WHAT $1000 A MONTH GETS YOU IN TEXAS | Luxury Apartment Hunting In Austin, Texas Part 1 (2023)

FAQs

Are Austin apartment prices going down? ›

To illustrate the price of rent in Austin is to draw a steep, steep hill. But for the past few months, that hill has leveled off as landlords have dropped rent prices. April rent numbers marked the first annual decrease in average rent since early 2021, according to data from ApartmentData.com.

Austin is the #32 most expensive large city in the U.S., with a median rent of $1,638. Citywide, the median rent currently stands at $1,461 for a 1-bedroom apartment and $1,778 for a 2-bedroom. Across all bedroom sizes (ie, the entire rental market), the median rent is $1,638.

Apartment rent keeps going up in Texas, and in Austin the increase is nearly 10 percent more than last year, making it increasingly difficult to afford living in the city.

While there's no consensus on what rents will do exactly in 2023 — go up a little, go down a little, or stay flat, according to three forecasts — what's clear is they are expected to return to more normal growth patterns, instead of the unsustainable, record rates seen in 2021 and 2022.

The average rent for apartments in Austin, TX, is between $990 and $1,912 in 2023. For a studio apartment in Austin, TX, the average rent is $990. When it comes to 1-bedroom apartments, the average rent in Austin, TX, is $1,623. For a 2-bedroom apartment, the average rent is $1,912.

A family of four estimated monthly costs are 4,087.9$ without rent. A single person estimated monthly costs are 1,158.6$ without rent. Austin is 24.0% less expensive than New York (without rent). Rent in Austin is, on average, 33.9% lower than in New York.

The busiest rental and moving period tends to be between the months of May and September. 1 The reason for this is fairly straightforward: A number of life changes tend to occur in these months. Many high school graduates are leaving home for college or jobs.

If you're not committed to mortgage payments, you have the flexibility to move around and discover different neighborhoods throughout the city. Renting before buying a home in Austin has the advantage of lower upfront costs compared to the down payment required when purchasing a home.

Austin-Round Rock Metro's home values are expected to drop by 1.4% between March 2023 and March 2024. According to their forecast, the supply and demand dynamics will likely push down prices over the next 12 months.

That's exactly what occurred in Austin during the Pandemic Housing Boom. In fact, according to Moody's Analytics, Austin home prices were "overvalued" by 63.7% at the height of the boom in the first quarter of 2022. Anything above 25%, Moody's considers "significantly overvalued."

Why is Texas rent so high? ›

Renters are seeing their housing costs jump as population increases, strict zoning regulations and rising home sales push up rent prices.

At this time, the Texas Rent Relief program has committed all available funds and is now closed. During the recent re-opening of the application portal on March 14, 2023, requests for assistance far exceeded available funding within the first 24 hours.

Can you negotiate rent? Yes. Each landlord will differ in how receptive they are to negotiating rent, but it happens a lot. Often landlords build risk into their rental rates so they can afford it when a renter is late or breaks their lease.

There is not a statewide law that places limits on how much a landlord can increase the rent when a lease is renewed. In fact, Texas law only allows cities to establish local rent control ordinances in certain cases.

However, to stick to the rule of spending only 30% on your monthly income on rent, you will need an income of $59,320 to live comfortably in a one bedroom apartment, which currently costs $1,483.

Median Rent in Austin

For studio apartments, renters should expect to pay between $450 and $1,800 per month, depending on the location. For a one-bedroom, those looking to rent should expect to pay anywhere between $700 and upwards of $2,000 per month. Two-bedroom apartments can range from $1,200 to $4,000 per month.

$14.66 is the 25th percentile. Wages below this are outliers. $24.04 is the 75th percentile.

In Austin, the study found that a single adult would need to be making $55,186 after taxes. If you were in a couple and only 1 adult worked, you would need to make $87,314. The income increases per child and per partner situation.

With that in mind, a good salary in Texas is between $55K and $73K. To live comfortably anywhere, it helps to track your spending and saving with SoFi Insights.

Austin is ranked 71 on a list of 500 U.S. metro areas when it comes to the cost of living. Dallas on the other hand boasts a cost of living that is higher than the national average and Austin.

What city in Austin has the highest cost of living? ›

Austin now the 5th most expensive large U.S. city for renters, rental company says. AUSTIN, Texas — On top of inflation and expensive gas in 2022, if you rent your home, you're probably feeling the financial strain. This is particularly true in the Texas capital.

Monthly electric bills are a product of how much electricity you use per month and your electric rate. In Austin, TX, the average monthly electric bill for residential customers is $159/month, which is calculated by multiplying the average monthly consumption by the average electric rate: 1,340 kWh * 12 ¢/kWh.

The cheapest months to rent are between December and March, or early winter to early spring.

