Austin Metro Leasing Market Update - Peak Season Winding Down from Treaty Oak Property Management ATX

 Hi George-Vance - 

School is about to begin and peak leasing season is winding down! We’re ready for some cooler weather, and we hope that you’re staying out of the heat.  As always, I have been monitoring our investor and rental market activity and am excited to share what I'm seeing this month!

July 2023 Duplex and SFR July 2023 stats (below) show a very substantial year over year increase in ‘Average Days On Market’. It is taking a lot longer to lease properties right now. This is due to the heavy saturation of rental inventory available this year, noted in the ‘New Listings’ row in the graphic below.

Other noteworthy observations:

• -4.27% Median Sold Price for Duplexes
  
• Another month of  0% change Median Sold Price for SFR
  

These stabilized and slightly downward rates are reflective of my experience this leasing season, so far. Lease rates stayed the same or slightly below what we were achieving last year, for those units that did experience vacancy. The main goal for landlords always is to eliminate vacancy, and pricing competitively is often the most effective way to do that.

It’s AUGUST now; is there still rental demand? YES! The economic growth of Austin and surrounding areas provide a constant demand for rental inventory. This demand fluctuates, and is stronger in the Spring and Summer (as portrayed in the graphic above), but demand does not stop in the Fall and Winter. Life calls for change, and many people find themselves moving to Austin regardless of the time of year or season. Understand that pricing competitively < aggressively in the slower months is the key to eliminating vacancy.

Always set yourself up for shorter vacancy periods by expiring leases that begin in the Spring to early Summer when rental demand is at its highest. For those leasing rentals NOW through the end of the year, the strategy should be to expire the lease in Spring or Summer 2025. Doing this helps eliminate costly vacancies for landlords!

Quick Maintenance Tip: Remind tenants to conserve energy by unplugging electronics and countertop appliances, turning off lights and keeping blinds and windows closed. Do not turn the air conditioning up during the day and turn down during the night, as this can cause it to work harder. Keep thermostat set to a comfortable temperature so that it does not have to work as hard to regulate.

If you are a landlord, agent or a property owner with questions, please don’t hesitate to contact me! I would love to be a valuable resource for your successful landlord experience, or to help your clients achieve their investment goals.

Have a great week, and I will be back with more in September!