Austin is projected to grow in 2016 at another 5% average annual rate, as it has since 1990. Austin is growing at such a fast rate that we’re having trouble keeping up. What does that mean for the homebuyer or even the seller? Well, it means both good and challenging things. I’ve had clients ask the following questions; let’s see if my answers can help you understand what’s to come:
Why don’t we have more homes to choose from?
New housing is doing much better, and over 18,00 new single family residents are expected to be built. However, when we have about 60,000 people moving here annually (that’s a lot of people, people!), those who want to purchase a home will most likely either have to wait, or pay a high price to do so.
But isn’t the economy about to go bad because of the oil and gas crisis?
Not really. If the growth trends continue, the current oil-and-gas conditions shouldn't do too much to hurt Austin’s economy. “Today's economic drivers are population growth, technology and enterprise, education and health and the festival economy led by South By Southwest (SXSW), the Austin City Limits Music Festival, Fun Fun Fun Fest and the Formula 1 U.S. Grand Prix at the Circuit of The Americas race track. Collectively, those special events have contributed about $1.4 billion to the economy in the past two years.” 1
What about the high unemployment rate?
Last year over 36,000 jobs were created in Austin, mostly in the professional and business services. This next year is expected to do the same. Austin’s 3.8% growth makes it the third best performing among the 50 largest metro areas. 2 With Austin as one of America’s “Most Future Ready Cities” 3, I expect this trend to continue.
What about our awful traffic?
Believe it or not, we actually have shorter commute times than other cities our size. While we definitely have room for improvement, at least in comparison we’re right there with the other larger cities.
With about half of all renters paying a third of their income in rent, doesn’t it just make sense to buy a home in Austin? You build equity, you have security, freedom, and a fantastic financial investment!
1 - http://www.bizjournals.com/austin/blog/real-estate/2015
2 - https://www.austinchamber.com/site-selection/business-climate/the-economy/ei-archive/2016_01_26.php
3 - http://www.futurereadyeconomies.dell.com/ranking-americas-most-future-ready-cities/