Austin’s immense population growth during the past decade has heavily impacted its real estate market. In 2019, the median home value in Austin increased by 5.3%. Home prices in the Austin real estate market are expected to rise at a steady pace in 2020. Let’s discuss a bit about Austin before discussing why you’d want to invest in its real estate market in 2020.
Austin is the capital of Texas and it is growing at a fast clip. It is the fourth largest city in the state of Texas. The Austin real estate market isn’t the largest in the state of Texas, but there are a number of reasons to consider buying real estate in this city. The Austin housing market has gained a lot of steam, with home values almost doubling since 2010.
The Austin real estate market isn’t as big as Dallas, San Antonio or Houston. However, the Austin housing market is sizable – it is the eleventh largest city in the U.S. as of this writing, and it is the center of a large metro area. Austin has come up as another tech hub in last 5 to 6 years. There are tons of high paying tech jobs moved to Austin in last couple of years. The Austin-Round Rock metro area is home to about two million people. Recently Austin was ranked eighth for the best real estate markets, topping all other big Texas cities.
Austin has a record of being one of the best long term real estate investments in the U.S. over the past 10 years. In December 2019, the median home price increased 8% year-over-year to $405,093. In the latest quarter, real estate appreciation rate in Austin has been around 2.7%. If it remains steady, the annualized appreciation rate would be around 10.8%, which could trigger off massive interest in the Austin real estate investment opportunities.
In this article, we shall discuss some more important reasons why you may want to consider buying Austin investment properties in 2020. Please note that there are many variables that can potentially impact the value of a home in Austin (or any other market) and some of these variables are impossible to predict in advance.
Is Austin Housing Market In A Bubble?
Austin is one of only eight U.S. metro areas to have fully recovered in the last 10 years to pre-recession values. Would Austin remain as one of the top real estate markets in the country or would the bubble burst? Well, Austin isn’t considered to be in a real estate bubble because the demand is consistently high and inventory is very tight. This is good news for investors because you can expect steady activity and flow of people looking for housing.
In 2019, Austin continued to rank high on “Best of U.S.” lists. There were record number of home sales in 2019. The December and Year-End 2019 Central Texas Housing Market Report reflects a record-breaking 33,084 home sales and $13B in sales volume. According to Austin Board of REALTORS® (ABoR), between 2010 and 2019 the home sales have increased by 84%. The median home price in Austin has increased from $193,520 in 2010 to $318,000 in 2019, and the market is not showing signs of slowing down in 2020.
The price of Austin properties declined following the 2007 peak while prices remained relatively flat following the 1995 and 2000 peaks. According to a report published in Williamskw.com, Austin will remain a seller’s market. The National Association of Realtors (NAR) suggests a “balanced” market is between 4-6 months of inventory. The entire Austin market is around 2.5 months. Austin inventory levels and number of days a home is listed for sale are increasing, yet not nearly enough for Austin to be a “buyers” market. That is not expected to change.
As Austin is a young city by many standards, Millennials will be the largest buying force in Austin in the upcoming years. This is going to be more attractive for the areas being close to neighborhood amenities and close by shopping & hang out spots. Real estate industry experts think that there is a no bubble. Austin’s economy is strong, and varied. Overall there is a huge scarcity of homes for sale in Austin. It just hasn’t kept up with the pace of people moving here.
Austin Real Estate Market Forecast 2020
What are the Austin real estate market predictions for 2020? Austin housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. In 2019, Austin’s median home price increased by 5.3% to $395,000 compared to the previous year. In December, the median home price increased 8% year over year to $405,093 and sales increased 8.9% year over year to 738 home sales.
The latest real estate data from Zillow shows that the current median home value in Austin is $390,347. Austin is currently a seller’s real estate market – which means that the demand from buyers is exceeding the current supply of homes for sale. Pricing of homes is trending higher and is more attractive for sellers in the current phase.
