Austin Real Estate News: What’s Trending – May 2016

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Rentals. Is now the time to look for rentals in Austin? The first quarter of 2016 showed us a steep price increase in rentals. From on-campus rentals, which rose 13% to an average of $990/month, to Windsor Park, which increased 12% to an average of $900/month. This increase was only from last winter’s prices and is also the fastest increase ever seen in the capital city. Considering the average Austin rental price is $1,150/month, it’s still a decent time to rent. Aspiring Old West Austin and Zilker Park renters will be pleased to hear their prices have dropped to an average of  $1,600 and $1,460 per month.

Residential Price Tag. Other United States cities are dropping their housing prices, but Austin is not letting up. Due to the lack of supply in Austin real estate, prices are skyrocketing – making it a good time to be a seller! There’s been an 8.7% increase in the cost of average owner-occupied homes – that comes out to $271,875. An even bigger increase was made in the year-over-year average cost of investment properties. Through its 12% increase, that average is now at $228,937. Note: researchers and real estate agents alike say that more inventory can help balance the extremely seller-sided Austin real estate.

Live Comfortably. Ever hear of the budget rule: 50-30-20? Recently, a study has shown that this simple formula is all an Austin resident needs to live comfortably. For those not familiar, let me break down this rule for you: 50% for essentials, 30% for discretionary spending, and 20% for savings. The median household income for Austin stands at just over $55,000 per year. Using the 50-30-20 formula, you could have a little over $1,000 saved by the end of the year. Happy budgeting Austinites!

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