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Apartment Investing - Austin Multifamily Apartment Market

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austin g265c743a9 640Investors are often searching for insight that provides stellar buy recommendations for commercial real estate. Competition is fierce in areas where above-average rates of return exist. Direct Apartment Lenders shares information about the red-hot Austin multifamily apartment market.

Living in Austin, Texas 

Austin has ranked among the top 10 places to live in the United States for the past few years. The city is also the number one place to reside in Texas, according to the U.S. News & World Report.

WalletHub ranks Austin, Texas within the top 30 markets on its list of Best Places to Rent. 

Yahoo Finance ranks Austin as the hottest housing market in 2021. 

Many individuals and families from around the country are moving to Austin, Texas. 

A thriving job market is poised to grow much stronger with the arrival of several major U.S. employers.  

Google already has a campus in Austin, and several well known companies, such as Apple, Oracle and Tesla are building new offices in Austin, Texas.

When job opportunities arise with benefits and above-average wages, qualified applicants will usually follow.  

Austin has a lot of entertainment venues and things to do that will keep most folks very busy.

Additionally, Texas is known for high-quality barbecue ribs, beef, pork and chicken. Austin has all sorts of restaurants and fine dining establishments that offer a wide variety of cultural foods.

Sports fans will enjoy the year round environment that exists in Texas.

Major League Soccer team Austin FC and The Texas Longhorns are top sports attractions in Austin, TX. However, sports fans regularly cheer for local high school football teams and area college football teams, too.

Throughout Texas, sports fans cheer for the MLB Texas Rangers, MLB Houston Astros, NFL Dallas Cowboys, NFL Houston Texans, NBA Dallas Mavericks, NBA Houston Rockets and San Antonio Spurs, the NHL Texas Stars and many minor league teams.

Austin is a great place for people who are eager to experience outdoor living.

Average Rent for Multifamily Apartments in Austin, Texas 


According to the Austin Business Journal, about 16,000 apartment units are being built in Austin.

Recent data from Zumper reflects a rental rate of $1,513 per month for the average one-bedroom apartment. This represents a 27 percent year-over-year rate increase. 

The average two-bedroom apartment in Austin rents for $1,905 per month. This represents a 27 percent year-over-year rental rate increase.

The median three-bedroom apartment in Austin rents for $2,354 per month. This represents a 20 percent year-over-year rental rate increase.

In expensive areas, such as Downtown Austin, three-bedroom apartments rent for more than $4,200 per month. In Holly, similar apartments rent for $5,500 per month and for nearly $6,000 per month in Bouldin creek.  

In Austin, 61 percent of the households are occupied by renters.

Statistical Data for Austin, TX 


Austin had an estimated population of 961,855 residents on April 1, 2020, according to the United States Census Bureau. 

The above reflects an increase of 21.7 percent above the estimated population of 790,390 on April 1, 2010. 

In 2019, Austin’s median household income was $71,576.

Outlook for the Austin Apartment Market


The Austin apartment market is expected to grow in 2022.

Austin is gaining recognition as one of the top tech hubs in the United States.

Tech companies and professionals are enjoying lower costs in Austin versus Silicon Valley and other metropolitan areas.

With tech companies such as Oracle, Tesla and Apple planning for growth in Austin, it solidifies the need for nearby housing. 

A thriving rental market and a hot job market should continue to increase the demand for multifamily apartments in the Austin market.

Financing for an Apartment in Austin, Texas 


Investors who find attractive apartments for sale in Austin can leverage the costs with a stated income loan.

Many commercial mortgage lenders within the multifamily apartment market will require a borrower to provide personal bank statements and business bank statements for qualifying purposes.

However, attractive financing for apartment buildings in Austin, Texas is available to investors, where the subject property has enough rental income to meet certain debt service coverage ratios.

Without a ton of documentation, investors can quickly obtain funds to purchase or to  refinance multifamily apartment buildings. 

Applying for a Commercial Mortgage Loan in the Austin Apartment Market


Getting the funds for a commercial mortgage loan is important for an investor who needs financing right away.

Direct Apartment Lenders immediately reviews commercial loan requests that are submitted online.

Within a few days, a loan decision could be issued. Typically, our funding process is within four to six weeks for an apartment loan.

Speaking with one of our lending professionals about financing for a commercial property is the best way to gain more insight about our apartment lending programs.

Contact Direct Apartment Lenders today to discuss any multifamily loan scenario.

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