Introduction:
Why are investors still interested in the Austin real estate market? Because Austin is a mini-Los Angeles. Find out more here!
Why are investors still interested in the Austin real estate market?
Austin, the nation’s second-fastest expanding metropolis, is an ideal location for private real estate investment. Austin’s status as a thriving college town, the Texas state capitol, the Live Music Capital of the World, and the host of South by Southwest are obvious reasons (SXSW). However, a few unique quirks make the Austin real estate market even more appealing.
To begin with, Austin has an unusually high average of 300 sunny days per year. It is also famous for its unofficial motto, “Keep Austin Weird,” which was coined in 2000 and was so successful for economic development that Portland adopted it in 2003. Austin is also home to many internationally recognized festivals like the Austin City Limits Music Festival and the Formula One Grand Prix, which add to making Austin an interesting place to live. Austin’s abundance of green space makes it popular for biking, swimming, and other recreational activities.
In 2017 and 2018, Austin topped U.S. News & World Report’s list of the greatest places to live. According to the magazine, roughly 50 people migrate there every day. According to the most recent U.S. Census Bureau data, the city ranks second in growth from 2010 to 2015. As a result, Austin investment properties are primed for rapid growth.
Education and technology benefit the Austin real estate market.
The highly ranked University of Texas is Austin’s major influencer and a huge advantage to the city’s investment property. U.S. News and World
Report ranks UT-Austin as a global institution on par with the Universities of Wisconsin, St. Louis, and North Carolina. Thanks to the university, Austin is one of the nation’s fastest-growing cities for young adults.
Austin’s prominence in tech research has also been a big growth driver and a tech employment hotspot. Austin’s major sectors include semiconductors, space technology, and life sciences, and the city attracts companies like Apple, Dell, IBM, and Samsung that hire college graduates. Metro Austin is one of the top places in the U.S. for STEM employment, which are careers that involve knowledge of science, technology, engineering, or math. According to the U.S. Bureau of Labor Statistics, there are 13,680 application software developer jobs in Austin alone.
Job Creation Accelerates Austin’s Real Estate Market is Expanding
Austin has the second-highest job growth rate in the country, at 3.7 percent for the 12 months ending in February 2018. Facebook, Google, Indeed, and Expedia all inked big Austin real estate leases last year. Oracle’s new corporate campus southeast of downtown Austin exemplifies what makes Austin real estate so lively. The tech company’s property overlooks a lake flowing through the city’s heart. Also, the lake was once known as Town Lake but is now known as Lady Bird Lake. Oracle is relocating 3,000 employees to the picturesque location, with another development phase projected to add 2,000 more.
Austin’s downtown skyline is littered with cranes and building dust due to rapid expansion on both fronts – jobs and people. There are numerous prospects for real estate investment in new development and well-located value-add projects in Austin. In total, approximately 20 high-rises are transforming the city’s skyline, including The Independent, the city’s tallest high-rise, and a game-changer in terms of size and architectural significance.
Austin’s workforce drives suburban-style growth.
While downtown Austin is expanding, it is also growing more expensive. Thus people are moving to Austin’s outskirts. Seeing this trend, many development and redevelopment projects are taking place. This area is already strong due to its proximity to Interstate 35 and Texas Highway 71, but corporate real estate investment will accelerate its expansion.
Domain, a bustling corporate, retail, and residential center in Austin’s north end, is another hotspot. Austin’s second downtown has been dubbed. It was built in the midst of nowhere when it was first constructed. And now there’s Facebook and Amazon, as well as new office and multifamily real estate, as well as fantastic restaurants and high-end shops.
Because of this trend, the Austin real estate market will resemble a mini-Los Angeles, with high-density yet compact hubs sprouting everywhere. And Austin investment properties at these nodes will outperform those not next to these suburban-style urban developments or do not have convenient access to transportation.
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Come join us! Email me at mark@dolphinpi.us to find out more about our next real estate investment.