A lot of things impact rent: building size, amenities, housing availability, proximity to central areas and most of all location. When looking nationally the rent variations from city to city can be extreme – especially when comparing historically high-priced areas with that of relatively new up and coming areas. It comes down to the area’s demand – rent has no cap and will go as high as the market allows.
That demand and subsequent price hike can become inflated if a location, mainly metro and city areas become overpopulated. Texas-based property developer Marcus Hiles shares his experience of market inflation by adding, “Take a place like New York City, the introduction of new housing is much more rare than a place like Austin, Texas. NYC’s available space for new property development is scarce and comes at a premium most average renters can’t afford nor makes for a smart decision for investors and developers.”
A new report by online authority in the rental industry, Zumper highlights this push-pull factor that continues to fluctuate the median rental rates nationally.
According to their data, today’s most expensive rental markets are those you would expect: San Francisco, NYC, San Jose, LA and Boston.
But these aren’t the only cities attracting today’s renters. One of the most buzzing cities as of late, Texas’ metroplex of Dallas. Despite being ranked below the national median for rental prices, the city is growing much faster than all of the most expensive markets reported by Zumper.
With more land mass, accessibility and ultimately affordable rental options, the area is staying in line with the means of renters today and it’s getting noticed. But Dallas isn’t the only Texas city flying below the average cost of rental markets. Collectively Houston, Fort Worth and Austin all rank as affordable locations for rental residents, but Texas isn’t historically known as a top place to live so why move there?
Affordability isn’t the only thing renters need to consider when deciding on the best location- an area’s employment opportunities, education system and community development are all critical factors. Where in some areas like Boston whose education system and place in tech and pharmaceutical industries drives up its overall rental rate it seems Texas’ top cities aren’t being impacted in the same way (for now anyways).
With some of today’s most thriving businesses, industries and talent networks located across Texas and performing higher than most other states it would seem areas like tech-haven Austin and longtime Oil industry dominant Dallas should have the rent to match. Especially now that the rate of growth in Texas has outpaced any other state in the country while also backed with new industry development and investment in the community to match.
“These lone star cities have something other, more expensive housing markets do not. Population and land development capacity exists – in abundance in some areas – and can accommodate growth better than most top locations without making its residents pay the price,” adds CEO of Western Rim Properties Marcus Hiles, who has developed more than 300k property units in the state alone.
This is a trend many rental experts and Texas residents know won’t last. Where there is affordability there may not be opportunity; this is why Texas continues to attract populations and expand its place in the national economy in a way sustainable enough for those who rent in Texas to stay in Texas.