Austin’s real estate market is always raging. With its wide choice of suburban and urban areas, as well as affordable living and picturesque landscapes, many people choose to call this big city their home.
Current conditions in the Austin real estate market
- The average home price rose 42.4% over last year.
- The number of households in Austin has increased by 31,700 households over the past year.
- Rental prices have risen, as have the number of rental areas.
Buying a home in Austin
Austin house prices
Median home value in Austin: $ 465,000
National average: $ 371,000
Housing prices in the Austin metropolitan area have risen significantly over the past year. Nationally, house prices have risen 22.4%, which is surprising in itself. However, in Austin, house prices have almost doubled. With prices rising 42.2% in Austin, prices are higher than ever before. Homes in Austin average $ 465,000, up from just $ 256,000 just 5 years ago. What’s more, house prices in Austin are still skyrocketing.
As Austin sees a spike in home prices, this big city is seeing a decline in housing supply. Compared to the same period last year, the supply of housing decreased by 1.49 months, and now the supply of housing is 1.1 months. The trend is similar to the national average, where supply in both housing markets is usually 2 to 3 months. With a minimum supply of housing on the market, competition is high. Homes are selling quickly at prices well above the asking price. It is more difficult to enter this market now than in previous years. This is great news for sellers, as their investments are very profitable. Demand is high and supply is low, making it a real seller’s market. Buyers should expect to pay more for a home and make extremely good deals in order to make a successful purchase in this city. Although house prices continue to rise, investors may want to enter now while the market is hot, before prices go even higher.
Buying real estate in Austin
Investors looking for buy property for rent in the Austin area, you need to keep in mind the rise in house prices. While house prices have risen substantially, rents have not risen as rapidly. There are also a lot of vacancies now, and that’s something else to think about.
Austin rental prices
Average rental price in Austin: $ 1504.
National average: $ 1704
Rental prices have gone up. Austin rental prices are up 3.9% year over year. Nationally, growth was 3%. Overall, however, Austin rental prices are low compared to the national average. Taking into account the average cost of a home, the Austin rental market is characterized by low prices compared to national ones, where house prices are lower and rental prices are higher. However, Austin rental prices have continued to rise steadily over the past 5 years, so this is good news for investors.
Jobs in Austin: 11%
National average: 6.8%
Currently, the number of vacancies in Austin is 11%. They are up 2.3% year on year and are fluctuating wildly. In October 2020, the number of vacancies dropped to 3%. While this city has its ups and downs in rental vacancies, it’s important to remember that some areas are more prone to growth than others. In the vicinity of colleges or popular tourist destinations, the number of vacancies may vary depending on the time of year. Suburban, family-friendly areas may have a safer vacancy rate.
Austin foreclosure rate: 0.2%
National average: 0.3%
Foreclosures in Austin, as in much of the country, is at an all-time low. A decrease of 0.1% last year, foreclosures are difficult to obtain. Given the shortage of homes, more people and investors were taking out foreclosures to remodel and live or flip and sell. Many TV shows and blogs about flipping and DIY repairs have encouraged buyoutleading to a shortage. This result benefits the real estate market. Fewer abandoned and dilapidated homes in a block means more value for nearby homes. For investors looking to make more profits, the absence of foreclosures means increased competition and fewer investment opportunities.
River City is one of the most expensive areas in Austin. The median home price is over $ 1.5 million and the median rent is around $ 2,500. Here you will find large houses with at least 3-5 bedrooms. The area is dominated by a mixture of private houses and residential complexes occupied by tenants and owners. The houses and complexes in the area are somewhat newer, mostly built in 1970-1990, and also recently built. This affluent area is home to highly educated residents in a variety of leadership and professional positions. Nearly a quarter of these professionals work remotely in their large, stately homes. Expensive cars and vacations, as well as highly regarded private schools, are the way of life for River City residents.
E Oltorf St / E. Live Oak St.
A popular college district in Austin is E Oltorf St / E. Live Oak St. The average property price here is around $ 527,325, and the rent is around $ 1,600 per month. About 86% of housing here is rented, and the vacancy rate is 7.8%. The real estate market is dominated by high-rise apartment buildings and complexes consisting of studios and 1- or 4-bedroom apartments, with some buildings dating back to the 1940s. Most of them are newer, built in 1970-1990. Many residents here study in colleges (21.5%) and work in professional fields, in sales and service, technical support and fast food restaurants. This area is considered to be below average income.
Hornsby Bend is a suburban area in Austin worth taking a look at. The houses here cost about $ 178,133 and rent is currently $ 2,032. These are excellent returns for investors; however, most of the properties here are occupied by the owners. The homes here are mostly 3-4 bedroom single family homes and mobile homes. With a vacancy rate of 4.8%, the district is in demand. Most of the houses are newer, 62.8% of real estate here was built in the 2000s. This middle-income area is home to many residents working in manufacturing and workplaces, as well as some professionals, sales and services. More than half of the population here speaks Spanish and has Mexican roots.
Austin economic condition
As with all major cities, the 2020 pandemic has caused huge problems for businesses, resulting in a sharp increase in unemployment. As businesses try to get back to normal and hire employees again, Austin’s unemployment rate is dropping again, but it takes time to get back to pre-Covid numbers.
Austin unemployment rate: 5.3%.
National average: 6.1%
In February 2020, Austin’s unemployment rate was decent at 2.6%. Then there was a surge to 11.8% as the world grappled with the pandemic and uncertainty about jobs and business. Although Austin’s rate has been declining and has definitely dropped from where it was, it is nonetheless up 1.5% over last year. Compared to the national average, Austin is lower, but nationally it is still declining. The national average for the last year has decreased by 8.7%. Austin unemployment rate goes down but still not back to where he was before the pandemic. The employment rate increased by 119,600 jobs. It just takes a little longer to get back to normal.
Austin’s Top Employers
The largest employer in Austin is Texas. As the state capital and the second largest state in the country, Austin has a lot to take care of. More than 65,000 people are employed in government positions. These positions range from administrative to managerial as well as agricultural and blue-collar jobs.
Dell Inc. (NYSE: DELL) is the next largest employer in Austin with over 17,000 employees. Dell Inc. headquarters is located in Round Rock, Texas. This company develops and markets computers and services, and offers jobs for all skill levels.
More than 13,000 people work at the University of Texas at Austin, a national research university. It offers a wide range of job opportunities as well as generous compensation. This magnificent campus has 50,000 students studying in a variety of programs and specialties.
Austin real estate market results
Austin’s real estate market has very promising and thriving prospects. Housing prices have skyrocketed and over 30,000 new families have settled in Austin over the past year. Rental prices have gone up and job opportunities are on the rise. The demand for this big city is high and not visible. The real estate market as a whole seems to be surpassing expectations.