The workforce and simultaneously potential new homebuyers, in the area is also becoming more diverse than in California. For years, Austin was over-indexed on founder and C-suite talent, but now, the city has a bigger market of VP and junior talent with VC-backed experience, says Chris Shonk, co-founder and managing director of ATX Ventures.
From May 2020 to April 2021, Austin gained tech workers at a higher rate than any other US metro by far, according to LinkedIn data. Preston James, founder of the nonprofit DivInc, which matches underrepresented entrepreneurs with resources, describes the workforce in Austin has an “insane talent pool”, and notes that several new emerging funds exclusively focused on Black, Latinx and women founders, including BEAM, The Fund, New Type Ventures, Agave Fund, Silicon Hills Capital and True Wealth are forming.
With all of this growth in the economy, the prime living conditions, and increasingly vibrant and diverse communities, the real estate market is expected to continue to grow even more. With the influx of financial opportunities, the relocation of major companies, and the job growth, nearly 185 people are moving to Austin per day. There is a massive need for new housing.
Many new multifamily and multi-use complexes are being built in the city, as well as single-family residences. According to a Redfin report, Austin is the leading metro building new single-family homes in the US. Construction is at an all-time high, as well as the need for housing. If you’re considering investing in your own, or rental property in Austin right now, now is a great time.
When considering what to charge, consider how much the average tech employee in Austin makes, as that may be your main target market. According to Hired data, tech workers in Austin earn an average annual salary of $144,378. The salaries of candidates in this role range from a low of $60,000 to a high of $220,000, with a median salary of $150,000.
Mortgage-wise, if a candidate who made this much and had an average credit score, their purchase budget could be around $560,000. If they opted for a 30-year mortgage, with a current 3.81% interest rate, they could utilize a $60,000 down payment and roughly a $1,379 monthly payment.
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