Austin rental rates on the rise

Despite new developments prices may not come down

Updated: Thursday, 14 Apr 2011, 2:42 PM CDT
Published : Thursday, 14 Apr 2011, 2:42 PM CDT

AUSTIN (KXAN) - Finding an affordable place to live in Austin now getting even tougher.  Even though there are positive signs that construction is picking up again, along with our local economy the effects of the downturn are lingering - especially for people who rent.
 

For two years Rebecca Wernickie has jogged past this once stalled project at I-35 and Riverside Drive.  She's happy to see construction start again but  does worry about when it's complete.

 "It will probably make the property values go up and my rent go up but we'll see," said Wernickie.

  Not out of the question--according to the Austin Apartment Association rents increased 4.6 percent in the last year and apartments are 93.2 percent occupied--and that's rising.

"The market has completely changed.  Austin is hot again," said Orlando Garza with Apartment Finders Service.

Garza says it's now a landlord's market.  There are no more move-in specials, renters must look 8 months in advance and search farther from downtown.
 

"The days of bargaining are pretty much over with," said Garza.

Momark Development President Terry Mitchell says  projects stalled for three years but the city's population continued to grow.

"You keep the supply the same and increase the demand what happens to price it goes way up.  That's what's happening," said Mitchell.

Although four new apartment communities are in the works like one on South Lamar---and 33 are proposed, Mitchell says it's not enough to bring rents down.
 
"I wish it wouldn't happen because in the long run it's an  affordability issue," said Mitchell.

Some renters who's leases are up are seeing monthly rent increases of 50 to 400 dollars or more.
  

Mitchell says that's leading some tenants to explore buying rather than renting.