Moving across the country — or even just
across the state — can be a huge decision. The
solemnity of saying goodbye to friends and
family, mixed with the excitement of starting a
new life somewhere else, can leave you at your
wit’s end. Making decisions about where and
how to live your new life can be downright
frightening. Finding a place to call home is
challenging in any city, but with a little knowledge and a little help, transplants to Austin
have some pretty good odds of doing just that.
THE APARTMENT MARKET
IN AUSTIN
Austin is one of America’s fastest growing
cities. Since the year 2000, Austin’s population has increased by over 150 percent. Why
are people flocking to Austin? Could it have
something to do with the fact that it was
named the 12th Best City to live in by Business
Week and Bloomberg in 2011? Maybe it’s the
36. 8 park acres per 1,000 residents, the great
air quality, or the low 3.8% unemployment
rate at a time when the national unemployment rate is 6.3%. Perhaps it’s the amazing
music, nightlife, and culture, as some
Austinites insist. Whatever it is about Austin
that brings flocks of new residents to the area
each year, one thing is certain: most of those
new residents will be renting apartments, at
least for their first six months to a year.
The cost of living in Austin is considerably
lower than most big cities, as well as the
national average. Sitting at a cost of living
index of 95. 4 (with the national average being
100), Austin is a very affordable place to live.
There are no personal or corporate income
taxes in the state of Texas, and the average
annual state and local taxes in Austin are
$3,440 — almost $600 below the national
average. Home prices, however, have increased
6.6% over the last two years, compared to a
national average of just 2.2%.
What does all that mean? It means that,
while Austin is an inexpensive place to
live, owning a home in Austin isn’t within
everyone’s reach. Renting an apartment is
an excellent alternative. Apartments offer
Austinites “lifestyle, convenience, and flexibility,” according to Tiffany Walters, Senior
Marketing Manager of Greystar Real Estate
Partners in Austin. In addition, apartment
renters can usually afford better amenities
than they might in a single family home.
So what can you expect to pay for an
apartment in Austin? “New one bedroom
apartments in the suburbs run about $885 for
a 650 sq. ft. apartment,” says Michael Reeh,
owner and founder of Apartments HERE!,
an Austin apartment locator service. Two
bedrooms range anywhere from $1,000 to
$1,400, and three bedrooms from $1, 200
to $1,800 per month. How much for a one
bedroom in Downtown Austin? Upwards of
$1,500 —if you can find one that’s available.
The Austin apartment market is a competitive
one. While the city’s population has boomed
for decades, available housing has not kept
up. Texas, as a whole, leads the country in
building new homes, contributing 20% of
America’s new homes (including apartment
and condominium units). Austin, however,
ranked 67th for new home construction
during the same period. In the last few years,
however, the city has been trying to catch
up with its population growth by building
apartment homes and residential towers. Of
over 723,000 houses, apartments, and condo-
miniums in Austin, more than 233,000 were
built after 2000, ranking Austin 5th in the
country for youngest housing stock. Apart-
ments are popping up all over Austin. In
addition to the 17,627 units that were under
construction in 2014, fourteen new projects
have already been approved by the city in the
first quarter of 2015, and another 24 projects
were submitted for site plan review. Austin’s
building boom just keeps rolling along with
no obvious end in sight.
CHOOSING THE RIGHT AUSTIN
NEIGHBORHOOD
Austin is known for being an eclectic city, and
Austin neighborhoods are no different. From
young and hip high rises, to suburbs with
great schools and parks, to customized luxury
apartments, Austin has it all. Choosing the
right neighborhood can be difficult, however,
for someone who is unfamiliar with the lay of
Austin land. “Many people immediately look
to downtown areas, but I encourage anyone
new to Austin to look at other areas,” says
Charissa Parkhill, Southwest Regional Field
Marketer for The NRP Group, a full-service investment, development, and property
management company. It’s important to have
an understanding of what Austin has to offer,
Photos courtesy of ARIA Steiner Ranch
