Why Invest in Austin Real Estate?
A robust economy, favorable business conditions, and a large pool of working millennials are among the factors which distinguish the city of Austin – and Silicon Valley has taken notice. In fact, several major Silicon Valley firms continue to maintain a significant presence in this Texas market. This, combined with the fact that local apartment development is set to explode, makes Austin a logical choice for investors.
Employment rate in Austin went up 2.2% in the last year, which means that it outpaced other top metro areas in the US. Furthermore, many of Austin’s jobs are well-paying tech positions, attracting millennials and making it a city of the future. As a large segment of the millennial population prefers to rent – and delay homeownership for an extended period of time – this represents another favorable condition for investors.
The capital of Texas is home to some of the largest tech companies in America. With low taxes and no state income tax, young graduated professionals continue to create new start-up companies in the area. Austin, or the “Live Music Capital of the World”, hosts some of the largest music festivals of the year including South by Southwest and Austin City Limits.
Ranked as one of the fittest cities in America, the people of Austin like to exercise. There are over 250 gyms, yoga studios, over 280 parks, biking and running trails, and healthy restaurants and stores contributing to the economic climate. With a strong presence of infrastructure, people live in a variety of places. The city of Austin is projected to be home to roughly 4.5 million people by 2040 and the metro currently has over 2 million. Austin is a great location for housing investment and has been ranked the #1 real estate market to watch in the PwC’s annual 2020 Emerging Trends in Real Estate: United States and Canada report.
Market Highlights
- Austin’s unemployment rate of 2.4% in October 2019 is the lowest among large metropolitan areas
- A strong job market and low cost of living resulted in an over 23% population growth between 2010 and 2017, and continuing to grow
- ##1 ranked real estate market to invest (PwC US and Urban Land Institute)
- 1st fastest-growing large city in 2019
- Austin is ranked the 2nd best city to get a job (Forbes)
- Fortune 500 companies Whole Foods Market and Dell Technologies located here
- #1 US city to start a business (CNBC)
- The Austin Metropolitan Area is predicted to experience a population growth rate of 31.6% between 2020 and 2030
- More music venues per capita than anywhere in the world
- 4th dog-friendly city in the U.S.
- Tech companies with regional headquarters: Apple, AMD, AT&T, Dell, Google, Facebook, 3M, and PayPal
- Home to the South by Southwest Music Festival and Austin City Limits
- 3.3% job growth year over year
- No state income tax = strong rent growth
Northwest Austin
Known for its lake access, the northwest is home to the top school district in Texas and 2nd best school district in Austin. The area gets significantly more expensive as you move closer to the city center.
- Whole Foods World Headquarters
- Zilker Metropolitan Park - site of Austin’s music festivals, recreational area alongside Lady Bird Lake
- Sixth Street - Nightlife, food, music & bars
- Austin Aquarium
- Apple Inc.
- Facebook Corporate Office - downtown
- Oracle Corporate - edge of Austin
- PayPal - next to Oracle
Northeast Austin
The University of Texas at Austin is a major asset to this area. The university is nationally recognized for athletics and academics. Just north are Round Rock and Georgetown. Georgetown is the 7th fastest growing city in the U.S. for 2018 (Census Bureau)
- Dell Headquarters - RoundRock
- Google Office - north Austin
- Amazon Fulfillment Center - north Austin
- The University of Texas at Austin
- Paramount Theater - historic venue for entertainment
- Central Market - huge gourmet marketplace 4 miles from downtown
- The Domain - upscale mall /office space
- LBJ Presidential Library - President Johnson’s story downtown
- Cap City Comedy Club - a popular place for standup comedy
- Dell Diamond - AAA baseball stadium in Round Rock
- Southwestern University - in Georgetown
Southwest Austin
Zilker Metro Park attracts people from all over. Whether its music festivals or a stroll in the park, there are plenty of activities in the southwest. Consider investing close to the southwest because Zilker Metro Park hosts Austin’s large music festivals.
- Zilker Metropolitan Park - site of Austin’s music festivals, recreational area alongside Lady Bird Lake
- The Long Center for Performing Arts - borders the Colorado River
- St. Edwards University - private liberal arts, Roman Catholic university
- Barton Creek Square - shopping complex 5 miles from downtown
Southeast Austin
The southeast is home to Austin’s largest airport and the Colorado River.
- Austin Bergstrom International Airport
- Austin Convention Center - music festivals
- Circuit of the Americas - state of the art raceway & amphitheater 14 miles outside downtown
- Lady Bird Lake - a reservoir on the Colorado River, running, biking, kayaking
- McKinney Falls State Park - camping, hiking, fishing
HomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Austin,TX; and across the United States and calculate home values RENTestimate for every property in Austin, TX. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.
