Austin, TX
Austin real estate market wrestling with excess supply of apartments
AUSTIN, Texas — New research shows that the state’s real estate markets are still feeling the effects of recent building booms, especially in the capital city.
That’s just one of the many factors driving markets that an outlook from the Texas Real Estate Research Center at Texas A&M University explained. Daniel Oney, the center’s research director, said that while Austin is only approximately 13% of the apartment market in Texas, they have 22% of those unleased apartments. He explained that a developer in Texas will typically start a new apartment every time there are two new households in a market, but now they have an oversupply.
“Austin, for a while there were four apartments for every household that showed up,” Oney says. “So they were, they were building apartments at eight times the historical rate.”
While the leasing cost of some places has gone down in recent years, some rents remain pretty high, but renters can continue to see some concessions such as free gym memberships and other move-in deals.
Oney highlighted that this trend is also depressing rental rates for some houses.
“Someone that may have the financial means to rent a nice home, may decide ‘I can rent this brand-new shiny apartment and get six months’ rent free, so maybe I’ll just rent the apartment for a while longer,’” explained Oney. “So we know that landlords of single-family homes are also having to not raise rates at a minimum.”
Based on the current leasing speeds in Austin, researchers like Oney estimate it would take approximately three years to absorb all the existing units if no new apartments were added to the market, but that timeline, of course, depends on job and population growth.
Austin, TX
City Updates Residents on Status of Project Connect
The City of Austin’s mass transit project Project Connect was the subject of conversation at last week’s Movability breakfast at St. Edward’s University.
Movability is the region’s transportation management association, and it works to promote connectivity in the Central Texas area. A city blog recapped the Feb. 4 annual breakfast, during which featured Capital Metro president & CEO Dottie Watkins and Jennifer Pyne of the Austin Transit Partnership.
During the event, Pyne and Watkins both answered questions about the current status of Project Connect and the moves Capital Metro and ATP are making in tandem to bring the vision to reality.
According to Pyne, the light rail project received a Record of Decision a few weeks ago, which is a milestone for the project. That means it has cleared the end of the environmental impact statement process for projects seeking federal funding.
“It’s really a green light to take the project to the next level, to do further design, to really advance the work,” Pyne said. “We are in a position to start to do utilities relocation. So, it’s really moving to the next phase.”
Pyne said APT is pursuing grant funding from the New Starts program, which is part of the Federal Transit Administration and designed to support major capital investments. She estimated the city is approximately two years away from inking such an agreement.
That would mean construction starts in roughly 2027. “We’re bringing on some of our key partners, the construction contractors, and the final designers, coming on this year. We will be identifying a vehicle manufacturer later this year and getting ready to actually turn dirt,” Pyne said.
ATP is currently in three active solicitations with one for the light rail track, systems, and stations, and another team for operations and maintenance facilities. “We are also actively in a solicitation with railcar builders to bring those on,” she said.
Austin, TX
Austin Film Society Announces Grants for Short Films
Austin, TX
Carlton scores 17 points to lead No. 4 Texas past No. 18 Kentucky 64-53
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