Austin’s apartment availability could soon catch up with its popularity, according to a recent study. National apartment search website RentCafé issued a report Wednesday that lists the top cities expected to create the most new apartments this year; Texas cities dominated the chart, with Houston and Dallas taking the number-one and -two spots.
New York, Los Angeles, and Washington, D.C., round out the top 5, and Austin follows in sixth place, with an expected 13,568 new units this year. (For comparison, top spot Houston is expected to add 25,935).
Houston, Dallas-Fort Worth, Austin, and San Antonio represents 22% of the total estimated increase in inventory across the 50 largest U.S. metros, according to the study, which also notes that Census figures show that the four metro areas collectively added more people last year than any state in the country (approximately 412,000 new residents).
Texas might be doing it bigger (surprise), but the boom is nationwide. RentCafe reports that more than 320,000 new apartments across the country are projected to be completed in 2016, a 50% increase compared to 2015.
Will the boom mean lower rents? RentCafe offers some conjecture that it might, especially in places where the rent growth rate has been off-the-charts in recent years (San Francisco, New York City). In Texas, it notes, Houston rents have already been declining, though Dallas may not join that trend due to a healthier employment rate. While the report doesn’t mention Austin rent rates, other reports we’ve seen put local rent growth at a low to steady rate. “Easing pressure on” doesn’t necessarily lead to “lowering” monthly rent, in other words.
You can read more about the report at the link below.
• Apartment Construction at a 10-Year High, Eases Pressure on Rental Prices in Booming Markets [RentCafe]