If you hear someone talking about a hot real estate market, chances are they are talking about Austin, Texas, the most desirable real estate market in the country this year. The area has had incredible growth for many reasons. Not only is Austin a hot spot for growing technology companies, but it has some of the lowest housing prices, too. Couple that with the increasing demand, and you have a recipe for incredible real estate investment opportunities.
Despite the destruction the pandemic caused, Austin is making an incredible comeback, especially in the real estate industry. This year may just be the perfect time for investors to take advantage of the real estate market, getting ahead of the demand now, and standing ready for renters when they’re looking for a home.
The Austin Real Estate Market Trends
Austin continues to be a hot real estate market despite declining values and economic uncertainty. Buyers and renters fled from San Francisco during the height of the pandemic, and the trend continues even as the economy has swiftly rebounded.
During the 4th quarter of 2020, the Austin population jumped over 3 percent, a rare occurrence in large metro areas, such as Austin. The larger population means there is a much higher demand for real estate—which is excellent news for real estate investors.
So, what should real estate investors know about the real estate market?
Renters Can Afford More
Austin is in a unique position. With the incredible job market growth, there’s been an onslaught of highly educated people coming in, all of whom need a place to live. This is great news for investors because it means one thing: they can charge higher rent.
Because Austin is such an amenity-filled area, people are willing to pay more for rent, of course within the market’s average rent.
Occupancy Rates Are High
No one wants to rent in an area where occupancy rates are low, but that’s not an issue in Austin. Occupancy rates have always been high in Austin since it’s always been a hot area, but it’s gotten even more alluring in recent months.
A hot real estate market means fewer vacancies, and in many cases, it also means longer leases or the possibility of tenants renewing their lease. As a new investor to the area, this is music to your ears. Finding and keeping tenants is often the most challenging part of renting properties, so a high occupancy rate is reason enough to rent in Austin.
The Job Market Is Strong
Austin has always been a hot spot for big technology companies, but the pandemic made the area even more desirable. The following companies have either moved or are moving to the Austin area within the next year:
- Charles Schwab
This is just a shortlist of the companies moving to the area. With large companies taking over the area, it means thousands of people will need housing, making it a great time to…