Here’s what you need to know about Austin Real Estate today:
Housing Market Trends & Challenges
We moved to Austin for the tech jobs, but finding a home was defeating. We kept getting outbid by people making cash offers sight-unseen.
Source: The Central Texas Real Estate Review
Article Summary: The Central Texas real estate market is currently experiencing an unprecedented surge, driven by a combination of low interest rates, an influx of new residents from out of state, and a steady economic climate. This boom is applicable across residential, commercial, industrial, and land & farm real estate sectors. The residential market is particularly robust, with the median home price in Austin hitting record highs. Developers are also capitalizing on the trend, with numerous new projects in the commercial and industrial sectors underway. The growth is not confined to urban areas, as rural land purchases are also on the rise, signaling a widespread interest in Central Texas real estate. However, this uptick also brings challenges, including affordability issues and a shortage of available properties.
Key Takeaways: For real estate professionals operating in Central Texas, staying informed about these trends can help navigate the current market challenges, deliver value to clients by identifying investment opportunities, and position themselves for success in a highly competitive market.
Locals are being priced out of Texas and Florida. Here’s where they’re looking for affordable homes instead.
Source: Business Insider
Article Summary: Rapid increases in home prices in Texas and Florida are pushing locals to look for more affordable housing options outside of their states. The cost of a home in Texas has risen by 30% since 2019, a trend accelerated by the migration of 884,000 people to Texas between April 2020 and July 2022. This influx has resulted in higher demand and increased home prices, causing locals to explore options in more affordable regions, particularly the Midwest. Floridians also experience similar trends, with searches for properties within Florida down, and searches for properties in North Carolina, Tennessee, Georgia, South Carolina, and Alabama significantly up.
Key Takeaways: This article underlines the shifting dynamics of the real estate market in Texas, a trend that agents and clients should be aware of when making buying or selling decisions. It emphasizes the need for realtors to diversify their market understanding beyond state borders and adjust their strategies to accommodate these new migration patterns.
Austin’s office market is exploding. But no one is moving in.
Source: Central Texas Property Times
Article Summary: Austin’s real estate market is booming, backed by strong demographic growth and an influx of tech companies. The city is experiencing a surge in both residential and commercial property demands, leading to record-high prices and low inventory levels. Meanwhile, the industrial market is benefiting from the e-commerce boom, with several logistic and distribution centers popping up. With more people moving to the countryside, rural and farmland properties are also seeing increased interest.
Key Takeaways: The current market dynamics in Central Texas present opportunities for real estate professionals to capitalize on, whether it’s catering to tech employees relocating to Austin, assisting businesses in securing commercial spaces, or aiding city dwellers in their transition to rural living.
Texas cities contend with office vacancies higher than national rate
Source: Yahoo Finance
Article Summary: The office vacancy rates in major Texas cities – Austin, Dallas, and Houston – are surpassing the national average, as reported by the Wall Street Journal and supported by Moody’s Analytics. This trend is creating a challenging environment for city developers, particularly those who have overbuilt commercial real estate. The issues come even as these cities continue to see substantial population growth, indicating a potential shift towards remote working or alternate commercial space solutions. Despite these struggles, opportunities may arise for those with innovative solutions to fill these vacant office spaces.
Key Takeaways: This trend of increasing office vacancies offers a unique opportunity for real estate professionals in Austin to pivot their strategies, exploring non-traditional commercial space solutions or even converting spaces for residential use. They can leverage this information to provide valuable insights to their clients and make smart, forward-thinking investment decisions.
Home value and housing market trends in Texas
Source: The Eagle
Article Summary: This article provides up-to-date housing market trends and home value data for Texas, with a focus on the potential direction of home sales. It offers valuable insights with the help of comprehensive charts and graphs, updated weekly, making it a go-to resource for realtors and buyers to understand the market dynamics and hotspots for property investment.
Key Takeaways: Understanding the prevailing trends in the Texas housing market enables real estate professionals to make informed decisions, provide strategic advice to their clients, and identify potential investment opportunities for growth and development in their career.
Austin has over 120K apartments in pipeline
Source: The Real Deal
Article Summary: Austin ranks eighth nationally for multifamily units under construction, with over 120,000 units in the development pipeline. Despite an influx of new residents and modest stabilization of soaring rents, developers face high vacancy rates, with nearly 20,000 more units delivered than leased in September. Experts predict construction activity could decrease by 2025 or 2026, impacting future rent growth viability. With approximately 36,000 vacant multifamily units in the Austin metropolitan area, a rebound in demand is uncertain and dependent on various economic factors.
Key Takeaways: This wave of vacant multifamily units presents both a challenge and opportunity for real estate professionals. They must stay informed about the market dynamics, adapt their strategies to manage high vacancy rates, and potentially leverage the situation to negotiate more favorable terms for their clients.
