Austin Apartment Finder
Apartments - The New American Dream?
Apartment living is becoming more popular among households who could otherwise afford to buy a home according to this NMHC presentation.
Early in the 1900s, apartment living was considered very chic. American cities were high density, pedestrian friendly areas. But the arrival of new transportation systems & evolutions in the mortgage system made it possible for families to leave the cities. After World War II the American Dream came to be defined as owning a home of your own, usually a single family detached home.
Now it appears the pendulum is swinging back to favor apartment living. Today, fully 15 percent of households rent an apartment in a building with five or more units. Plus the number of apartment renters is growing. In 1999, the number of people who rented apartments in buildings with 5 or more units was up 2.2 percent, while the total number of households grew just 1.4 percent.
Not only is the number of apartment renters increasing, but so is the profile of who rents apartments.. Renters are becoming older, more affluent and more educated. For the last 2 years, the fastest growing segment of apt renters was households earning over $50,000.
These households are part of a growing number who now choose to rent an apartment for lifestyle - not economic reasons. Nearly 40 percent of renters surveyed by Fannie Mae in 1999 said that buying a home was not an important priority or not a priority at all.
Why the sudden interest in apartment living? Changing demographics, new public policy initiatives, evolving lifestyles and changes in the apartment industry are working together to increase apartment demand,
Demographic Changes
The profile of the American population is changing, and some of these changes are helping to boost apartment demand.
2 of the fastest growing age groups over the next 10 years (people in their mid-twenties and empty nesters in their fifties) are two of the groups most likely to prefer apartment living. After more than 2 decades of declining in number, the population in the traditional primary renting years (age 20-29) is expected to increase 11 % between now and 2010.
The 2 demographic factor at work is the shakeup in the makeup of what constitutes the "typical household." In the past it was traditionally a married couple with children. But these households have been declining in number since the early 1970s, and now account for just 1/4 of all households.Taking their place are a growing number of non-traditional households who are more likely to choose apartment living - childless couples (DINKS), people who live alone and non family/ nonrelated households. (roommates) In fact, in the 90s, 2/3 of all new households were headed by single adults or single-parent families.
Public Policy Influences
The 1997 Tax Act profoundly changed the rent versus buy decision by making the first $500,000 ($250,000 for single filers) of capital gains on homes sold by joint filers exempt from tax. Without the prospect of a huge tax liability, more homeowners are free to consider renting. Studies show that apartment demand could increase 10 percent over the next several years due to this tax law change alone.
On the supply side, the new interest in smart growth is making it easier to get new apartment construction approved in urban areas. Cities realize that the lifestyle renter market is a key market to target in trying to recruit middle- and upper-income households to return to the downtown area, and they are doing their part to facilitate new construction of high end apartments.
Financial Incentives
Many households opt to rent so they can invest their money in the stock market instead of in a home. Others want to be able to move from one job to another without incurring the cost of selling a house so they are choosing apartments
Evolving Lifestyles
In today's hectic times, there are 3 key reasons why households that would not have previously rented are now considering apartments:
(1) desire for hassle free living;
(2) the superior amenity packages available in apartments.&
(3) financial reasons.
Hassle Free Living
Time-pressed young professionals looking to simplify their lives and shorten their commutes and empty nesters ready to shed their house-related chores and move closer to entertainment, restaurants and shopping are helping to fuel apartment demand.
Superior Amenity Package
Apartments have evolved and now, in many cases, offer a package of services and amenities that cannot be easily or affordably replicated in a single family house. Apartments of today bear very little resemblance to those built in the 70s and even in the 80s.
Newer apartments have added new amenities, new designs, new technologies, and a renewed emphasis on customer service in order to attract a new class of renters. Many of apartments nowadays look and feel more like single family homes. They tend to be larger, and they include finishes such as attached garages, built-ins, entertainment centers, alarm systems, granite countertops, Jacuzzi type bathtubs, crown molding, fireplaces and much more.
For today's residents on the go, a single call to the concierge onsite can arrange pet care, babysitting, housekeeping, grocery shopping or an evening on the town. Broadband Internet access, fitness centers, cyber-cafes, business centers, movie theaters, billiard rooms and more make apartment living very competitive with single family homes.
Many of today's apartment owners are large public and private firms who have invested in properties for their long-term potential and not their short term tax benefits in contrast to the mom and pop apartment owners of the past. They have made getting and keeping residents a highly professional endeavor, instituting things like 30-day no risk trial periods, flexible lease times, 24-hour maintenance guarantees, even rent-to-own programs.
There are a growing number of empty nesters, young professionals, single households, single-parent households looking for a simpler lifestyle, and they are choosing apartments over houses. In the future, we can expect residents to continue to get more sophisticated and more demanding of amenities. And we can also expect apartment owners to provide new and innovative services, designs and technologies to meet the needs of these households.
Rentals in Austin Texas -
Austin Texas Apartment Rental Demographics and Trends:
Austin Texas Apartments: Amenities like Broadband Internet access, attached garages, built-ins, entertainment centers, alarm systems, granite countertops, Jacuzzi type bathtubs, crown molding, fireplace, fitness centers, cyber-cafes, business centers, movie theaters, Demographics, single family detached homes, roommates, households headed by single adults or single-parent families, capital gains on homes sold
