Texas has some of the fastest growing cities in terms of job growth and employment growth. The big four: Austin, Dallas, Houston, and San Antonio, consistently place on top cities lists, including this list by demographer Joel Kotkin. So, what Texas zip codes are commanding the highest rents per square foot? Well, let's take a look.
Top 10 Texas Zip Codes for $/SF Rents
10) Austin, TX 78751 - This is the Hyde Park area in Austin, which is just north of the University of Texas campus. This zip code boasts a median $/sf rental rate of $1.77, but YoY rent growth declined heavily by 12.53%.
9) Dallas, TX 75204 - This zip code is mainly comprised of the eastern portion of the Uptown neighborhood. This area boasts median $/sf rents of $1.78, and experienced healthy YoY rent growth of 3.11%.
8) Forth Worth, TX 76107 - This is Fort Worth's cultural arts district. The area is seeing median $/sf rents of $1.81, and has seen a massive YoY rent growth of 17.44% which is the largest rate of rental growth in Texas.
7) Dallas, TX 75201 - This zip code encompasses the eastern half of downtown Dallas and the western portions of Uptown. Median $/SF rents in this zip code are $1.82/sf, and the area has seen rents rise by 1.90% YoY.
6) Austin, TX 78705 - This zip code is slightly north of downtown Austin and includes the University of Texas and the "West Campus" neighborhood. This area has median $/sf rents of $1.87, but has dipped slightly by 2.07% YoY.
5) Houston, TX 77027 - This is Houston's Galleria area. This zip code has a median rental rate of $1.88/sf, but rents have declined by 12.01% YoY.
4) Austin, TX 78704 - This is South Austin. With rapidly developing corridors along South Congress St, South 1st St, and South Lamar, this area has seen a ton of new product over the years. Median $/SF rents are $1.92/SF, but YoY rents have declined by 3.02%.
3) Austin, TX 78703 - This is the Tarrytown/Clarksville area just to the west of downtown Austin. Although the rents here are high, with median $/sf rents of $2.11/sf, this area has seen rents fall recently, and YoY rents declined by 6.13%.
2) Houston, TX 77002 - Although Houston's economy has suffered recently due to declining oil prices (it will rise again), Houston's downtown zip code commands the second highest rental rates in Texas. The zip code boasts a median rental rate of $2.22/sf. Not only are the rents in this zip code high, but new luxury product has contributed to a whopping 12.62% YoY increase in rental rates.
1) Austin, TX 78701 - This is downtown Austin. YoY rent growth was a measly 1.35%, but the area's median rental rate of $2.59/sf tops our list. This area's rents are so high that the area has experienced a small window for condominium developments, such as The Independent, which is projected to be the tallest residential tower West of the Mississippi.
The above zip codes may not be too surprising. Austin, TX boasts five zip codes on the list. Austin, TX has been coined the The City of Eternal Boom by Texas Monthly Magazine. This metro area is not only experiencing a ton of growth, but is also naturally constrained by its many hills, rivers, and creeks.
Source: zillow.com median $/sf rents for 5+ unit multifamily (does not include all zipcodes)
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