Austin Real Estate and Community News

Nov. 28, 2021

Austin Greater Area Real Estate Market Overview 11/28/2021

Real Estate Market Overview for Residential Buyers and Investors.

Area Definition

Austin–Round Rock (or Greater Austin) is a five-county (Hays, Travis, Caldwell, Bastrop, Williamson) metropolitan area in the U.S. state of Texas, as defined by the Office of Management and Budget. 

The metropolitan area is situated in Central Texas on the eastern edge of the American Southwest, and borders Greater San Antonio to the south.

Austin–Round Rock is the 29th largest metropolitan area in the United States, with a population of 2,283,371 people as of the official 2020 U.S. census. 

The metropolitan area is centered on the City of Austin—the fourth-largest city in Texas and the 11th-largest city in the United States with a population of 961,855 people. 

Austin's largest suburbs are Round Rock, Cedar Park, Georgetown, San Marcos and Pflugerville.

 

 

Area Demographics

According to the US Census data, Austin Greater Area has been again in 2020 the fastest growing big metropolitan area in the Country.

The Population increased to an estimated 2,295,303 people with a 3% increase from the previous year, confirming that the trend started about 10 years ago is still steady.

The population growth in the Austin Greater Area went from 1,727,514 people in 2010 to 2,295,303 people in 2020.

The most popular demographic studies and economists of the nation, forecast the Population of the Austin Greater Area to grow up to 4,000,000 people by 2040.

The social, technologic and economic evolution of the last decade has made Central Texas and the Austin Greater Area one of the most attractive areas in the Country for big industries and employers and people:

  • Great infrastructures.
  • Very friendly business environment.
  • No income tax.
  • Low cost of living and consequently of settling for big companies with a great number of employees.

If the migration was already strong before the COVID Pandemic and the following events, there is no doubt that all that had significantly boosted the migration phenomenon.

Because of all these conditions, the economic growth pace in the Area is expected to keep being very strong and higher than the average in the Country for a very long time.

 

Resources:

https://www.census.gov/quickfacts/austincitytexas

https://austin.culturemap.com/news/city-life/02-02-21-austin-growth-suburbs-take-off-says-city-agency/

https://www.kvue.com/article/money/economy/boomtown-2040/austin-population-growth-census-data/269-c1e8725e-3489-4445-9bb5-fc340887cc43

https://data.austintexas.gov/stories/s/Imagine-Austin-Population-and-Jobs-Forecast/j5a7-yk8d/

https://www.statesman.com/story/news/2021/06/16/austin-real-estate-growth-development-census-roundup/7525338002/

https://www.kut.org/austin/2019-05-16/people-keep-moving-to-austin-but-where-are-they-coming-from

https://www.greenresidential.com/why-thousands-of-people-are-relocating-to-austin-texas/#:~:text=The%20demand%20for%20housing%20in,gaining%20momentum%20again%20in%202021.&text=First%2C%20Austin%20has%20been%20a,not%20far%20from%20the%20truth.

 

Residential Real Estate Market

It’s important to understand that in an Area growing like this, the housing market has been strongly affected by the demand for housing of people moving from other states and metropolitan areas, where real estate prices were, and still are, way above the Market average of Austin.

Most of the people moving to Austin are selling homes for 700/1,000 $/Sqft or 1/2 Millions, and buying homes that cost 50% less.

The Prices in Austin are rising under the pressure of the demand, not because of speculation, there are no margins for speculation at this time.

Clearly loans interest rates at the historical minimum are making the competition among buyers very tough but Lenders are funding with very strong parameters to ensure balance between equity and debt.

The following charts, created with data from the local MLS, show the Market statistics and trends of the last 10 years in the Austin Greater area for a very specific type of residential property:

Single Homes with: 3-4 Bedrooms,  2-3 Bathrooms, Living area range 1,500-2,200 SqFt, 2 Cars Garage.

This chart shows very clearly that the market has been growing from 2011 to 2020 steady with an 8% yearly average rate. From the beginning of the COVID Pandemic in 2020, the growth rate jumped to a 22%/year.

Both the charts of the Median price and of the Price $/SqFt show very clearly that the market has been growing from 2011 to 2020 steady with an 8% yearly average rate. From the beginning of the COVID Pandemic in 2020, the growth rate jumped to a 22%/year.

 

The above chart shows how the inventory of single homes in the budget range of most of the US families has been critically dropping year by year to the historical minimum of the last 20 months, causing a very unfair disproportion between Buyers and Sellers.

This last chart of the "Days on Market" is the consequence of the critical inventory of houses for sale: in the last 12 months almost every single home with the characteristics of this model got under contract in less than 72 hours with multiple offers up to +20/30% over listing price!

These market conditions are ideal for long term investors and home buyers because it will help a lot increasing their equity significantly in the short and mid term.

With a good Investment model ONE Real Estate was able to help more than 50 buyers and investors to purchase properties at a fair price which appreciated more than 20%/yearly in the last 3 years growing their down payment x2/2.5 times.

 

If you are interested in knowing more about:

  • Buying strategies in a multiple offers situation
  • What are the best residential areas for you in a fast growing and changing area
  • What are the best zip codes for future appreciation
  • What is the best type of property for Investment purposes
  • What is the financial model for investing safely, with low risk and good appreciation

Ask for a personal 30 minutes free conversation with Giuseppe Rizzi at giuseppe@giusepperizzi.com

 

Giuseppe Rizzi

Realtor®, GRI, Global Real Estate Advisor

ONE Real Estate LLC

Brokerage and Property Management

Posted in Market Updates
July 31, 2017

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