Rental Market Update – January 2020
There’s no denying that the rental market is tight right now, especially in the Austin area. The big question is if the majority of renters are Millennials or people between the ages of 18 and 25? The answer to this question is no.
In today’s world, there are people from every generation who are renting, this includes Baby Boomers because this generation is living longer than ever before thanks to the wide variety of health care options that are available to them in North America.
Where is the major of demand for rental properties coming from though? As of January 2020, most of the demand for rental properties (40%) is coming from people who are between 25 and 44 years old.
After the 25-44 age group, it’s estimated that a fifth of the demand for rental properties nationwide is coming from renters who are in the 45-64 age group.
What’s the Typical Renter Income Look Like?
Renters in today’s market earn different incomes. It’s possible to find renters that are making $25,000 per year in some areas nationwide but it’s not uncommon to find other renters making $75,000, $100,000 or more per year.
People who are in a higher income bracket often are able to rent properties that offer more amenities and as of January 2020, it’s the renters in the $50,000 to $75,000 per year income bracket that most builders are making their rental communities for.
It’s a deep rental market for sure and that’s not likely to change any time soon. Thankfully, developers in cities that encourage building are able to develop plenty of new apartment communities to keep up with the demand for rentals.
As of 2020, most developers are building their communities for people who are in the $39,000 to $99,000 income range. These B and C properties are popping up all over Central Texas and they offer a fresh take on apartments. What’s even better is that many developers are also working on building apartments that have fresh floor plans that go beyond the traditional box floor plans of apartments that were made in years past.
What’s Coming Up for The Multifamily Market?
The multifamily market is continuing to grow strongly, especially in the state of Texas so 2020 should be another year where supply and deliveries of new multifamily properties continue to meet demand statewide.
To learn more about the Austin Texas real estate market, or to speak with me about buying a home contact me today by calling (512) 944-7378 or click here to connect with me online.