Austin's apartment market is booming

AUSTIN (KXAN) - The hip 78704 ZIP code is in high demand.

" We have SoCo, Sofo, South First, you have Sola, South Lamar;  these are really unique entertainment districts and shopping and food. This is kind of where everybody wants to live," said City Wide Realty agent Scott Stevens.

That demand is sending many people looking for the perfect place to call home, which is keeping apartment locator Scott Stevens on the phone and on the streets. He starts his day by calling apartment complexes throughout the 04 ZIP code looking for the one-bedroom deal of the day. He said one-bedrooms are quickly becoming scarce.

"It's like finding a diamond when we find a one-bedroom apartment in this area," said Stevens.

As he hangs up the phone with a leasing agent at GreyStar South Congress apartment complex, he learned a one-bedroom, 674-square foot unit is renting for $1,000 a month; quite a change from last year.

"A 500-square foot apartment last year at this time, $599 a month. Now minimum on a good day, $645, $655 a month," said Stevens.

According to Austin Investor Interests , apartment occupancy in Austin jumped from 91 percent last year to 94 percent this year. Rent is up too -- on average about $17 a month for a one-bedroom.

Chris Case was one of the many in the market for a one-bedroom. He hit the pavement Wednesday with Scott Stevens. Case did not have high hopes about finding anything Wednesday.

"I honestly was just going to see if there was anything available," said Case. "Actually finding a place was kind of wishful thinking."

Stevens and Case visited the Bainbridge Villas in South Austin. Luckily, they found a one-bedroom available in September. The complex hasn't had a one-bedroom vacancy in four months.

"People aren't moving out because they found that once they got in, they got in at a good price, and the apartment community this year has done a really good job of retaining their residents as well too," said Scott Stevens.

As its gets closer to the start of school, the hunt to find the perfect place to call home will only get more intense.