Violet, you’re turning violet!
Is it us, or is Austin’s growth rate starting to resemble a small girl, turned rapidly swelling blueberry?
An increasingly popular choice for tech companies, entrepreneurs, and startups, it’s no surprise when a handful of multi-billion dollar companies chooses to relocate to Central Texas, bringing thousands of new employment opportunities with them.
A KVUE report from early this year stated that Texas is the leading destination for companies relocating from other states, and despite the pandemic, welcomes a thousand new residents a day (source). The news report also goes on to quote the President and CEO of the Austin Chamber of Commerce, Laura Huffman, saying that “2020 proved to be the best year for attracting new jobs and new business to Austin.”
In fact, it’s been estimated that the six major companies listed in the graphic below will bring a combined total of 38,000+ jobs to the greater Austin area alone! Of the countless companies expanding and/or relocating to Travis County, Tesla, Google, and Apple are amongst the most well-known.
But what does defying the economic odds of a global pandemic mean for the Austin apartment market? As many Austinites could tell you, property management companies seem to have been preparing for a population boom all along. The serial development of multifamily properties around the city is never-ending and arguably as much of an ATX staple as live music and artisanal food trucks. According to an article published in the Austin American Statesman, 12,600 new apartment units were completed in the greater Austin area in 2020–a year-over-year increase of 25.3% (source)!
However, too much of anything is still too much and as the number of apartments increased, the total cost of rent did the opposite. Rent averages had decreased by 4.4% as of last December (source), displaying evidence of what we refer to as a “renter’s market.”
In a renter’s market, the supply of apartments is greater than the demand for them. As a result, management teams work strategically to get a leg up on competing properties and secure tenants with frequent price drops, rent specials, and added concessions; which in turn, greatly benefits renters.
Even when the market generally favors those renting over those leasing, finding increased savings isn’t as easy as skimming a property website. Lucky for you, discovering apartment deals is our full-time job, and our service is totally free! On occasion, we even have the privilege of negotiating exclusive rent savings for Smart City clients.
If you’re ready to ditch the hard work and have a professional run point on your Austin apartment search (at no cost to you), fill out our web form and get connected with a local, licensed agent!
Not moving right now? Our Ultimate Guide to Renting, Austin Edition is an incredible resource for anyone looking to brush up on their apartment hunting skills and feel confident signing their next lease–whenever that might be!