Austin real estate prices have risen by 4.6% in past year. The Austin real estate market forecast is that home prices will continue to increase by 2.7% in the next twelve months. Since 2015, the median home price in Austin has increased from $300,000 to $400,000.
Here is the Austin, TX real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.7% till Dec 2020.
The median list price per square foot in Austin is $231, which is higher than the Austin-Round Rock Metro average of $158. Zillow reports that 10.3% of the listings in Austin had a price cut in Dec 2019, which is a good thing for buyers. The median price of current listings in Austin is $400,000. The median rent price in Austin is $1,750, which is higher than the Austin-Round Rock Metro median of $1,700.
Austin Housing Market Forecast 2019 – 2021
Here is a short and crisp Austin housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Austin is 74% and it is predicting a positive trend. The LittleBigHomes.com estimates that the probability for rising home prices in Austin is 74% during this period. If this price forecast is correct, the Austin home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Austin Real Estate Market Forecast.
Austin Real Estate Market Trends
We shall now discuss some of the most recent housing trends in the Austin area and compare it with past couple of years. We shall mainly discuss about median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region. A report from Trulia ranked Austin among 10 U.S. markets where list prices have stalled over the past year.
The Austin-Round Rock metro area ranks second on the list, with a median home price decrease of 3.4 percent over the past year. Trulia currently has 2,515 resale and new homes for sale in Austin, TX. These include open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
If you look back in the first half of 2018, home prices in Austin continued to increase and housing inventory levels slowly declined amidst strong housing demand. The Austin-Round Rock area sold 3,299 single-family homes in the month of June, down from 3,415 in 2017. Even with the decline, however, the median price for a single-family home in Austin still rose 4.9 percent year-over-year to $326,250.
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
According to Austin Board of REALTORS, in the Austin-Round Rock MSA, the median price for single-family homes increased by 2.6% to $318,000 in 2019. During the same period, sales increased by 7.2% to 33,084 sales. New listings for the five-county MSA increased year over year by 1.4% to 39,309 listings in 2019. Active listings decreased 4.3% to 6,216 listings, but pending sales increased 10.5% to 33,976 pending sales.
In December 2019, sales volume in the Greater Austin area increased by 9.2% to 2,608 sales, while inventory decreased by 0.5 months to 1.7 months of inventory. Growing demand pushed the median price of a single-family home to $323,000, a 7.1% increase from December 2018.
Currently, there are 1180 single family homes for sale in Austin, TX on Zillow. Additionally, there are 851 single family homes for rent in Austin, TX. Under potential listings, there are about 5 Foreclosed and 24 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
As per the real estate company called Neigborhoodscout.com, the median house price in Austin is $336,855, which indicates that home prices in Austin are well above the national average for all cities and towns in the United States. One and two bedroom single-family detached homes are the most common housing units in Austin. Other types of housing that are prevalent in Austin include duplexes, row houses and homes converted to apartments.
In the past month, 715 homes have been sold in Austin, TX on Redfin.com. In addition to houses in Austin, there were also 681 condos, 49 townhouses, and 78 multi-family units for sale in Austin last month. The median listing price is around $459,000. According their statistics, the Austin housing market is very competitive. Homes in Austin receive 1 offers on average and sell in around 30 days. The average sale price of a home in Austin was $392K last month, up 13.1% since last year.
The average sale price per square foot in Austin is $218, up 8.5% since last year. A hot listing in Austin can sell for around list price and go pending in around 6 days.
Here is the latest Austin housing market data for the month of Jan 2020 from Redfin.com. The sale to list price ratio shows us that it was a trending more like a seller’s real estate market in the past month.
Austin Housing Market Trends
|Median List Price||$459,000|
|Avg. Sale / List||98.3%|
|Median List $/Sq Ft||$253|
|Median Sale Price||$392,000|
|Median Sale $/Sq Ft||$218|
Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving. There are currently 3,936 homes for sale in Austin on Realtor.com. The asking price of single family homes can start from $165,000 and can go up to $45M for a luxury property located in Northwest Austin neighborhood in the city of Austin, TX. Northwest Austin is a popular neighborhood with the median home price of $427,000. Zillow predicts the home values in this neighborhood will increase by 0.2% in the next 12 months.
