AUSTIN (KXAN) — If you saw your rent go up last year, you could soon notice another hike.
A report from Marcus & Millichap, which monitors Austin’s rental market, expects rents to go up by about 5.4 percent this year to an effective rent of $1,220 per month. Still, that’s lower than what the company saw last year when average rents increased by about 7.3 percent.
“The challenge we face is we have significant number of high-income jobs that are being produced and high-income earners are looking for more amenitized living situation,” said Craig Swanson, Regional Manager for Marcus & Millichap in Austin.
Swanson said as Austin sees new construction and rehabilitation of multi-family housing, renters are seeing increases to help fund the changes.
“There is no doubt we need more affordable housing,” said Swanson.
It’s tough to miss buildings going up across Austin, as construction crews try to offer more living spaces in the city. According to the report, builders created 12,000 new units in each of the last two years. Marcus & Millichap expects that figure to fall to 9,000 for this year. Still, Swanson calls the growth in supply “healthy.”
“The pricing is still going up. It’s kind of hard because everything that’s built new is coming out at a very high price regardless,” said real estate agent John Martin, an assistant manager at Apartment Experts.