How much cheaper is Austin Compared to ???

A recent article in the Austin Relocation Guide compared living in Austin to other major cities.  Specifically, how much money does it take to have a decent lifestyle in Austin when moving away from these cities?  The study assumed that the person was making $60,000 a year.

For instance it you make $60,000 in Detroit you only need to make $59,440 in Austin.  The plus side here is our winters are the envy of the nation.

Moving from here to Austin you only to make this much to have the same lifestyle:

San Francisco:                    $32,173
Boston:                                $39,397
Denver:                                $51,996
Seattle:                                 $39,381
New York City:                   $33,431
Los Angles:                         $39,819
Chicago:                              $48,354
Portland:                             $45,225

Why such a large gap in wages to sustain the lifestyle?  Because Texas does not have a state income tax and is frugal in spending tax dollars.  These reasons coupled with a favorable climate, good roads, and a can-do business attitude that attracts employers and thus creates jobs, means that you can live here for less than similar size cities.  And since these new arrivals need housing, coupled with the fact that the demographic of the typical renter and homeowner are changing, it means that landlords are in a great position.

Rick Ebert/ Austin, Texas / 29 April 17

 

What Renters Say About Renting

A recent article in the “Daily Real Estate News” quoted a survey from Freddie Mac of renters about how they view renting.  The information is pretty much on target with other information I have gleaned from other sources, so I consider the information in the survey to be more of a confirmation of trends that I have seen in the Austin area and with our managed properties.  Here it is:

  • Renters are not likely to move even if there is a rental increase
    • Overall percentage was 55% plan to stay
    • Those who stated that they plan to move within the next 2 years dropped from 38% to 33%
    • 60% of those aged between 35 to 49 stated that they plan on staying put vs. leaving even if there is a rental increase
  • Generally, renters like where they live and feel good about renting
  • Fewer renters are working towards home ownership
  • Fewer renters are planning to buy a home within the next few years
  • Of those surveyed who plan to move 59% plan on renting vs. buying a home
    • This is a 55% increase over September 2016
  • Tenants who expressed an interest in owning a home in the future dropped to 41% from 45% in September 2016.

So what does this tell us?  Answer:  That owning a residential rental that is in good repair and well maintained and located in a desirable area is a product that will have a tenant.  Reading between the lines, it also tells me that the tenant will take some pride in residing in the property which should translate to taking care of it.  All the while as home prices continue to rise in our area we have a tenant who is helping us increase our equity position in the property and provides cash flow.

How sweet it is!

~Rick Ebert