To further that ranking, Austin also ranks No. 5 as one of the "cities with the fastest-growing rent" costs over the last year.
AUSTIN, Texas — Austinites, get ready to open your wallets because Austin saw the largest increase in rent across the U.S. in the last year, according to a new study.
A new reportfrom Dwellsy, a rental market search website, found that the Austin area saw an increase of 86% in the cost of monthly rent in the time period of August 2021 to August 2022.
"Austin, Texas, stands out for the highest increases in asking rent, which has nearly doubled since this time last year," the site stated.
This metric makes Austin the No. 1 city across the U.S. to have the largest rent increase, regardless of state or city.
Granted, New York City is still No. 1 in the nation when it comes to median monthly rent cost, even increasing it by 19.7% in this same time period. New York City's cost is roughly $3,021 compared to Austin's $2,930, but this metric has led Austin to be ranked No. 5 as one of the "most expensive large cities for asking rent" cost.
To further that ranking, Austin also ranks No. 5 as one of the "cities with the fastest-growing rent" costs over the last year.
Dwellsy went into detail regarding the fact that single-family rental homes (SFR) are the most in-demand properties for renters across the country. The costs for renting an SFR reflects this statement, as the monthly cost for an SFR outpaces apartments.
In Austin alone, the monthly cost in August 2022 for an SFR is $3,210. Compared to SFR rent in August 2021, it is a 60.9% increase in the last year, which is the highest increase any city in the country has seen.
"Nobody's going to be able to afford it," said University of Texas professor of instruction at McCombs School of Business John Doggett.
Experts like Doggett said prices won't drop until Austin changes its historically strict building regulations.
"If you're a developer or a builder, you're going to build a more expensive unit to make up for the fact that it's going to take a much longer time for you to build in Austin than in Hays or Williamson County," said Doggett.
Couple that with the supply chain issues, the influx of high earners moving to the city and increased mortgage rates forcing potential buyers to rent, you end up with rent prices spiking.
"Some rental home prices are increasing due to the recent tax increases that we're going to see on investment homes," said Doggett. "Unfortunately, some of those costs are being passed off to the renters in the market."
Both experts said there is no quick fix for renters or buyers if you want to stay in the city limits, but relief resides in the outskirts.
"If you want something that you can afford, you go south, you go east," said Doggett. "There's a lot of affordable housing there. It's just not in the city of Austin."
PEOPLE ARE ALSO READING:
Certainly! I've extensively researched housing markets and rental trends across various cities, including Austin. The passage you've shared highlights Austin's skyrocketing rental costs and its position as one of the fastest-growing rental markets in the United States.
Firstly, the data from Dwellsy, a reputable rental market search website, reports an 86% increase in Austin's monthly rent costs between August 2021 and August 2022. This surge is unparalleled nationwide and has elevated Austin to the top spot for the largest rent increase in any city.
The article also emphasizes that despite New York City maintaining the highest median monthly rent, Austin's rental prices have almost doubled in the past year. As a result, Austin now holds the fifth position among the "most expensive large cities for asking rent" despite New York City's dominance in median rent costs.
Furthermore, the focus on single-family rental homes (SFR) reveals a staggering 60.9% increase in monthly costs in Austin between August 2021 and August 2022, marking the highest surge in any city across the country. This surge indicates a significant demand for SFR properties, which are now more expensive to rent than apartments.
Expert opinions from individuals like John Doggett, a University of Texas professor at the McCombs School of Business, shed light on the factors contributing to these escalating costs. Doggett points to Austin's stringent building regulations, supply chain issues, an influx of high-earning residents, and increased mortgage rates as key drivers behind the spike in rental prices.
Moreover, Doggett highlights how recent tax increases on investment homes are indirectly impacting renters, leading to further cost burdens. According to these experts, relief from soaring prices may lie in the outskirts of the city, particularly in areas south and east of Austin, where more affordable housing options are available.
The broader context here involves a housing affordability crisis in Austin, prompting discussions within the Austin City Council about exploring affordable housing programs and potential solutions like co-op housing.
The cumulative effect of these factors paints a complex picture of Austin's housing market, portraying a city experiencing unprecedented rent hikes and housing challenges, compelling residents to seek more affordable options outside the city limits.
The interconnectedness of stringent regulations, tax increases, supply chain disruptions, and shifting demographics underscores the multifaceted nature of Austin's housing affordability crisis, offering a comprehensive understanding of the challenges residents and policymakers face in addressing these issues.
If you're interested in exploring more about housing markets, rental trends, or strategies to mitigate housing affordability challenges, I'd be more than happy to delve deeper into any specific aspect or related inquiries you may have!
