Vacancy levels below 4 percent make the metro one of the tightest rental housing markets in the U.S.
IRVINE, Calif., March 17, 2017 – HomeUnion®, an online real estate investment management firm, has released its 2017 National Single-Family Rental Research Report, which ranks Austin as one of the most desirable rental markets in the nation. The Lone Star State’s capital placed ninth in HomeUnion®’s Highest Demand ranking, which means the metro features some of the strongest supply and demand fundamentals in the nation and has a limited number of renters that will eventually graduate to homeownership.
“An influx of Millennial job-seekers drawn to the low cost of living compared to coastal markets, combined with growth in Internet and technology sector jobs, make Austin one of the most desirable metros for renters,” says Steve Hovland, director of research at HomeUnion®. “Austin has a large population of educated Millennials, so it’s unlikely that homeownership levels are going to go up significantly in this market, considering the all-time high levels of student loan debt. Furthermore, vacancy rates are extremely low in the Austin single-family rental (SFR) market, projected to compress to 3.9 percent, while rents are expected to climb 2 percent by year’s end. All of these factors combine to provide excellent opportunity for both local and remote real estate investors.”
Here are some key takeaways on Austin’s investment housing market:
- Austin’s year-over-year employment growth is projected at 3.6 percent this year, compared to 1.7 percent growth nationally.
- SFR vacancy in Austin is expected to drop by 80 basis points to 3.9 percent.
- Rents for Austin SFRs are anticipated to grow to $1,735 per month, up 2 percent from 2016.
- Prices for investment homes in Austin ended 3Q 2016 at $242,375, with over 80 percent of investors choosing to use leverage.
For more information on the state of the U.S. investment housing sector and market conditions in 29 metros nationwide, download the 2017 National Single-Family Rental Report.
HomeUnion® is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion®’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Communications Manager, HomeUnion®