Another popular neighborhood of Austin is Austins’ Colony where the median home price is around $196,000. Austin has a mixture of owner-occupied and renter-occupied housing. There are currently 4,588 rental properties in Austin and their rent prices range from $120 to $219,500 per month. The median rent price in Austin is $1,890. There are only 1177 new construction homes for sale in Austin within a price range of $189,900 to $6.6M.
The most affordable new construction homes are located in the Southeast neighborhood with zip code 78744. Zillow predicts Southeast home values will increase 3.5% next year, compared to a 4.6% increase for Austin as a whole. According to Realtor.com, the Austin housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Austin, the sellers have held good leverage in these negotiations in the past month. On an average, they could sell homes for 98.87% of the asking price. A seller would always prefer scenarios which can yield a ratio of 100% or higher. The median list price of homes in Austin, TX was $432.2K in December 2019, trending up 5.5% year-over-year. The median listing price per square foot was $230.
The median list price in Austin is $529,450 on Movoto.com. The median list price in Austin went up 5% from January to February. Austin’s home resale inventories is 1,422, which decreased 2 percent since January 2020. The median list price per square foot in Austin is $317.
As you can see in the graph, the median price per sq ft in Austin rose to its peak value in Dec 2019, when it was $280. In January 2020 it was $301. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in February
Austin is a minimally walkable city in Travis County with a population of approximately 790,195 people. If you are looking to invest in the Austin real estate, you should that three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Austin investment real estate and you should be able flip it for a lump sum profit.
The neighborhoods in Austin must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools and shopping malls. West Lake Hills has a median listing price of $1.2M, making it the most expensive neighborhood of Austin. Texas. North Austin is the most affordable neighborhood, with a median listing price of $325,000.
Some of the popular neighborhoods in Austin are Northwest Hills, Downtown Austin, West Lake Hills, Brushy Creek, Barton Creek, Spicewood Summit, Mueller, South Austin, Hyde Park, Windsor Park, Crestview, North Austin, Allandale, Shady Hollow, Rollingwood and Steiner Ranch.
Here is a snapshot that shows the median home values in the some of the neighborhoods of Austin.
Austin Downtown Real Estate Market Trends
Downtown Austin is generally considered to range from East Martin Luther King Jr. Boulevard to Lady Bird Lake (north to south), with the eastern and western boundaries being I-35 and North Lamar Boulevard, respectively. According to a report in Austin.curbed.com, the average asking price for Downtown properties is $602 per square foot, ranging from $205 per square foot (a planned single-family Clayton & Little home in Judge’s Hill asking $1.15 million) to $1,500 per square foot (a penthouse at the W Residences designed by Michael Hsu on the market for $3.45 million).
The below chart from NeighborhoodX shows price per sq.ft. for homes in Downtown Austin. Last year, the average asking price was $609 per square foot, ranging from $273 per square foot to $1,589 per square foot.
Austin, TX Foreclosures And Bank Owned Homes Statistics
As per the Austin foreclosure data by Zillow, the percent of delinquent mortgages in Austin is 0.4%, which is lower than the national value of 1.1%. According to a report, the Austin area saw a 65 percent increase in what’s known as foreclosure starts in May 2018 compared with May 2017; that was followed by year-over-year increases of 44 percent and 29 percent in June 2018 and July 2018, respectively. The total number of foreclosure starts in Austin in July 2018 was 126.
|Total No. of Foreclosures in Austin||178 (RealtyTrac)|
|Homes for Sale in Austin||568|
|Median List Price||$425,000 (0% rise vs Nov 2018)|
There are currently 178 properties in Austin, TX that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 568. In December 2019, the number of properties that received a foreclosure filing in Austin, TX was 17% lower than the previous month and 26% higher than the same time last year.
