Austin renters face soaring costs in ‘extraordinary market’ (houses, neighborhoods)

[verybadgnome]

The city council can help by delaying or repealing the accessibility requirements for new construction.

[CptnRn]

Local economists have been predicting this for the last 3 years, it's not like this should be any surprise to anyone who has been paying attention.

Angelou predicts double-digit growth rates in real estate properties for the next three to four years

Angelos Angelou 2012-2013 Economic Forcast

Worst Housing Markets For The Next Five Years

2011-2012 Economic Forcast for Austin Metro Area

Apartment building lagging behind demand...

From the 2011 forcast:

http://www.angeloueconomics.com/docu...orecast_HR.pdf (broken link)
Angelou Economics - News [Presentations]

Page 15 in the second document talks about the Residential real estate market.

Quote:

[Trainwreck20]

Lol, from the one about the 15 worst housing markets:

Austin-Round Rock-San Marcos, Texas

Annualized expected growth from 2012 - 2017: 1.0 percent

Home prices in the Austin-Round Rock-San Marcos area have fallen 1.5 percent since the first quarter of 2009. It also has a median home price of $193,000.

The metro has a population of 1.8 million, a relatively low unemployment rate of 5.9 percent, and a median family income of $72,800.

So, what kind of average decrease do we have to see to match that 1% annualized growth?

[verybadgnome]

Originally Posted by 10scoachrick

Who is we? The CoA is not in the business of building apartment complexes...I don't think. I recon most landlords/mgmt companies right now are happy to raise the rent without improving the properties...partly to cover the higher taxes, partly to enhance the bottom line. How would lower occupancy rates and lower monthly rents benefit them?

No COA does not build apartments but they approve the site plans and permits. And there will always be other landlords/mgmt companies wanting to get a foothold in the Austin market and be willing to take a smaller profit to do so. Unless their is collusion by them (highly unlikely) the system should work.

Not a huge influence on the larger housing market but council members like Riley are advocating loosening the rules on developments like the skinny high rises and micro apartments.......So then it is more of a situation of the gov't protecting the interests of current residents balanced against flexible rules for developers that cater to Austin's growing population. Not everyone can live with their folks!

[brattpowered]

Originally Posted by verybadgnome

So then it is more of a situation of the gov't protecting the interests of current residents balanced against flexible rules for developers that cater to Austin's growing population.

I don't understand what you mean, seeing as the majority of Austin's residents are renters and many have been here for a very long time.

[gpurcell]

Austin (city) QuickFacts from the US Census Bureau

Almost half of Austin's residents live in owner-occupied units...and that number is artificially deflated by the transient student population who are "residents" in name only.

[brattpowered]

Right. Majority means over half...

[Spacepup]

I was shocked when I got a lease extension offer without a rent increase. I'm hoping it is just a "you are a good tenant and pay early" deal but I'm still not entirely sure that the property manager realizes that we legally renewed the lease for another year via the email exchange we had because he's... not exactly on the ball on such matters. Or really any property management tasks beyond depositing checks. I guess I'll find out later this month!

I have been seeing a depressing number of people on the listserve looking for rentals. Those with fixed incomes are especially hard hit.

Originally Posted by austin-steve

So, thank you city leaders for your stupidity, lack of foresight, and ignorance. And good job voters for continuing to put the same people in charge, year after year, who all think with the same faulty logic. Maybe when we get a 10-1 we'll get some real diverse thinkers on city council instead of all beholden to the central Austin, ANC (Austin Neighborhood Council) mindset.

Meanwhile, the affordability train has left the station. The blue light was the weirdness, and the red light was the time.

Steve

The city council has served the wants and needs of voters in city council elections quite well. It just so happens that only ~3-5% of eligible Austinites were voters in those elections and they are concentrated in certain geographic areas. I think the November elections will have a bigger effect than 10-1 (although that won't hurt).

As it is now our leaders are more interested in looking like they care and are happy to propose a statue commemorating the homeless while enacting policies that prevent the construction of 10,000 units to house people on the brink of homelessness.

[pjoseph2]

This is part of the Fed plan. To inflate everything and make a bounty for the local taxing entities. eCONomic boom all around.

Interest rates have been artificially suppressed for ~6 years now. If interest rates are allowed to normalize, the market will find equilibrium.

Austin, of course also has had the perfect storm. Tech jobs boom, cool vibe and overall good city to raise a family. The traffic craziness alone makes me want to move someplace sane.

It appears TCAD increased mostly everyone's appraisals by the maximum allowable 10%. Even a monkey could had done that. Why do they even exist as an entity?

[scrappygurl]

We will be moving there from NYC and aren't wealthy its for work reasons, and we didn't think it was going to be that expensive. I can't see paying that much rent, how are houses in commuting areas of Austin? Is it as overpriced as well?