Here’s what you need to know about Austin Real Estate today:
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- Texas tops U-Haul’s mover list third year running – Lone Star shines! ⭐
- Austin’s rent dips, but can it beat the 2024 odds? 💸
- Affordable housing boost: Texas rolls out tax credits. 🏠
- Austin, the STEM overachiever, leads again in job growth. 🚀
Migration and Real Estate Trends in Texas and Florida
U-Haul report: Texas retains title as most popular state to move to for third consecutive year
Source: Click2Houston
Summary: Texas once again tops the U-Haul Growth Index, drawing the highest number of movers using one-way U-Haul equipment in 2023 for the third consecutive year. Austin ranks as the fifth top growth city statewide, contributing significantly to Texas’ leading position. The Lone Star State’s growth trend shows no signs of slowing, with four of its cities among U-Haul’s top 25 growth cities in 2023.
Why this matters: The surging population inflow into Texas, particularly in Austin, signifies a thriving real estate market with a high demand for residential and commercial properties; this information can be used to strategize sales and marketing efforts to optimize growth opportunities.
Austin ranked among top 5 destinations for movers in 2023, per report
Source: Austin CultureMap
Summary: Austin, Texas, has been ranked the fifth most popular destination for movers in 2023, according to U-Haul’s “”Top Growth States Report””. This marks the third year in a row that Texas has been the number one state for newcomers, with major tech companies such as Oracle, Tesla, Google, and Apple drawing employees to the area. Despite a nearly 11% drop in the number of self-moving arrivals, Texas still accounted for over half of U-Haul’s one-way traffic. The lower cost of living and taxes are cited as key factors driving this migration. Austin’s growth was not noted in the 2022 report.
Why this matters: The spike in Austin’s popularity underscores the city’s potential for continued real estate growth, offering real estate professionals valuable insight into potential market trends and opportunities.
Tax credits for affordable housing among slate of 30 new Texas laws
Source: KVUE.com
Summary: House Bill 1058, which offers low-income housing tax credits for certain housing developments, is among the 30 new bills that have recently come into effect in Texas. This legislation seeks to alleviate the severe shortage of affordable housing in the state, as shown by the National Low Income Housing Coalition’s data. In the Austin-Round Rock-Georgetown metro area, there are 83,965 extremely low-income renter households but only 13,601 affordable and available rental homes. Austin is ranked as the third-worst metro area in the country for affordable housing, underscoring the urgent need for such tax credits.
Why this matters: Understanding the details of House Bill 1058 can enable real estate professionals to better navigate the affordable housing sector in Central Texas. This information can be utilized to identify opportunities for low-income housing developments, cater to an underserved market, and ultimately drive their business growth.
Apartment rents have declined in Austin recently, but will the trend continue into 2024?
Source: Austin American-Statesman
Summary: Austin’s rental market has seen a significant decline recently, a trend that is predicted to continue into 2024, according to Realtor.com’s November Rental Report. This decline was one of the sharpest in the US, with Austin’s year-over-year decrease pegged at 5.4%, resulting in a median asking rent of $1,575. The decline is primarily attributed to the construction boom, increasing housing supply, and reducing affordability. Despite this, Austin’s rent is still about 25% higher than it was in 2019. Experts predict continued rental relief in 2023 due to slower job growth, particularly in the tech sector, and an increasing supply of apartments exceeding demand.
Why this matters: Implications of the construction boom and reduced affordability in Austin are increasingly affecting rental trends. Real estate professionals can use this information to advise clients and make informed decisions, adjusting to the forecasted market shifts, particularly in the residential rental space.
Meet the typical mover leaving Florida: Millennials who aren’t married and make $48,000 departing for Georgia and Texas
Source: Business Insider
Summary: Nearly 490,000 Americans, a majority of whom are Millennials earning $48,000 per annum, left Florida for other states including Texas last year, due to factors such as skyrocketing home insurance cost and changing social fabric because of wealthy newcomers. Some of the reasons for migrating include a desire for a quieter life, lower cost of living, and dissatisfaction with Florida’s weather. Texas was a preferred destination, with 41,750 people choosing to move there from Florida. It’s noteworthy that those departing Florida have generally lower incomes and home values, and are less likely to be married, as compared to those moving into Florida.
Why this matters: The migration trend from Florida to Texas can present significant opportunities for real estate professionals in Central Texas to cater to the incoming population, which mostly consists of single, employed millennials looking for more affordable living conditions.
Sun City Texas Real Estate Report Dec 2023 by Rugg Realty
Source: Active Rain
Summary: The Sun City Texas Real Estate Report Dec 2023 by Rugg Realty reveals varying trends in the real estate market of Sun City, Texas. The market experienced a decrease in the lowest sale price and average sale price compared to the previous year. However, the highest sale price and median sale price saw an increase. The volume of units sold also increased. The report also highlights that the number of days properties stay on the market has increased, suggesting a slowing market. The report indicates that while there was a slight decrease in the number of properties sold year-to-date, the number of homes in inventory suggests around three months of inventory, indicating a potentially balanced market.
