The I-35 Firewall & The Texas Economy Good News!

According to a news article in the Dallas Morning News today, Texas will fare quite well in spite of falling oil prices.  Of course if you live in “Oil Patch, Texas” you will feel the pain, but Dallas, Austin, and San Antonio will be just fine as the “Big 3” continue to add jobs which will offset the declines in the states oil industry.  The Big 3 added 168,000 jobs last year the exact gain for the state – wow!  In some respects the Big 3 may even benefit from falling oil prices as more folks in these cities have more money to spend on restaurant and entertainment due to cheaper gas (go figure).  According to Keith Richards, the Dallas Fed chairman, Texas won’t experience the downfall that it did in the 80’s because the state is so diversified.  The Big 3 are underrepresented in the oil industry and shouldn’t be impacted by the fall of oil prices.

With real estate prices continuing to increase in the Austin area coupled with the roller coaster of the stock market, now is a good time to catch the real estate wagon before it’s too late by buying a real estate investment.  Did I mention that Austin area rents are strong and predicted to continue that trend for the next several years?

Rick Ebert / Austin, Texas / 26 Jan 16

Apartment Rents Still Rising

Reis, a national real estate research firm stated in a recent study that nationally apartment rents average $1,180 up from $1,125 from a year ago.  In the fourth quarter,  2015 apartment rents rose 4.7% over the fourth quarter of 2014.  The National Association of REALTORS® reports that the number of first time home buyers is at a 3 decade low, attributing this to the increased difficulty for first time home buyers to save for the down payment.  As I’ve stated before, it is difficult for first time home buyers, who are usually renters, to pay higher rents and to save money for a down payment for a house.  Although rents can’t continue to increase forever they will probably remain strong.  Why?  If there fewer first time buyers developers and builders will not build as many houses and this will shrink up financing options for these projects.  With less housing inventory the price of these homes will increase making it even more difficult for first time home buyers to purchase a home.  This in turn will keep rents high as there are fewer buying opportunities thus increasing the difficulty even more  for renters to save for the down payment.

So until this scenario changes we investors in Austin area residential real estate are in a great position to reap the benefits of our investment by providing good housing for renters.

Happy New Year!

Rick Ebert / Austin Texas / 13 Jan 16

Austin, TX Property Code Compliance | Professional Property Management Education

Today we are discussing Property Code compliance for Landlords and Property Management in Austin, including security devices and safety devices, habitability, city regulations and association regulations for your Austin rental property. Read more