In Austin, the zip code with the highest foreclosure rate is 78721, where 1 in every 1158 housing units is foreclosed. 78735 zip code has the lowest foreclosure rate, where 1 in every 4088 housing units becomes delinquent.
What Is The Cost of living In Austin, TX?
Austin is the capital of Texas. The Austin-Round Rock metro area is home to about two million people. The city is known as a haven for live music, free thinking and free spirits. It has a distinct culture and flavor compared to the rest of Texas, which is a mostly conservative and traditional state.
According to WalletHub, among large U.S. cities, Austin ranked eighth, topping all other big Texas cities as well as San Jose, California; Atlanta; and Portland, Oregon. Among all 300 cities, Austin still ranked a respectable No. 36 for best real estate markets
Aside from high housing prices, the cost of living in Austin is relatively affordable. Overall, the cost of living for Austin is very reasonable. At three percent below the national average cost of living, moving to Austin may be an economical choice for you.
One of the most interesting factors in the cost of living for Austin is that the cost of housing is 15 percent below the national average. According to Sperling’s Best Places, grocery costs in Austin are slightly below the national average, with a rating of 89.1 against the U.S. average of 100, meaning it is about 11 percent lower than the national average on groceries.
The sales tax rate in Austin is 8.25 percent. There are no income taxes in Texas. Schools are largely funded through property taxes, which rise along with home prices. As home prices continue to skyrocket and people are increasingly forced to move to the distant suburbs to find affordable housing, a massive reworking of Austin’s building codes, known as CodeNext, promised to deliver some relief.
The median salary in Austin, TX is $51,596 and it is the 108th most expensive city in a database of 232 cities by NerdWallet.com. For a 2-bedroom apartment the median rent per is $1,184. The median price for 3/2 bedroom house is $276,634. Food and entertainment costs in Austin are reasonable. Redwood Austin is the area with the lowest cost of living.
Top 10 Areas With The Lowest Cost of Living in Austin – (List by Niche.com & prices by Livability.com)
- Redwood, Texas – Located in Guadalupe County. The median income in Redwood , TX is $47,778 and the median home value is $54,700.
- Lockhart, Texas – Located in Caldwell County. The median income in Lockhart , TX is $48,884 and the median home value is $115,400.
- Martindale, Texas – Located in Caldwell County. The median income in Martindale , TX is $43,929 and the median home value is $151,200.
- Uhland, Texas – Located in Hays County. The median income in Uhland , TX is $40,662 and the median home value is $78,100.
- Taylor, Texas – Located in Williamson County. The median income in Taylor , TX is $42,793 and the median home value is $116,600.
- Lago Vista, Texas – Located in Travis County. The median income in Lago Vista , TX is $75,126 and the median home value is $189,400.
- Elgin, Texas – Located in Bastrop County. The median income in Elgin , TX is $50,369 and the median home value is $104,000.
- Hornsby Bend, Texas – Located in Travis County. The median income in Hornsby Bend , TX is $49,077 and the median home value is $123,000.
- Round Rock, Texas – Located in Williamson County. The median income in Round Rock, TX is $72,412 and the median home value is $179,900.
- Wimberley, Texas – Located in Hays County. The median income in Wimberley , TX is $59,167 and the median home value is $214,600.
Is Austin a Good Place For Real Estate Investment?
Is Austin a Good Place to Invest In Real Estate? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Austin is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Austin housing market 2020 forecast for answers on why to put resources into this sizzling market.
Although, this article alone is not a comprehensive source to make a final investment decision for Austin, but we have collected ten evidence based positive things for those who are keen to invest in the Austin real estate in 2020. Let’s take a look at the number of positive things going on in the Austin real estate market which can help investors who are keen to buy an investment property in this city.
