Here’s what you need to know about Austin Real Estate today:
Economic Growth and Housing Market Trends
Surprising Central Texas city has more than doubled its rate of big earners
Source: CultureMap Austin
Summary: Central Texas city, Killeen, has experienced a 146.2% growth in high-income households since 2021, making it the city with the fourth-highest growth in this population bracket in the U.S. Additionally, Killeen has been ranked as the city with the best housing market for first-time homebuyers in the country. Meanwhile, the North Austin suburb of Round Rock saw a 51.1% growth in high-income households. In contrast, Austin itself ranked 172nd in the nation, with a growth rate of 19.2%.
Why this matters: The surge in high-income households in Killeen and Round Rock signifies an increased demand for quality residential properties, opening opportunities for residential real estate professionals to cater to this growing market demographic.
Homelessness and Housing Solutions
City of Austin Making Significant Progress in Building Pathways to Exit Homelessness
Source: www.austintexas.gov
Summary: The city of Austin’s Homeless Strategy Office and the Housing Department have reported significant strides in addressing homelessness in the city. Over 3,324 clients used shelter services in the fiscal year 2023, with Austin outperforming all other U.S. cities in successfully transitioning individuals out of shelters. The city expects a growth of 630% in permanent supportive housing units by 2026, with ongoing measures to encourage this growth, including landlord incentives, rental housing development assistance, and new partnerships.
Why this matters: The City’s concrete efforts towards homelessness eradication can be valuable knowledge for our clients, who may be interested in the future growth in permanent supportive housing units, which signals potential investment opportunities and a shift in the local housing market dynamics.
Gen Z Migration and Economic Impacts
Gen Zers are choosing Texas for their new home more than any other state
Source: The Eagle Tribune
Summary: The article highlights that Gen Z, generally referring to those aged 12 to 27, is increasingly choosing Texas as their new home, with the state attracting more young movers than any other. The central attraction is job opportunities, despite the higher housing costs. Texas has seen a significant streak of job growth and is expected to overtake California as the biggest retail market in the country soon. Furthermore, Texas’s cost of living is more affordable than many states, and it particularly excels at talent retention. This Gen Z migration trend has significant implications for the state’s economy, workforce, and real estate markets, especially in its biggest cities, including Austin. The influx of young workers will help drive growth and sustain local economies. However, it also necessitates investment in infrastructure and services to support this growing population.
Why this matters: The increasing influx of Gen Z to Texas, particularly Austin, highlights a promising trend for real estate players – a growing young workforce means potential expansion of both residential and commercial real estate markets, providing realtors with opportunities to cater to this demographic’s unique housing and property needs.
