Why Invest in Real Estate in Austin?
As the fourth largest city in Texas and 11th largest city in the nation, Austin has catapulted itself into one of the fastest growing and most desirable places to live in the country. From “best city to live in” to “best city to start a business in,” Austin routinely finds itself ranked amongst the top 10 cities in the country across a range of categories, and things don’t appear to be slowing down anytime soon.
Along with one of the largest public universities in the country, Austin has recently become a thriving place for young professionals thanks to the influx of close to 4,000 technology companies—including Facebook, Apple, Google, and Dell—across the Austin area. In fact, a net 110 people currently move to Austin every day. With its diverse economy and young age demographic, Austin has experienced an explosion of great new restaurants, bars, and breweries all over town. And with the annual South by Southwest festival, Austin City Limits Music Festival, and identity as the “Live Music Capital of the World,” Austin is more than just a great place to live, it’s a cultural destination.
At Domain Realty, we routinely meet and work with individuals and families who have recently moved to the area from within the state and around the country. So whether you’re looking for a home of your own or want to purchase a rental property and try your hand at being a landlord, we are dedicated to working round the clock to find you the perfect place. Our agents at Domain Realty call Austin home, and we couldn’t be more excited to help you one day call it home as well.
But if you’re still not convinced that Austin is the city for you, let’s look at a few reasons why you should pack up and make that move and finally call get that coveted identifier, “Austinite.”
Why You Should Purchase Now
When Austin cracked the top 10 on PwC US and the Urban Land Institute’s Emerging Trends in Real Estate report of hottest real estate markets five years ago, experts thought it was a fluke. They aren’t thinking that anymore. In 2016, Austin was No. 2 on the list, and in 2017 it took the top spot, making one thing clear, the secret is out!
“Austin’s rise to the top of the list signals the durability of the city’s long-term appeal to investors,” says Mitch Roschelle, PWC partner and real estate research leader. “Austin, along with many of this year’s top 10 cities, boasts attractive, niche neighborhoods and a vibrant, diverse economy.”
For potential investors this means one thing; the time to act is now. Austin experienced a 7.3 percent rise in home prices compared to the rest of the country over the last year. And while projections for the first half of 2018 may not set new records, the research team at Zillow predicts home prices will still rise 3 percent in the first half of 2018.
And while that growth closely mirrors the nation as a whole, there are a few factors specific to the Austin market that could persuade potential investors from buying sooner rather than later.
One of those is inventory. Reports from June 2017 said Austin currently has a 2.3-month supply of homes—compared to a 5.2 month supply five years ago. This below average supply homes compounded with the above-average rate of sales creates a squeeze on the number of homes available for purchase. That’s why you need an experienced and professional real estate team to help you find a house and close the deal quickly.
But fear not. The recent Emerging Trends in Real Estate report did say that “the housing market, both multifamily and single-family, appears to be making adjustments to match supply with the requirements and locations desired by the changing population base.”
Additionally, experts predict Austin home prices could continue to rise through 2018 and into the future. This continual appreciation in home value across the Austin area means buying a home will continue to be a sound investment for years and decades to come.
Up and Coming Neighborhoods
As much as we would like, finding and affording a home in Hyde Park, Tarrytown or Clarksville is near impossible. But that doesn’t mean there aren’t some up-and-coming, off-the-beaten-path neighborhoods to invest in now. You just have to know where to look.
Allandale/Crestview/Wooten – Just north of Hyde Park and Rosedale, these neighborhoods make up the 78757 zip code and offer much more affordable and larger homes than the surrounding areas while still offering proximity to hip restaurants, bars, and public transportation. (Avg. price $350,000 to $450,000)
The Domain – North of Allandale and Crestview, The Domain area, is exploding thanks to the influx of shopping, restaurants, bars, and nightlife in the Rock Rose area. With access to Whole Foods, Topgolf, and some technology companies, it’s a great place to buy single-family homes at an affordable price. (Avg. price $300,000 to $350,000)
Westgate/South Manchaca – South of Highway 290 and east of Mopac, this area is close to the coveted 78704 zip code without the high prices. This area gets you home with bigger lots that are close to downtown, close to parks and other outdoor activities, and close to great restaurants. (Avg. price $350,000)
Windsor Park – If you’ve been in Austin the past couple years you’ve heard of Windsor Park/Mueller. Once the sight of Austin’s airport, it’s now a sprawling community with a new HEB grocery store, new restaurants, and a beautiful park. And while the homes are older, buyers get style and affordability. (Avg. price $350,000 to $400,000)
Whether you’re a first time home buyer or real estate veteran, purchasing a home in a new area can be a daunting and even confusing experience. Our team of experienced and professional realtors is passionate about finding our clients the perfect place to call home. At Domain Realty, we are experts in the Austin market and are here for all of your needs. Call us at (512) 872-4211 and speak with an agent today.