RENTS UP,MAJOR METROS

CARROLLTON (alnsystems.com) – The apartment markets in Dallas, Fort Worth, Houston and San Antonio each saw decreases in occupancy and increases in average rent for the year ending September 2006, according to Carrollton-based ALN Apartment Data, a market research firm. Austin, however, held steady in occupancy rates.

Houston had the biggest change, going from 96 percent to 90.1 percent (6.1 percent).

Austin had the largest increase in rental rates for the year, going from $725 to $773 (6.6 percent increase). Fort Worth & Dallas had the smallest, going from $640 to $658 (2.8 percent).

Gray Buffington, President of Buffington Mortgage in Austin, compares the rental rate increase to the healthy real estate economy in Austin: “Austin seems immune to the declining real estate market in other parts of the country. Our population is expected to double within a mere 15 years. Currently, there are more buyers and investors than there are houses available. This relates to a great investment area for real estate–as prices and value will continue upward–but a population increase also leads less space available for those wanting to rent as well–resulting in increasing rental rates. Because of this, we are seeing a strong influx of renters wanting to jump to the housing market now while Austin is still affordable and their value will increase. Therefore, the occupancy in apartments has dwindled slightly.”

Austin is trying to stay ahead of the population increase with continued construction and luxury apartment and housing areas springing up throughout the city. It doesn’t, however, seem to be able to keep up with the every growing popularity of the city.