5 Texas Cities Where Rent Is Increasing Fast
Published on May 13, 2022Landlords
The state of Texas as a whole is one of the fastest-growing states in the country. While the state grows as a whole, various cities are growing at different paces. The growth depends on a variety of factors. It could be due to economic opportunity, location, and affordability. As these cities grow and the demand for housing increases, the rent increases as well. The rent increases depend on both the current housing supply as well as housing construction. Here are 5 cities in Texas where rent is increasing the fastest:
Austin has long been one of the fastest-growing cities in Texas as well as one of the most popular tourist destinations in the state. Demand for housing has always been high in part because of the number of college students throughout the city. The growing start-up industry has generated a lot of high-paying jobs which has contributed to the rapid rise in rent.
The year-to-year increase in the city for a one-bedroom is 32% while the year-to-year for a two-bedroom has increased by 17%. One reason for the increase in rent is the population growing from 709k to just over a million residents since 2010. The supply of housing has been unable to keep pace with the demand and unless construction of new housing increases, the trend will continue.
Since 2010 the population of El Paso has gone from 649k thousand residents all the way up to 679 thousand. Because of the population growth, the city has seen rents increase year over year dramatically. While it isn’t one of the fastest-growing cities in the state, the low supply of housing has contributed to the rapid increase in average rent. The year-over-year rent increase for a one-bedroom home is 23% while the increase for a two-bedroom is 15.5%. Without any changes in housing construction, expect rent increases to move in the same direction.
According to the census in 2020, the population of Arlington is 394 thousand. That’s up from 265 thousand residents in 2010. The increase in the population has also increased the demand for housing which has pushed the average rent up 13.8% for a one-bedroom over the last few years. It has also seen the average rent for a two-bedroom home increase at about the same pace at 13.1%. As demand for housing increases statewide, residents will continue to go where the homes are available making cities like Arlington popular places to move.
While the largest cities in Texas grab all the headlines when it comes to growth, it’s the midsize cities like Plano that have been increasing their populations and rents at a faster pace. Since 2010, the population has increased by 28 thousand residents going from 260 thousand, up to 286 thousand. The year-over-year rent increases have shot up as well, especially for one-bedroom homes where the average rent has increased 24%. Two-bedroom rents have increased rapidly as well, though not as much as one bedroom. Two bedrooms increased by 14.7% in the same time frame.
Similar to Plano, Irving is another midsize city that has seen a large population increase. Since 2010 the population went up by 41 thousand residents from 216 thousand to 257 thousand. Also similar to Plano, the rent for a one-bedroom in Irving has gone up dramatically year over year by 24.5%. Two bedrooms on the other hand have increased their average rent at a slower pace by 11.8% year over year.