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    Reports: Austin-Round Rock 15th in US for apartment vacancies; 66% of home listings ‘stale’

    By Cora Neas,

    2024-06-12

    https://img.particlenews.com/image.php?url=06rFpb_0tpGUdKm00

    AUSTIN (KXAN) — The Austin-Round Rock Metro area is 15th in the nation for vacant apartments, according to a report from construction industry blog Construction Coverage .

    The report states that 9% of apartments in the Austin metro are vacant. This is up since 2023, when 7.3% of apartments were vacant.

    All of Texas (9.2%, fifth highest for U.S. states) and Houston’s metro (10.9%) both have vacancy rates above the Austin metro, but San Antonio and Dallas-Fort Worth areas are slightly under (around 8%).

    The report’s author describes a low vacancy rate as having the potential to push rents down due to greater supply. Zillow and Rent. both claim that the Austin metro has seen a slight decrease year-over-year in median monthly rents, compared to 2023.

    However, median rent in Austin and the rest of the country remain above pre-pandemic levels despite the rise in vacancies. The share of cost-burdened renters in Austin stayed roughly the same as in 2023 at around 48%, according to the report.

    2023 Study: Austin has highest cost of living in Texas

    KXAN reached out to the report’s author with questions about the report.

    The Austin Apartment Association tells KXAN that it expects the city to see 26,000 more units become available by the end of 2024.

    “As more supply comes online, occupancy levels decline – and Austin is no exception, with industry data showing occupancy levels falling as more apartment units were delivered last year and in 2024,” the association said in an email. “While occupancy levels at properties are impacted by a variety of factors, including the area’s business environment, generally we see that when jurisdictions prioritize housing, renters have greater choice and affordability”

    High prices causes listings stall

    Another report, this one from real estate company Redfin , shows that 66% of the metro’s house sale listings are “stale,” meaning that the listings were on unsold after 30 days.

    2023: Austin housing market ‘cooling’ since pandemic

    This is stable from last year’s percentage, with an increase of just a half of a percentage point. It is above the U.S. market average of 61.9%, but is below the national year-over-year change.

    Much of this is due to higher mortgage rates compared to 2022 and Texas’ “rapid construction” creating a large supply of homes, according to the report.

    Another factor, likely felt by many hopeful homebuyers, is that wages are insufficient to consider buying a home in the city. A recent study from First American Financial Corp. shows Austin residents’ buying power is below the median sale price for local house listings, KXAN previously reported .

    Dallas’ metro saw the largest year-over-year increase in stale listings (7.5 points), but is still under Austin’s metro (60.5%). The Houston metro matched Austin’s year-over-year change, but its share (64.4%) was still less than Austin’s share.

    San Antonio was the only Texas metro to grow faster than and surpass Austin’s share (68.4%).

    Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

    For the latest news, weather, sports, and streaming video, head to KXAN Austin.

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