parts of town,” said Cindi Bewley, Apartment Data Accountant Executive.
Some of the highest rent increases on average:
- Research Boulevard and North Lamar: 6.9 percent
- Pflugerville area: 8 percent
- Northwest Austin, Arboretum, Domain: 7.3 percent
Some of the renters in the Domain area are reportedly looking for quality, instead of quantity. They want smaller units with higher-end finishes and amenities.
"We've gone from 8-foot ceilings in the 80's to 9-foot ceilings in the 90's to 2000's. Now, we're seeing 10-foot ceilings in new luxury garden-style communities and that makes a different especially if you're living in a 500-800 square foot unit,” said Pat Jones, ARA Newmark Vice Chairman.
Andrew Childers with ARA Newmark said there is growth all over Austin, particularly in Northwest Austin. According to ApartmentData.com, the number of development in the past year is particularly strong in that area.
"We've had 11,200 units developed and opened up in the Austin market in the last 12 months, and 4,000 or 36 percent of those units have happened here in the north corridor,” said Bewley.
While the rapid development is expected to continue through 2017, experts said it is expected to slow down in a few years, by 2018 or 2019.
"The banks have tightened their lending to multi-family apartment communities that has in turn put a little caution in the market,” said Jones, "If our growth continues, with this in migration and job growth and deliveries slow down, we exceed equilibrium, there's going to be more renters than apartments, and therefore rents will logically rise."
In other words, the likelihood of rent going down in Austin any time soon is very slim.
Some of the brand new apartments in the North Austin area include, 'The Michael at Presidio' and 'Altis Lakeline' in Northwest Austin. Over at the Domain area, some new developments, include the 'Standard at the Domain' and 'Addison on Kramer Station.'