Rents are falling in Austin \ stacker news ~econ

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1257 sats \ 22 comments \ @zuspotirko 6 Jan econ

So it turns out that supply and demand actually do work. Who would have thought. Building building building payed out for developers in Austin. And for renters too.

Here is an anecdote about a woman from Austin getting her renewal for $200 less than the previous year. Probably the first time during her lifetime.

Another anecdote are these offers where landlord offer the first 8 weeks of renting for free:

Discussion about this offer on Twitter

Third anecdote: A suburban home on Zillow:

source

Longer article about that topic: Rent prices drop more than 12% in Austin

view all related items

242 sats \ 1 reply \ @cascdr 6 Jan

I moved from a worse part of town to a better one. The old place tried to play hardball with me and increase my rent for the fourth or fifth time. It had gotten ridiculous so I tried to get them more aligned with the market. They said "we don't negotiate down". I said ok buddy, you can have some of the donut or all of the hole 🍩🇮🇹🤌. Looks like you want the latter!

I cut my rent like 30% by moving. Granted it's a slightly smaller space but it's way more walkable, better location, equal or better amenities. It probably depends on who you talk to.

0 sats \ 0 replies \ @Bell_curve 6 Jan

Landlord tried to increase rent in this market? Good job moving

375 sats \ 5 replies \ @k00b 6 Jan

We negotiated a YoY decrease of ~10%. We like the landlords a lot but I still think we are overpaying.

21 sats \ 1 reply \ @nout 6 Jan

And did you solve the issue with the pool parties every night? Or is this a different place now?

89 sats \ 0 replies \ @k00b 6 Jan

New place!

21 sats \ 0 replies \ @zuspotirko OP 6 Jan

Holy shit, 10% is huge. I could only dream.

0 sats \ 1 reply \ @Bell_curve 6 Jan

Didn’t Austin crackdown on AirBnb?

12 sats \ 0 replies \ @k00b 6 Jan

I don't know. I remember you linking me to something, but I'd guess it was performative more than anything.

121 sats \ 1 reply \ @nichro 6 Jan

Wild. It never occurred to me that was even possible. I figured rents would just freeze, but never decrease.

Is it as simple as the landlords now competing for renters to not have vacant units?

edit: this is never happening where I live for the foreseeable future. Even if things radically changed it would probably take a decade or two for supply to catch up

20 sats \ 0 replies \ @cascdr 7 Jan

Compared to when I got here Austin feels like its a lot less lively. The tech recession hits hard. When you dont have girl bosses in the pool working remote and making six figures in fake money to pump your bags the reality sets in. I think this even more than supply coming online affects pricing.

30 sats \ 3 replies \ @gmd 6 Jan

Building building building payed out for developers in Austin.

Are the developers and retail investors not losing money with the decrease in rental prices?

192 sats \ 2 replies \ @zuspotirko OP 6 Jan

Imagine you were an ice cream seller. Would you rather sell one ice cream for 20ct profit or two ice creams for 2x15ct profit?

Now imagine in the rest of the country the government stepped in making it illegal to sell two ice creams.

12 sats \ 1 reply \ @gmd 6 Jan

Sounds logical. Just sounds like a lot of development / real estate twitter is talking about negative returns in Austin real estate but they're probably levered up irresponsibly.

But probably that's the finance guys vs the guys doing the building

33 sats \ 0 replies \ @nym 6 Jan

It’s been growing fast for the last few years.

38 sats \ 0 replies \ @SimpleStacker 6 Jan

So it turns out that supply and demand actually do work.

Yep. It just sometimes takes time. Especially in real estate where there's a long time to build new supply.

And for cities that don't have much land to build, and regulations up the wazoo about how high you can build, sorry your rent is gonna stay high.

100 sats \ 1 reply \ @AlCoHoLnAcEtOnE 7 Jan

Don't be surprised if Bitcoin has anything to do with this, Austin is practically the Bitcoin capital of the U.S

0 sats \ 0 replies \ @Car 7 Jan

few

3 sats \ 0 replies \ @PictureRoom 6 Jan

Very interesting, thanks for sharing. Been considering Tx for a while and Austin seemed to be a great place. Played a great show there once.

0 sats \ 1 reply \ @Bell_curve 7 Jan

Your x cancel link is missing the L in cancel

Update: The x discussion is in French!

According to the interview occupancy is 84 percent. Landlords need 90 percent for stabilization. 2021 was an outlier

0 sats \ 0 replies \ @Bell_curve 7 Jan

https://www.kut.org/austin/2021-03-10/austin-rent-prices-have-dropped-ever-so-slightly-some-renters-see-a-chance-to-negotiate

This article is from 2021. Maybe the signs were there already

0 sats \ 0 replies \ @Bitcoiner1 6 Jan

Any feedback about the market in Miami?

0 sats \ 0 replies \ @nitter 6 Jan bot

https://xcancel.com/nickgerli1/status/1856456514715713806