Six Reasons Why Everyone Is Moving to Austin, Texas

My son Michael ran across this on-line article and passed it to me. I have summarized the content of the piece and found no surprises, only a confirmation of what has happened and what is happening. Hope y’all find it interesting.

1) Austin has a booming economy: 150 people are moving here each day. This in itself creates jobs in the service and retail industries. For the record, Forbes in 2013 named Austin as the #1 city for jobs and in 2014 it named Austin as the #1 city for future job growth (I think we hit that mark!). The 2014 unemployment rate was about 3.8%.

2) One of the best tech start up cities: This area is known as “Silicon Hills” vs. San Jose, California’s “Silicon Valley”. As many of you may already know, a lot of California tech firms have either relocated here or expanded their operations here.

3) High quality of life: Austin has miles of biking paths, hiking trails, jogging paths and a great swimming hole called Barton Springs where the water averages 68 F which is awfully nice during our 90 F summers. It has been named a Green City and an Energy Efficient City by those folks passing out the titles for such things!

4) A great place for young and old: Austin was #2 by as the best city to raise a family. I can testify to that as this was one of the main reasons I decided to move here way back in 1981, when I was young(er). Now that I’m old(er) I still consider Austin a great place to call home. Forbes ranked Austin as a great place to retire. Austin has something for everyone!

5) Fun things to do: US News ranked Austin as the #6 place in the USA for fun things to do. To do what you ask? How about Austin City Limits, South by Southwest, F-1 racing, Austin Film Festival, the X Games, and that is the short list!

6) Low cost of living relative to income: In 2014 the median value of house in Austin was $245K vs. almost $290K in the USA. Comparing Austin home values to Silicon Hills home values Silicon Hills gets whooped even more! And don’t forget Texas does not have a state income tax.

So if you can’t live here at least you can invest your money here by buying Austin area residential real estate.

2015 Austin Economic Forecast

Guess what its growth! KVUE, a local TV station recently reported that Angelos Angelou, a local economic forecaster and a master of reading the local economic tea leaves, has predicted that this year will continue to see the growth that we saw in 2014. And what did we see in 2014?

Well 66,000 folks moved here. Why do they come you ask; because 39,000 jobs were created here. That equates to about 3,950 jobs a month or about 10 jobs a day. Wow! Austin in now the 16th largest city in the USA. We are larger that Washington DC or Seattle (so where is our professional football, basketball, and baseball teams?). Unfortunately our traffic is the 4th worst in the USA (no wonder will all the folks moving here). The city and state are making improve- ments for our traffic woes so I will give them credit for that.

It is a great time to own Austin area residential investment property – so enjoy it!

Austin Rental Rates Predicted to Climb

As recently reported in the Austin Business Journal, the rental rates for apartments are predicted to climb 4.5% in 2015. Not much new news there but the headline is a confirmation of what has been reported in other publications. Berkadia, a firm that specializes in the multifamily arena states that not only will rents continue to rise this year but that …that expected new apartment inventory of 10,400 units will be quickly absorbed. Last year the apartment market saw 9,150 new rental units absorbed from the 9,340 new units that came on line. They report that the vacancy rate of 4.5% is lowest that Austin has seen since 2006.

What a great time to be investing in Austin area residential real estate!

Forbes Picks Austin as #1 to Buy Investment Real Estate

This month Forbes chose Austin Texas as the number one place in the nation to purchase real estate as an investment. What a way to start off the New Year! It shouldn’t surprise any of us that already own Austin area residential rentals because we have been harvesting the rewards of our area for several years. The Forbes article is singing… my mantra, “now is a good time to buy and hold for a long time. The article went on to state that real estate purchased in one of their favorite places (Austin is numero uno) that it should be a safe bet. I have to interject and state that nothing is a “safe bet”, but investing in Austin area residential real estate is a darn good one. Forbes quoted a study done by Local Market Monitor. The study screened the 105 largest MSA’s with populations having a minimum of 550,000. It stated in part that the recession is getting “…long in the tooth…and fewer markets are undervalued”. I would agree with that; so what. What is important is the fact that you can make money by owning Austin area real estate. The article went on to state the reasons for being bulling on residential rentals and Austin in particular, is the promise of a good supply of renters. The Austin area population grew 8.9% between 2010 and 2013. Oh yes, and the traffic proves it!