Demolition Pending for Downtown Austin Hotel Planned at Fifth and Trinity
Source: Austin Towers
Article Summary: The city has approved the demolition of old buildings on East Fifth and Trinity Streets in downtown Austin. This paves the way for a new hospitality project by White Lodging, which plans to construct a part of Marriott’s Autograph Collection, a group of “”upper-upscale to luxury”” hotels. Despite concerns over the hotel only rising 13 floors, which some see as a missed opportunity considering the location, the project is moving forward. The demolition and construction of the new hotel will contribute to the changing face of downtown Austin’s real estate landscape.
Key Takeaways: Real estate professionals can use this information to prepare clients for the changing landscape of downtown Austin, potential disruptions during construction, and new opportunities the luxury hotel may bring in terms of tourism and commerce.
Real Estate Transactions & Investments
CIM Group Acquires 390-Unit Apartment Community in Northwest Austin
Source: REBusinessOnline
Article Summary: The CIM Group, based in Los Angeles, has purchased a 390-unit apartment community known as Onyx183 in northwest Austin’s Parmer Corridor, in partnership with an undisclosed entity. The property was built in 1995 on over 21 acres of land and has undergone recent renovations. It features a range of amenities including two pools, outdoor dining areas, a fitness center, and a resident clubhouse. The details of the seller and the sale price were not disclosed.
Key Takeaway: This acquisition highlights the active residential real estate market in Austin, offering professionals insights about potential investment opportunities and the ongoing demand for renovated, amenity-rich properties in the area.
2 Dallas Properties Up For Grabs After Austin Housing Developer Goes Under
Source: Bisnow Dallas-Ft. Worth
Article Summary: StoryBuilt, an Austin-based housing developer, is undergoing a $2B receivership sale that includes two Dallas properties among 28 projects across Austin, Dallas, Denver, and Seattle. The first Dallas property is a 12-acre site in Downtown Dallas planned for a mixed-use development named Jolene, featuring 800 housing units and retail space. The other property in Lake Highlands is a homebuilding site named Goose. Facing financial difficulties, StoryBuilt has sought voluntary receivership. A&G Real Estate Partners and Onyx Asset Advisors are in charge of marketing the projects for sale.
Key Takeaway: This article highlights potential investment opportunities for residential real estate professionals in Austin, as the receivership sale of StoryBuilt projects could create openings in the residential market.
SPI Advisory Completes Acquisition of 164-Unit Riverbend Apartment Community Located in The Heart of New Braunfels, Texas
Source: MultifamilyBiz.com
Article Summary: SPI Advisory, along with its partners, has completed the acquisition of Riverbend Apartments, a 164-unit Class A apartment community in New Braunfels, Texas. Located between Austin and San Antonio, the property benefits from a diverse economy, strong area demographics, and direct access to Guadalupe River through a private riverfront park. The previous owners already upgraded about 25% of the units, and SPI plans further renovations over the next two years, including updates of common areas, gym, landscaping, and unit interiors. This acquisition comes one month after SPI’s acquisition of a 244-unit apartment community in South Austin, further expanding their portfolio in Central Texas.
Key Takeaway: The acquisition of Riverbend Apartments by SPI Advisory signals the ongoing attractiveness of Central Texas real estate, with property’s unique location and amenities offering potential for enhancing client portfolios.
Second story that floats? ‘Weird Era’ estate for sale in Texas. Check it out
Source: Miami Herald
Article Summary: A unique home designed by famous architect Arthur Dallas (A.D.) Stenger is on the market in Austin, Texas, listed at $4.5 million. The four-bedroom, four-bathroom estate, situated in the desirable Barton Hills neighborhood, exhibits Stenger’s signature fusion of nature and modernism, with features such as wood, stone, vast windows, and 50’s-style fireplaces. The home’s design prioritizes natural light and ventilation, with standout features like a second story that appears to float above the first, and a glass wall of doors that seamlessly merge indoor and outdoor living.
Key Takeaway: This unique architectural property in one of Austin’s most sought-after neighborhoods offers potential buyers a blend of lush greenery and urban proximity, highlighting the diversity and appeal of Austin’s real estate market. Real estate professionals can use this information to highlight the city’s innovative and sustainable living options to prospective clients.
Real Estate Guides & Information
How to calculate property tax in texas
Source: The Tech Edvocate
Article Summary: This article offers a comprehensive guide on how to calculate property tax in Texas, detailing the process from determining the property’s appraised value to arriving at the final property tax bill. It highlights the various property tax exemptions available to homeowners, the process of calculating taxable value, and the various taxing units involved. The piece ends with a clear example illustrating the calculation of property tax and emphasizes staying informed about changes in tax rates and appraised values.
Key Takeaway: Understanding the nuances of property tax calculations in Texas can empower real estate professionals to offer accurate and valuable advice to their clients, enhancing their service quality and advancing their careers.
Couple may lose home after unpaid work on Austin affordable housing project
Source: rssfeeds.kvue.com
Article Summary: A couple subcontracted for work on the Balcones Terrace project, an affordable housing initiative in Austin, is facing the loss of their home due to unpaid work. The project was fraught with difficulties and didn’t go as planned, and now the Gages are feeling the economic impact.
Key Takeaway: This article underlines the importance of ensuring stable funding and contractual protections in housing projects, highlighting potential pitfalls and consequences for real estate professionals involved in similar ventures.
