As of June of this year, the average rent in the Austin area has hit $1,227, beating the previous all-time high of $1,190 in 2015, according to Shonda Novak of the Austin American-Statesman . The occupancy rate has averaged out to 94 percent, and with almost 17,000 new units under construction, the Austin area’s apartment supply is growing by 7.7 percent, according to MPF Research-Real Page.
The high occupancy rates have allowed rent to increase, but at a slower rate now than in previous years.
“The good news from a tenant perspective is, the average rental rate increase is slowing a little bit,” said Charles Heimsath, president of Capitol Market Research.
Still, many tenants are experiencing “sticker shock”, according to Dena Largent, sales manager for Home Place Apartment Search. The average rent in Austin is higher than anyone making under $13 an hour can afford – and most people must have a gross monthly income at least three times the rate of rent in order to qualify for a rental.