Why You Should Invest in Austin Real Estate

Austin is the top city in the country for real estate investment, according to PwC and Urban Land Institute. As the second fastest-growing city in the nation, Austin has one of the most positive real estate market outlook, making it a prime target for property investors.

  • Friday, November 29, 2019

  Texas   

Austin is the top city in the country for real estate investment, according to PwC and Urban Land Institute. As the second fastest-growing city in the nation, Austin has one of the most positive real estate market outlook, making it a prime target for property investors.

Apart from being the capital of Texas and the live music capital of the world, many other elements that are fueling the growth of Austin’s real estate. These factors are keeping the industry alive and guaranteeing a bright future. Below are some reasons why investors should consider targeting the Austin real estate market.

Healthy Economy

A strong economy is a critical factor to consider when looking for a place to invest in real estate. Recent reports indicate the Austin economy is thriving, and it shows no signs of abating. Its Metropolitan economy has recently been ranked among the best in the country. This remarkable performance has led to the opening of numerous businesses and the emergence of enormous opportunities.  

Its healthy and diversified economy has attracted many people seeking employment and encouraged locals to forego seeking greener pastures in other cities. This has been good news for people in the real estate sector since the demand for housing has increased tremendously. If you are want to invest in property in Austin or to buy a home, Spyglass Realty can help you out.

Strong Population Growth

For the eighth consecutive year, Austin has experienced the highest population growth in the country, as noted by the Texas government. While half the rise of the population comes from birth, the remainder is a result of people moving into the area. A significant number is coming from other Texas metros. The key driver of this influx is the search for better employment opportunities.

The population spike is not only being witnessed in Austin’s metropolitan region but also the greater area. People coming to Austin are looking for living space and office space, and this has created high-demand. Real estate investors have eyed this opportunity, and are seeking to tap into it. With a large number of potential tenants arriving each day, the real estate market will continue to grow.

Job Opportunities

The unemployment rate in Austin is lower than the national average. Austin has been creating new jobs at a decent pace, and it shows little sign of letting up. Major companies are moving into Austin, and some of them even have their headquarters there. Austin is solidifying its role as a tech hub, and tech firms operating in the area are among the primary contributors to job growth. 

Notable tech firms with a major presence in Austin include Facebook, SolarWinds, Adobe Inc., AT&T, Dell, Apple, IBM, and Oracle, and Amazon. Google is also preparing to move into the city by 2023. These companies need employees to fill the different positions, and they are attracting talent from all over the country. This accelerated job growth has led to the expansion of the real estate market as companies need office space, and workers need housing.

Education 

Austin not only boasts of diverse options in education, but it’s also one of the best cities for getting a quality education. It’s an intellectual capital that is home to high ranking primary schools, secondary institutions, colleges, and universities. These private and public schools provide the population with the perfect opportunity to get the best education. This has resulted in an educated, knowledgeable, and creative workforce. 

Graduates are also in luck since they can quickly find internships and work since there are many industries actively sourcing candidates. Tech, data management, life sciences, and digital media are some of the industries that are opening doors to graduates. The ample supply of skilled labor and the demand for well-educated workers is good news to the real estate market. The young employees will soon be looking for housing, and the expanding industries will need more commercial space.  

Supply and Demand Imbalance

The population growth in Austin has contributed to a high demand for homes and a shortage of inventory. This imbalance has resulted in the rise of home value and faster house sales as homebuyers compete for a limited number of homes. Compared to other cities, the period it takes to sell a house in Austin has drastically reduced.

Investors are now seizing this opportunity and buying homes in order to resell them. It’s a perfect time to make such a move since there is an appetite for homes, inventory is sparse, and the prices are excellent. Some investors are also developing property in suburban areas since people are now moving away from the city in search for cheaper housing options.

Rising Mortgage Rates

Although mortgage rates have remained low for some time, they are expected to rise. In Austin, the rates are at a three year low. This has encouraged homebuyers to make a purchase. Investors can seize this opportunity and secure property before the mortgage rates start to rise. Down the road, rising mortgage costs may deter homebuyers.

Quality of Life

Austin has topped the chart for the third year in a row when it comes to the best places to live in the country, according to U.S. News & World Report. It has so much to offer, including an outstanding job market, quality healthcare, ample entertainment options, a diverse culture, convenient public transport, and much more. 

 

Austin has topped the chart for the third year in a row when it comes to the best places to live in the country, according to U.S. News & World Report. It has so much to offer, including an outstanding job market, quality healthcare, ample entertainment options, a diverse culture, convenient public transport, and much more. 

Austin tops charts of best places to live (Source: Pixabay

Its prime location at the heart of Texas and its mild climate have also drawn many people to it. Since more people desire to live here, there will be a constant demand for housing. As long as the quality of life is fantastic, investors can confidently develop more property in Austin and expect stable returns. 

Final Thoughts

Venturing into Austin’s real estate market is a lucrative opportunity that can bring you high returns. The economy is booming, the population is expanding, and there is a market for residential and commercial space. Whether you want to target tenants, home buyers, or companies looking for office space, the conditions are right for you to diversify your portfolio.



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