Why this matters: Understanding the current market trends in Sun City, Texas as outlined in this report can provide residential real estate companies with invaluable insights to guide their strategy, and help clients make informed decisions on buying or selling properties in this area.
Austin mayor talks affordable housing, police, political future in 2024
Source: Central Texas Property Insight
Summary: The real estate market in Central Texas continues to experience significant growth, with both the residential and commercial sectors seeing increased demand and prices. Contributing factors include population growth, affordability compared to coastal cities, and robust job market, particularly in tech and manufacturing sectors. Industrial real estate, spurred by the growth of e-commerce and logistics, is also on the upswing. Land and farm real estate, while slower, are steadily holding their own, with investors keeping a keen eye for potential opportunities in agricultural ventures and rural development.
Why this matters: This article affirms the robustness of Central Texas’ real estate market across various sectors, presenting ample opportunities for real estate professionals to leverage this growth to deliver greater value for their clients and advance their own careers.
Economic and Business Development in Texas
Austin Soars To STEM Supremacy: Texas Capital Tops STEM Index For Fifth Time
Source: Benzinga.com
Summary: Austin, Texas, has topped the RCLCO STEMdex for the fifth time in seven years, an index that predicts the metropolitan statistical areas (MSAs) most likely to witness strong STEM job growth due to demographics, quality of life, and business climate. The analysis indicates Austin’s vibrant STEM sector is a significant economic driver, despite growing office costs and a relatively small airport. The city’s STEM appeal may further increase due to Elon Musk’s reported purchase of 6,000 acres just outside Austin, potentially bringing along a surge of new tech workers. The article also highlights new platforms allowing individuals to invest in commercial real estate with minimal funds.
Why this matters: This report underscores Austin as a thriving STEM hub, which will likely boost both residential and commercial real estate demand in the region, representing a potential opportunity for real estate professionals to tap into this growing market and enhance their services to clients.
Texas economy grows faster than nation for five consecutive quarters
Source: The Center Square
Summary: The Texas economy has been growing at a rate faster than nearly all other U.S. states, consistently surpassing national growth rates for five consecutive quarters as of the third quarter of 2023. The state has seen significant increases in real gross domestic product (GDP), current-dollar GDP, current-dollar personal income, earnings, and property income, leading in nearly all categories. Governor Greg Abbott attributes this growth to Texas’s innovative spirit, strong work ethic, and consistent business investments across various industries. Texas also leads in job growth, with the greatest number of total jobs, Texans working, and the largest labor force in state history.
Why this matters: The robust economic growth and job creation in Texas is driving a strong real estate market in the state. For real estate professionals, this information can be used to underscore the strength of the Texas market to potential investors or for those considering relocation to the area, and to inform strategic planning and investment decisions in both residential and commercial sectors.
Michael Hsu converts 1900s Austin house into luxury office
Source: Dezeen
Summary: Michael Hsu Office of Architecture has transformed a 110-year-old bungalow located in South Congress Avenue, Austin, into a luxury office for technology and biotech investment firm, 8VC. The revamped structure, which was earlier a brothel, is now a 4,845-square foot workspace accommodating multiple functional areas. The office maintains a home-like ambience with a blend of modern and vintage furnishings. The exterior of the building retains its old-world charm and the interior spaces are designed around a central enfilade and twin hearth spaces inspired by the original brick chimneys.
Why this matters: This article showcases a unique approach to commercial real estate in Austin, turning a historic residential property into a modern workspace. It underscores the potential of repurposed properties and offers a fresh perspective to real estate professionals who might be looking for innovative ways to offer value to their clients.
Infrastructure and Energy in Texas
Texas Moves To Link Its Power Grid To Other States After Heavy Property Losses 3 Years Ago
Source: Bisnow Houston
Summary: Texas is making strides toward expanding its largely autonomous power grid, with a $2.6B plan for a transmission line that would connect to the southeastern U.S. The project, known as Southern Spirit Transmission, comes in response to the devastating Winter Storm Uri that led to grid failure and significant property damage three years ago. Despite the project’s capacity not being enough to sustain the grid in another similar disaster, it represents the largest connection Texas has had with Mexico and the western and eastern U.S. grids. The project, which is yet to commence construction until 2026, awaits approval in Louisiana and Mississippi.
Why this matters: This article is relevant to our readers as it underlines the importance of infrastructure planning and its direct impact on property value and insurance costs, especially in the wake of increasing extreme weather events. Being aware of such initiatives can help real estate professionals strategize their investments, protect their properties, and advise their clients accordingly.
