New data shows that the pandemic did not have a material impact on rental demand in Texas, but prices are stagnating.
According to the Abodo housing market, the average rent for a one-bedroom apartment in Texas fell by $ 7 to $ 1,012 from $ 1,019 in April through June 2020. In contrast, the national median rents for one bedroom increased about 1 percent, increasing slightly from $ 1,088 in April to $ 1,097 in June.
The one- and two-bedroom rental markets in Austin in the second quarter were basically flat. Single-family homes fell $ 6 from an average price of $ 1,297 in April to $ 1,291 in June. While two bedrooms saw slight movement in the second quarter, they stood at $ 1,563 in June, a 1.3 percent decrease from the mid-April price of $ 1,582.
According to Abodo, Austin’s popularity has offset the negative impact of the COVID-19 rental price as people still flock to Austin looking for housing options. Nevertheless, it is positive for potential tenants in the capital to see stable prices.
The Texan home rental market remains stable for several reasons:
- In the midst of the pandemic, many people remain in detention and have postponed their move plans for the time being.
- Some residents had to sell houses that they could no longer afford and therefore entered the rental market.
- Landlords are reluctant to increase rents when rent accumulation can be an issue during COVID-19.
- Some new housing developments have slowed down or halted construction.
Overall, property managers and landlords are facing a new normal in life, especially in this virtual world during the COVID-19 pandemic, explains Abodo.
However, the fall in supply has made up for any cases of falling demand and therefore the market is currently stable. If the economy doesn’t improve, mortgage lending could dry up quickly and disrupted housing construction could stay that way.
In the coming months, demand may be further dampened by lower housing supply, suggesting continued stagnation in the housing rental market in Austin and Texas as a whole.