1. The Massive Student Population
Many people want to invest in the Austin real estate market because there is a massive student population that will rent properties for a premium if they’re in easy commuting distance of the University of Texas Austin campus. That school alone has more than 40,000 students. The Austin community college hosts about as many students as UT Austin. Huston Tillotson University, Saint Edward’s University and National American University are also located in this city.
2. Austin Is The Silicon Prairie
Austin Texas has been nicknamed Silicon Hills and Silicon Prairie because they’ve attracted so many high tech employers. This has resulted in an active upscale Austin real estate market. Austin’s GDP, which grew 117% over the last 20 years, helped the real estate market recover from the recession. The closest metro to see this type of growth was Silicon Valley, which grew its GDP by 99% during the same period. Major local employers in Austin include IBM, Amazon, Apple, Cisco Systems and a number of semiconductor manufacturers. There are more than 3300 tech companies in the region and more than 100,000 tech workers all competing for homes in the Austin real estate market.
3. Austin, the Hidden Health Hub
One of the long-term strengths of the Austin is its diverse economy. The Austin real estate market dipped after the layoffs of the Dot-Com boom. They decided to solve the problem by encouraging medical and biotech employers to relocate to the area, too. As of this writing, there are 85 biotech and pharmaceutical companies in Austin.
4. Austin, the State Capital
Texas is unique for having a biannual legislature. They don’t have the state legislature in town year round. Instead, they are only in session several months every two years. This leads to an influx of legislators, reporters and lobbyists every other year. This creates a unique but predictable boom and bust for the Austin housing market in the vicinity of the capital building.
5. Quality of Life
One of the factors driving the Austin real estate market is the intangible but well documented quality of life the city provides. In 2017, US News and World Report ranked the city first for quality of life. In 2016, Austin was ranked first on a Forbes list of Cities of the Future list. In 2017, that same magazine ranked the South River City neighborhood as one of the best for Millennials. WalletHub ranked the city sixth in their list of best places to live in 2017. In 2012, the FBI ranked Austin one of the safest cities in the country.
6. A Relatively Friendly City for Landlords
T.exas in general is very landlord friendly, though cities can have their own, stricter ordinances. Texas doesn’t specifically let tenants withhold rent for failure to provide essential services. You can evict someone for nonpayment of rent after three days. Texas doesn’t set a limit on security deposits. Texas doesn’t require a minimum time frame before you increase the rent.
For major lease violations, you can terminate the lease then and there and give them three days to vacate. Knowing you won’t spend months trying to evict a non-paying tenant is a good reason to consider the Austin real estate market or another Texas housing market over more liberal cities.
7. The Excellent Tax Environment
Texas’ property taxes may be high, but this is offset by the lack of a state income tax. There is, overall, a low state and local tax burden for investors. That makes this a great place to buy a home and rent it out.
8. Affordable Real Estate
Homes in Austin are 23% cheaper than the national average. It may be the second most expensive housing market in the state with a median home price of around $350,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.
For example, studio apartments rent for around $780 in Austin versus the $700 national average, while an Austin 1 bedroom apartment rents for almost a $1000 though the national average is $825 a month. A three bedroom apartment in Austin rents for $1500-$1600 while the national average is closer to $1400 a month.
9. Positive Demographic Momentum
About half of Austin’s population is between 18 and 44, though that figure is skewed by the large student population. However, the reality is that many college graduates choose to stay here because of the abundant, well-paying jobs. After all, Austin has the highest per capita of high paying jobs of any Texas city. This helps explain why the Austin housing market is growing at the fastest rate of any major city in Texas. Many of these young adults are starting their families here, creating certain future demand for housing in the Austin real estate market.
10. Certain Future Appreciation for Austin Real Estate
An author in Forbes wrote in 2016 that Austin real estate is appreciating at one of the highest rates in the state because of NIMBY-ism, a reluctance to develop riverfront or Texas hill country to build new homes. This has pushed development out along the highway and forced dense development in areas already zoned for housing.
