Austin real estate investors are sure to be thrilled at the news that Austin is projected to have one of the highest rent increases in the nation this year. If you’re a renter, however, you may not be so excited at the thought of rental rates making a five percent increase by years end. Projections of the market-leading rental hikes are a result of an analysis by HomeUnion, a real estate investment management firm, which lists the 10 U.S. metros that are expected to show the strongest home rental growth for 2016.
According to Austin CultureMap, Austin came in 8th on the list of metros with the highest expected rental growth this year. Although San Jose, CA topped the list for strongest anticipated rental growth in the U.S., Austin was pointed out as one of the standout metros for its stellar economic growth. Feeding Austin’s swelling economy is a leading employment market and tech sector that’s created an ideal environment for job-hunters.
Though mostly attributed to its strong economy, Austin’s projected rent increases are also the result of population growth and increased demand for rental housing. As the year progresses and rents increase, buying a home will become increasingly more attractive to many renters who want to stop paying ever-increasing rent with no subsequent financial benefit in favor of investing in their own wealth through homeownership. Average rates for single-family rentals in Austin are expected to reach $1,787 at the end of 2016.
For a free, no-obligation consultation on how to get out of the rental market and buy an Austin home with potential for strong equity growth, contact David Brodsky Properties. We’re a Platinum Top 50 Real Estate Team and experienced real estate investors who are eager to help you take advantage of the strong Austin real estate market. A DBP real estate consultant will reach out to you within 24 hours to coordinate a meeting and show you how owning an Austin home can benefit you.