The supply of apartment units coming online in the Greater Austin area—and in the Cedar Park and Leander area—is outpacing the demand for those types of products.
According to numbers from Apartment Data Services, which provides information on multifamily properties, rental rates in the Cedar Park and Leander ZIP codes have fluctuated slightly over the past two years. While rental prices have gone up and down, the annual growth trend has been a 0.18 percent increase in rates from July 2016 to June 2018.
ADS President Bruce McClenny said rent prices have not changed much in the last two years because of the number of apartment units coming online.
According to Apartment Data, three out of the past four years have seen more than 11,000 units added to the Austin area market annually. McClenny said the area market tends to operate better at delivering 7,000 units per year.
“There’s just been too many units delivered, so there’s been an oversupply of units,” he said. “So when that happens, the prices go down or stay flat, which is a good thing for renters.”
McClenny said the Austin area as a whole is seeing this trend in fluctuating rental prices.
“It’s kind of like you’re sailing a sailboat where you’re tacking, you’re going out and coming back,” he said. “As an operator, you’re testing if you can get these rents, so you might pop them up a bit but you might bring them down next month because people responded to that rent increase.”
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