Austin Millennials Home Buying Woes

A recent article in CultureMap, a local publication, had an article about the difficult challenges that millennials face in buying a house in the Austin area.  A survey of apartment renting millennials found that most would like to buy a house but can’t afford to do so right now.  Most said that they need at least 3 years to prepare to save for their home.  The survey showed that most thought that they needed about $23K to make the purchase come true.  However the amount needed is a bit over $31K.  With the respondents stating that they are saving about $194 a month towards the down payment they would have to save for over 10 years even if housing prices stay the same.  Fat chance of that happening!

So what does that mean for us investors of Austin area residential real estate?  Why it means that we are holding a product that is in demand, pays us a nice return on our invested dollar, and should continue to increase in price while a portion of society tries to catch up.

Rick Ebert / Austin, Texas / 27 April 16

Austin Area Continues Its Growth

As reported in the Austin American Statesman, the Austin metro area continues to grow and grow.  From March 2015 to March 1016 the area added a whopping 44,500 new jobs.  That’s enough citizens to qualify for small city status!  It also put the area over the 2 million mark.  This influx of people has put a strain on our roads and on housing.  We can’t do much about the traffic but talk housing and we can help.  Housing has lagged behind for several years now and it appears that this trend will continue in the future.  We help ease the housing pain by providing well positioned residential rentals to this influx of new Central Texans.  The average price of a house in Travis County reportedly went up 11% in 2015 and is pegged to increase 9% on top of that this year.  Wages can’t keep up with the housing increases as it takes more money to save for the moving target of a down payment.  By investing in Austin area rentals we not only provide a service to our newest transplants but increase our wealth through the monthly rental payments which covers the mortgage payment, taxes, insurance, etc.

Residential rentals are a great way to provide for retirement, college expenses, and to supplement or replace wages.

Rick Ebert / Austin, Texas / 12 April 16