Austin, Texas Housing Market Overview

Austin, Texas is seen by many as one of the fastest growing housing markets in the United States. With companies such as Tesla and Apple opening regional and corporate offices, hundreds of new residents are moving to Austin every day. This migration, coupled with a world famous live music scene, great food and great schools, has opened the doors for real estate investors to take advantage of the tremendous growth that the Austin real estate market is currently experiencing and cash-in on smart real estate investments.

To get a better understanding of the Austin real estate market, we’ll explore some of the key trends, stats and outlooks for the Austin real estate investment market and how real estate investors can look to capitalize on these opportunities to purchase or refinance an Austin real estate investment property.

Austin Real Estate Market

As we mentioned at the beginning of the article, the Austin real estate market is thriving. After being ranked as the number #1 market in the U.S. in 2021 by Zillow, 2022 looks to be more of the same with no signs of slowing down. New residents are coming from all over the United States to take advantage of allthat the city of Austin has to offer. The population growth has been a staggering 34% since 2010 and Austin is currently averaging 184 new residents every day. With this growth and demand for homes in Austin, listed houses are typically on the market for an average of 48 days according to Realtor.com.

Austin Neighborhoods

Austin is home to 83 neighborhoods with Tarrytown listed as the most expensive neighborhood with an average listing price of $1.8M. The least expensive neighborhood is Franklin Park, with an average listing price of $399K.

The average listing price in Downtown Austin sits at $832K with over 150 properties currently listed for rent and 44 homes listed for sale.

The Austin Board of Realtors lists that the average sales price of a home in the Austin-Round Rock MSA was $476,700 in December of 2021. The Austin Board of Realtors also released that the total sales volume in December 2021 was $2.12 billion.

For investors looking for their next investment properties, having a good understanding of these neighborhoods and the overall volume of home sold will be key in deciding where to invest next.

Austin Schools

Located in Travis County, Austin is home to several highly rated public schools, including six elementary schools given a perfect 10/10 score from GreatSchools. There are also 81 private and charter schools located in Austin. With the influx of families from all around the country moving to Austin, the quality of the K-12 education has been seen as a major factor in cities rapid growth.

Austin is also home to several major colleges and universities such as:

1. University of Texas at Austin

2. Austin Community College

3. Concordia University

The quality of schools are major factors for investors when looking to make their next real estate investment purchase. Finding the most attractive areas, ensures a strong return on investment.

Austin Job Market

The Austin job market has rebounded nicely from the COVID-19 pandemic. In November of 2021 alone, Austin added 11,800 jobs following up the 21,000 jobs created in October. The Federal Reserve Bank of St. Louis lists the Austin-Round Rock MSA GDP at $169 billion.

A few of the most recognizable companies in the world helped to contribute to the amazing growth that the Austin job market saw at the end of 2021.

1. Amazon

2. Dell

3. H-E-B

4. Tesla

The influx of tech companies to the area has given Austin the nickname, Sillicon Hills.

Comparing the number of jobs pre-COVID, Austin currently has more jobs, 1,189,400 than in February 2020, 1,142,400, just before the pandemic started.

Is Austin a Good Place for Real Estate Investing?

Austin real estate has remained a hot market even though the COVID-19 pandemic and the uncertainty various markets have faced. The Austin real estate market continues to see strong growth in median listing prices, growing 23.2% year-over-year according to Realtor.com.

Any real estate investor will find Austin to be a great real estate investingopportunity. The rental property market has huge potential as does the new construction market with the currently rising home prices. Austin investment properties

For investors looking for their next Austin investment property, they should follow the trends and take note of where the most value can be found. As we mentioned earlier, there are over 80 neighborhoods in Austin and they all present different opportunities for investors. It’s important for any new investors to understand this rapidly growing market and do their homework to find the right property.

Is Austin a Good Rental Market?

Austin, Texas is one of the top rental property markets in the country. According to WalletHub, Austin ranks in the top 30 of best cities for renters. Roofstock estimates that rents in Austin have increased by 18% year-over-year. Additionally in the past three years, rents in a 3-bedroom property have increased by a large margin of 27%. Renter-occupied households account for 61% of the total occupied housing units in the Austin metropolitan area.

The Wrap Up

Austin is great city with tons of culture and the opportunity to continue its rapid growth for many years to come. The influx of tech companies moving to Austin in the wake of the COVID-19 pandemic should only see that growth increase and keep Austin as one of the top places to live in the entire United States.

Real estate investors in the Austin area should do their research and look to take advantage of the opportunity that the investment real estate Austin has to provide.

About Easy Street Capital

Easy Street Capital is a relationship-based investment real estate lender with loan programs for every borrower. Regardless of experience or credit we are able to finance your next investment property. Whether you are buying a property to fix up, building new construction, or generating cash flow from rental units, Easy Street Capital has the solution.

As a fully discretionary lender we have the ability to customize a loan specifically to meet your individual needs. We look forward to assisting you with your next project.

Contact us today to get started on your next real estate project!

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