This pushes up the price for existing homes, driving many in the Austin housing market to rent when they want to buy, while it guarantees capital gains for those who buy and hold property. During the latest twelve months, Austin’s real estate appreciation rate, at 7.01%, has been at or slightly above the national average. In the latest quarter, Austin’s real estate appreciation rate has been 2.05%, which annualizes to a rate of 8.45%.
Investing in Austin Real Estate or Not: The Conclusion
Maybe you have done a bit of real estate investing in Austin, TX but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider Austin real estate investment? With Austin becoming a more diverse city every year, there are plenty of opportunities to take advantage of – from buying new homes to different investing options in the Austin real estate market.
Austin is a leader across the country with jobs and when you combine that with home prices not as drastically increasing, you’ll get a real estate market that many others envy. A good cash flow from Austin investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Austin real estate investment opportunity would be a key to your success. If you invest wisely in the Austin real estate, you could secure your future.
As with any real estate purchase, act wisely. Evaluate the specifics of the Austin housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Austin. If it is your first time to invest in Austin real estate, then you would have to be aware of common beginner’s mistakes. Beginners would usually follow the media, buy a property and wait for its value to increase. This could be risky. Real estate investing requires research. We recommend doing your own research or hiring a real estate investment specialist for guidance.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Austin real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
The Best Cities In Texas For Real Estate Investment in 2020
Apart from the Austin real estate market, you can also invest in the housing market of Houston, TX. If you are a home buyer or real estate investor, Houston definitely has a track record of being one of the best long term real estate investments in the nation through the last ten years. The Houston Real Estate Market forecast is good, and current housing prices are relatively low, so if you want to get on board the Houston real estate investing then now would be a great time to do so. The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value.
The El Paso real estate market is another hot market to invest in. El Paso real estate market was ranked at 4th in Trulia’s hottest real estate markets to watch in 2018. El Paso’s strong job growth, affordability, low vacancy rates and high population of young household were pivotal in the ranking process. The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin.
The Central, Cielo Vista and Mesa Hills areas offer more affordable rental properties for sale, while neighborhoods in the northwestern and eastern parts of the metro area have some of the more expensive housing inventory. The amount residents spend on everyday expenses, such as food and transportation, is slightly less than what the average American pays.
The next one is the San Antonio real estate market. The median home value in San Antonio is $184,322. San Antonio home values have gone up 4.8% over the past year and Zillow predicts they will rise 1.9% by Dec 2020. For those who want to invest in rental real estate, the San Antonio real estate market is an ideal location because of the outsized military presence. Fort Sam Houston is located inside the city limits. Lackland Air Force Base, Randolph Air Force Base, Camp Bullis and Camp Stanley are located in the immediate vicinity.
This means that there is a large population that will almost always rent because they don’t know where they’ll be sent on their next assignment. San Antonio has a dearth of affordable housing because demand is so much greater than the supply. This has created a large number of renters who need to pay quite a bit to rent apartments or single family homes. We know there is a lack of housing relative to demand when a balanced market has a 6 month home inventory and San Antonio has only a two month inventory.
How can we not mention Dallas in this list? The Dallas housing market 2020 is shaping up to continue the trend of the last few years as one of the strongest markets in the United States. Despite some fluctuations in the market, demand and sales have continued to climb at a feverish pace for more than two years and show no signs of stopping. Dallas’s local economy is a mix of aerospace, computer chips, telecommunications, transport, energy, and healthcare sectors and the Finance and Business services. These sectors are all providers of good wages which allows for a strong market for Dallas investment properties.
Dallas’s population has grown at twice the national rate for years now and this pushes the prices of Dallas investment properties higher due to builders not being able to keep up. Dallas’s housing prices have increased 29% over the last three years, even with these increases in home prices, they are still competitive for investment properties and you can expect further increases over the years. If you want to buy an investment property in Dallas, don’t wait around, go ahead and do it.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
UT Austin / Austin colleges
Cost of Living
Latest Market Prices, Trends & Forecasts
Is Austin In A Bubble