Culturemap reports that rents in Austin will rise through 2020, according to a new report by Axiometrics.
Axiometrics forecasts that average rent for an apartment in the Austin metro will rise 11 percent over the next three years, topping out at almost $1,400 per month.
By the end of 2017, the report forecasts that the average monthly rent in Austin will be $1,239, compared to $1,189 a month at the end of 2016, which is an increase of 4.2 percent. By 2018, that figure will be $1,271 and in 2019 it will be $1,315. Finally, 2020 will see an average rent of $1,376 according to the prediction models used by KC Sanjay, senior real estate economist at Axiometrics.
The rise of Austin rents is because of Austin’s job growth and population growth, as well as its relatively low supply of apartments. It’s also driven by the fact that there will be less renters converting to owners in the next few years, particularly in 2019 and 2020, because of an increase in mortgage rates, the rise of home prices because of the low supply, and the debt of renters who would like to become homeowners.
While 2016 saw a lower than usual rise in rents, the forecast is for the next three years to return to the high levels of rent seen in the years 2010-2016.
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