A city on the move: Austin real estate market forecast 2022
It’s no secret that Austin is one of the most popular places to be right now. Not only is snow a rarity, but you have access to world-class amenities and restaurants. If you can’t find what you want in Austin, you can definitely find it in nearby Houston or Dallas.
If you’re thinking of investing in Austin real estate, you probably have a few questions about the current state of the market there. If you want to make a sound investment, then you need to be informed about all of the factors impacting the market. Thankfully, we’ve compiled this Austin real estate market forecast 2022 guide to help you out.
Read on for tons of great information that’ll help guide your Austin real estate investment decisions.
Factors Driving the Austin Real Estate Market Trends
There’s a lot going on in Austin that’s impacting the housing market. If you truly want to understand why the market is why it is, then you need to understand the underlying factors. The two biggest factors coming into play are the tremendous growth in population in Austin as well as the accompanying growth in jobs.
COVID-19 didn’t slow down Austin’s population growth. Between July 2020 and July 2021, the population of Austin grew by nearly 55,000 people. This makes Austin one of the country’s fastest-growing metro areas, coming in behind Dallas-Fort Worth and Houston.
Where are people coming from, though?
By and large, people moving to Austin are coming from other parts of the Lone Star State. Apart from Texas, the two biggest states contributing to Austin’s population growth are California and New York. Both of these states have significantly higher costs of living than Texas, likely a factor in their decision to move down south.
Along with the massive spike in population, Austin also has one of the healthiest job markets in the country. You might be surprised to learn that Austin has more jobs today than it did pre-pandemic. Thanks to this fact, it’s currently coming in at the second-strongest job market in America.
Austin’s job growth is due in large part to the expansion of major tech companies to Austin. Companies like Tesla, Facebook, and Apple, among many, many others have established offices in the area. As a result, Austin is quickly becoming known as the Silicon Valley of the South.
Average Home Values
One of the biggest reasons why people started moving out of major cities like Los Angeles and New York was the lower cost of living found in Texas. Since the population shift has been happening for a while now, the cost of housing in Austin has risen pretty significantly.
This is thanks in large part to people from high cost of living cities selling their homes and sinking the profits into new homes in Austin to avoid capital gains tax. Currently, the median sales price for homes in Austin is around $475,000. Not as high as coastal cities, but expensive for Texas.
It’s also important to note that if you find a home you like, you need to move fast. Most homes are on the market for about three weeks, and bidding wars are pretty common.
Just like any major city, Austin has different neighborhoods that have their own average home values. Tarrytown is the most expensive neighborhood by far, with home listings averaging $2 million. It’s situated just west of downtown, and it is home to several historic homes.
If you’re looking for more affordable homes, then you’re going to need to look in neighborhoods like West University, where homes are listed for around $320,000. If you don’t mind living further away from the action, the Manor neighborhood in far east Austin offers homes in the $200k-$300k range.
The Rental Market
In housing markets as hot as Austin’s, there’s also a healthy rental market. If you’re thinking about investing in Austin real estate, then taking advantage of the rental market is a great way to do that.
The median rent for a three-bedroom home is around $2,300, and renters make up about 60 percent of the homes in Austin. This, coupled with the rents continually going up year after year, investing in rental property in Austin is a powerful way to enhance your investment portfolio.
Areas of Growth
It’s no secret that the demand for housing in Austin far outpaces the available inventory, but that doesn’t mean that growth isn’t happening. Investment firms like Ballardbuilt.com are helping create new residential construction in Austin and the surrounding areas.
Wondering about some of the biggest hot spots for new construction? Most of the growth is happening outside of the city center. Nearby cities like Leander and Georgetown are teeming with new construction, and they’re only a short drive to the city.
Looking for affordable new construction? Check out Manor and Jarrell. If you want something more upscale, definitely explore your options in Dripping Springs.
Overall Quality of Life
Austin is an incredible place to call home. The 2021-2022 US News and World Report ranked Austin 5th in the country. This is because of Austin’s healthy job market, incredible school system, and awesome weather. On top of all that, Austin is a destination city for musicians and is home to tons of great restaurants.
If you’re concerned about your health, it’s home to two highly-ranked hospitals: Ascension Seton Medical Center and St. David’s. There are also lots of recreation opportunities in the form of walking trails and parks.
Loved this Austin Real Estate Market Forecast 2022?
There’s a lot going on in Austin real estate world. Thankfully, by reading this Austin real estate market forecast 2022, you’re honing your knowledge and enabling yourself to make informed decisions about your Austin investments. Whether you choose to invest in your own home or rental properties, you can’t go wrong in Austin’s dynamic and growing market!
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