Austin renters find deals in the market

The slowdown in the housing industry is having an impact in another area of Austin's economy.  

According to one Austin real estate investment firm, rents in area apartments have dropped nearly 5 percent.  The average rent in 2009 is $750 a month.  Compare that with the average in Dallas Fort Worth area, it's about $50 more.

At the Artesian apartment complex in Northwest Austin, there are deals to be had.

"We have, right now, an additional special that we're doing is November for free. So you can actually move-in, not pay anything but the $99 app and admin," said the rental agent.

Callie Hayes graduated from UT in the spring.  She's living in West Campus, but is broadening her apartment search.

"The area I looked in was West Campus. I'm a student, so it was very expensive," she said.

The two-bed, two-bath on Parmer near 620 is much larger and a little more than half of her current rent -- not to mention the move in special.

"The $99 move in is a wonderful concession that you can make it easy for people to move in and still pay rent," says Louis Divino.
Divino has been helping people relocate in Austin for 25 years.  Right now, he says, the Austin market is a tale of two cities.

"We're seeing specials, concessions and availability up north. Whereas if you come to midtown, the downtown area, we're seeing less across the board as far as availability and concessions," he said.

Janna Herring is learning that first hand.  She lives in South Austin now and wants to stay there.

"I haven't looked up north. If I can't find anything south, then yes, I guess I'll have to move up north. Because I know exactly what I want," she said.

South Austin isn't as competitive as the north because 17 rental properties in the 78704 ZIP code have been converted in to condominiums.  That's lowered availability.

Still, Herring is finding some deals.

"They're like if you move in, we'll give you your first month's free. Different stuff like that," she said.

And - at least for now - she's keeping her heart in South Austin.

Downtown Austin is still very hot.  The average rent for a one bedroom is about $1,300.  But, there are three apartment complexes set to open, and that could soften the downtown market.