Research shows that the best days of the week to rent an apartment are Mondays and Fridays. Additionally, the most expensive days to rent an apartment are Sundays and Tuesdays. We also recommend trying to rent at the beginning of the day between 9am and 10am for the best prices.

Advantages. Typically, summer is the best time of year to move into an apartment. However, May through September usually have more options to choose from because current leases begin to end. Families also tend to move when their kids are on summer break and have more time off.

The rapid influx of tourists to Austin each year, magnetized by its vibrant nightlife, live music, and remarkable outdoor entertainment, has resulted in an exponential increase in living expenses, which are now beyond the means of those with smaller incomes.

Austin is a popular place to move to due to its thriving job market and lower cost of living compared to other major tech hubs like San Francisco and New York City. Additionally, Austin is known for its world-renowned live music scene, festivals, outdoor activities, and unique local cuisine.

The cost of living in Austin, TX is 9% higher than the state average and 1% higher than the national average. Austin, TX housing is 16% more expensive than the U.S average, while utilities are about 6% less pricey.

Driving the news: Average home prices in greater Austin have fallen by more than 10% between July 2022 — when the market peaked — and April 2023, according to the Zillow Home Value Index.

The April 2023 report from the Austin Board of Realtors (ABoR) shows the median sale price is down 15%.

Is Austin a buyers or sellers market? ›

Austin is a Sellers Housing Market, which means prices tend to be higher and homes sell faster.

The lower prices come as mortgage rates have risen, decreasing purchasing power for many buyers. But even though prices are declining, was the headline about a crash overstated? Several leading experts who have been tracking the Austin-area housing market for decades say yes.

The number of unsheltered people who said they first experienced homeless in Austin went up to 74.5% in 2023, whereas in 2020 it was 63.4%, according to data. “In 2020, approximately 5.2% of people were counted in City of Austin-owned parks, nature preserves and greenbelts. In 2023, that number increased to 13.6%.

Buying a house in Austin looks like a smart investment, too, based on the city's promising future. According to the American Growth Project, Austin is the second fastest-growing city in the U.S. If that growth continues, home values are likely to continue to rise, too.

According to the Zillow Home Value Index, home prices in Austin have fallen by more than 10 percent between July 2022 and April 2023, while on a national level home prices declined by about 1 percent.

AUSTIN, Texas — After a red-hot Austin housing market, a new report from Zillow shows us just how quickly it's cooling off. The average home value in the Austin area is down 12% since the record highs we saw in June.

Couple that with the supply chain issues, the influx of high earners moving to the city and increased mortgage rates forcing potential buyers to rent, you end up with rent prices spiking. "Some rental home prices are increasing due to the recent tax increases that we're going to see on investment homes," said Doggett.

This article also included a chart from Goldman Sachs with a price forecast extending into 2024. It predicted that home prices within the Austin-area real estate market would continue dropping in 2024, but by a more moderate 3%.

Is it a good time to buy a house in Austin? While Austin isn't a cheap place to buy a home, the real estate market here is looking quite a bit more buyer-friendly in 2023. More sellers have been dropping their prices, according to data from Redfin, and properties are staying on the market longer.

In fact, according to Moody's Analytics, Austin home prices were "overvalued" by 63.7% at the height of the boom in the first quarter of 2022. Anything above 25%, Moody's considers "significantly overvalued." Second, a housing bubble requires speculation.

Is Austin overpriced? ›

A year ago, Zillow researchers named the Texas capital the nation's second-most overpriced housing market, after Boise. The Austin market is “arguably the largest housing bubble in America based on the fundamental data,” Reventure Consulting CEO Nicholas Gerli said in May.

Driving the news: Average home prices in greater Austin have fallen by more than 10% between July 2022 — when the market peaked — and April 2023, according to the Zillow Home Value Index.

Landlords have long enjoyed the benefits of buying rental property in Austin, Texas – from growing rental demand to plenty of opportunities for appreciation. With its robust job market, low taxes, and great outdoor activities, Austin offers a unique opportunity to profit while also enjoying all the city has to offer.

Regulatory factors such as significant delays in the city's permit review processes, lack of developable land zoned for high density residential development, minimal “by-right” entitlements, and fierce neighborhood opposition to density and affordable housing also contribute to increasing housing prices in Austin.

The median listing home price in Austin, TX was $679K in May 2023, trending down -2.9% year-over-year. The median listing home price per square foot was $386. The median home sold price was $551.3K.

The lowest rental rates are usually found between October and April, particularly right after the December holiday season. Fewer people are interested in moving—the weather's bad, schools are in session, etc. So individuals renting between the months of December and March typically find the best rental bargains.

According to a 2020 Report by the National Low-Income Housing Coalition, you need around $31,720 just to afford to rent a studio apartment in the Austin metro area. In contrast, mortgage site HSH Associates that you need to earn $78,441,65 in Austin to buy a median-priced home.