One of the most active housing markets in the whole of Texas and the US is Austin. This is relatively due to the presence of big tech companies, a thriving economy, a lot of job opportunities, and a population surge in the last decade.
Just like it affected other sectors, the COVID-19 pandemic affected housing in Austin. Some studies stated that Austin is no longer ranked as the number one hottest housing market in the US at the end of 2021. This, however, doesn’t mean there are no opportunities for housing investors.
The pandemic has created more opportunities for investors with long-term goals in Austin. The truth is that Austin’s housing market is still one of the best in growth and stability in the whole country. Keep reading for more information about the Austin market in 2022 and the projection for the future.
The current state of the housing market in Austin Texas
In the last two years, due to the COVID 19 pandemic, the housing market in Austin, Texas has witnessed a lot of changes. For instance, local housing rates are expensive but there is a gain in the prices at the end of last year. The latest trend has also transited to the nearby counties in Austin. Below are some of the housing markets in nearby counties in Austin in 2022.
This is one of the closest counties to Austin, Texas. Its proximity to the city has made the county one of the greatest benefits of the housing market in Austin. Caldwell County is located between San Antonio and Austin. In the last 12 months, Caldwell has witnessed a 22% increase in home prices. One of the significance this has on the duration that homes stay on the market. In recent times, rarely do homes in Caldwell County last more than 12 days in the market.
Hays County, located at the Southern tip of Austin has been benefiting from its proximity to the capital. The latest increase in prices of homes in Hays could also be attributed to Tesla’s announcement of a new factory in the county. In the last 12 months, the prices of homes in the county have gone up by about 30%. Not only that but there is also an increase in the duration that homes use on the market before a buyer comes for them. The figure stands at 43% in the last 12 months.
Williamson County is situated on the northern border of Austin and has a great influence on the housing market. In the last 12 months, prices of homes in Williamson have increased by 33%. The county also witnessed a decrease in the number of days that homes last on the market. The duration has been reduced to an average of 35 days. This represents a decrease of 16% from that of the previous year.
Bastrop is another county that is not only benefiting from its proximity to Austin, it is also benefiting from its proximity to Tesla’s new factory. This has placed the county as one of the favorite destinations for migrants. This one in the housing market implies that there is an increase in the prices of homes and a decrease in the duration it takes to get a buyer for a home. In the last twelve months, the county has witnessed a surge in the prices of homes which stand at an average of 35% and a drop in the market days to 33%.
The Future of housing in Austin, Texas
It might be too early to start discussing the future of the housing market in Austin, especially after the aftermath of the COVID-19 pandemic. Nevertheless, below are some of the likely things that could happen in the foreseeable future to the housing market in Austin.
Houses will be expensive
After the COVID-19, Austin is witnessing a steady increase in the price of housing. This could be connected to reducing interest rates which brought about more savings, competition, and less inventory. The implication of this is that the increase in housing prices is not expected to stop anytime soon. Moreover, the opening of a new Tesla factory will make more people buy homes.
Investing in rental properties will be a wise decision
For the foreseeable future, investment in rental properties is a good strategy to make more profit. From some studies, Austin is ranked as one of the cities where residents prefer to rent homes than own. This is based on different measures such as changes in price, cost of living, and many more. By 2021, the rent of properties has gone up by about 22%. With the surge in the value of homes, rents are not expected to come down anytime soon in Austin.
Reasons why you should consider the Austin housing market a good place to invest
In the last decade, there has been a swell in the population of Austin. The implication of this is that there will be strong demand for housing. This led to some studies naming the city as the hottest housing market in the entire country. With a prediction that there will be more people in Austin in the coming decade. Here are some of the reasons why you should consider investing in housing in Austin.
More people are willing to move to Austin
Austin has a reputation for legendary music, which has attracted many people to the city. Though the pandemic has caused a setback in some of the music festivals and conferences in Austin, they are expected to bounce back soon.
Also, Austin is still regarded as one of the best places you can visit or live. Other attractions to the city are the booming economy of the state, the presence of a major university, being a state capital, big tech companies, and others. Since more people will be coming to Austin, there will always be a demand for housing.
The value will keep increasing
The presence of big tech companies and the recent announcement of Tesla to establish a factory means that Austin is still one of the favorite destinations of people relocating. This implies an increase in the demand for houses and a relatively short supply.
Between 2021 till date, the value of an average home in Austin has increased by an unbelievable figure of 40%. Moreover, the Austin Board of Realtors reported a decrease in the average days a house spends on the market. No wonder the housing market in Austin is tagged as being extraordinarily hot.
The market for long-term investment.
More business investment in Austin will bring in more people every year. If you are targeting building long-term investment, then you should consider homes in Austin. The fact is that the housing market is expanding in Austin.
The North and the Southwest of Austin have houses that are still relatively cheaper now and they look more attractive. Investment in housing in these areas could bring a significant return in the years ahead.
Reasons why people migrate to Austin
Did you know the reason why the housing market in Austin is tagged as a hot market? People are moving into the city in their numbers and this has influenced the price of houses. Why does this make Austin special and a favorite destination? Here is a list of some of the reasons.
Google, Oracle, Amazon, Tesla, and other big companies have offices and factories in Austin, Texas. This in turn has provided employment opportunities for a lot of residents. The opportunities keep growing every year as more companies are constructing factories in the city. This is the reason why Austin is ranked as one of the best job markets in the whole of the United States after the pandemic. Moreover, the state also does not have a personal income tax.
Cost of living
Many studies suggested that the cost of living in Austin is relatively affordable when you compare it with other states. Though the cost of housing and transportation is relatively high, the cost of healthcare, groceries and other utilities is still a good bargain in Austin.
Different ranges of lifestyle
Any city in the US attracts certain types of migrants but Austin is appealing to everybody willing to move there. Job opportunities, varieties of nightlife options, and outdoor experiences are attracting a lot of people. For instance, residents of Florida move to Austin due to the comparative lack of natural disasters. Tech migrants also see Austin as a good destination due to the presence of big tech companies.
In Austin, you find different types of amenities and recreational opportunities for outdoor enthusiasts. Moreover, the South by Southwest is a popular music festival that has attracted a lot of artists to Austin.
Housing in Austin is in high demand due to the thriving economy and the big companies. The demand for housing is not expected to reduce anytime soon. If you are thinking about investing, housing in Austin is the next big cake.