The current upturn in Austin’s economy is due to the surge in the technology industry, as cost-conscious employers are attracted to the city’s business-friendly market. Several major Silicon Valley firms maintain a significant presence in the Austin market, which helps shape its youthful culture; this Texas city is also relatively affordable, and therefore desirable by millennials. For instance, Apple’s second-largest global campus is in Northwest Austin, and the firm is adding hundreds of new jobs every year.
In fact, Austin’s employment growth of 4.3 percent was among the highest in the nation during the 12-month period ending in the first quarter.
With a growing job market, the robust economy of Austin has facilitated a tight rental market, enabling landlords to push rents aggressively in recent years. Some of that pressure is expected to be relieved in the coming quarters as apartment construction booms. Currently, the number of underway units represents more than 6 percent of existing inventory. According to HomeUnion®’s Research Services team, “the Downtown submarket faces the greatest threat of short-term oversupply.”
Forecast for the Austin Market
Learn more about what is anticipated for the Austin market by downloading the full report created by our Research Services team. This report covers multiple economic factors that determine risk and reward for single family investors.