We’re hearing reports of soaring rents in high-end downtown Austin rental buildings like the Monarch, Ashton, and AMLI. In one case, a tenant’s recent renewal resulted in a 30% increase in the market rate and the elimination of concessions. In total, this meant a rent increase of more than 50%.
While downtown rental properties struggled to find tenants a few years ago, all of the major buildings are now full. Vacated units are re-leased with amazing speed — turnovers now average just a few days between tenants. With many new residents and few new units, supply and demand is pushing rents higher very quickly.
With no new projects in site, rents are likely to continue to in crease as new people migrate to Austin and financing for condo buyers remains difficult to obtain.