Q2 2022 ended with Austin being a top 5 market nationwide in terms of strength and low inventory but definitely seeing tempering due to equities markets pulling back, interest rates rising from 3.5% to 5.5% and inflation. At The Morshed Group, starting in Q4 of last year, we were letting clients know 2022 would be the year things finally cooled.
By 2025, over 8 new development properties, many of which are investments over $1B, will be fully finished and functioning. The region will soon be home to not only new offices for tech giants but also hospitals, multifamily buildings, entertainment plazas, hotels, and more. All of these new businesses, and jobs, will make the real estate market boom in that area. If you’re looking for the latest hotspot to invest in, look to North Austin.
The current Austin real estate market is a builder’s one due to a construction boom. According to the Texas Real Estate Center at Texas A&M University analyzing data from the U.S. Census Bureau, the number of new homes that received permitting and are under construction so far this year is 11,165. This construction boom includes single-family homes as well as multifamily rental communities in Austin and its surrounding suburbs.
The Austin job market has received many well-deserved accolades recently, including the best-performing job market among the 50+ metro areas with at least one million residents in the Wall Street Journal. Austin ranked first for job growth and share of adults working or looking for work, third for change in the size of the workforce, fourth for change in average weekly wages, and 17th for unemployment rate. Additionally, personal finance content website WalletHub, named Austin No. 5 for the best cities to find jobs in 2022.
Meta is leasing up all the office space in Austin’s tallest tower… Not only are they planning to take over all 589,000 square feet of office space (across 33 floors), they’re looking to hire hundreds all while keeping their other downtown offices. This 66-story high rise is under construction and will be Austin’s tallest building.
As a follow-up to our article earlier this year on the Q2 stadium opening, the North Burnet/Gateway area has seen continued dense housing, commercial, retail, and office developments take shape. Additionally, some affordable housing and hotel development are in the works. The completed Q2 Stadium has proven to be immediately impactful in this area’s growth.
Texas attracts a remarkable number of facilities for many reasons, including significant cost savings for many companies. Between January 1st and June 27th, 53 Headquarters left California and 23 of those came to Texas. Out of those 23 companies that announced relocations so far this year, 11 choose Austin and its surrounding areas for their headquarters, the most out of any city in Texas.
Austin’s relative affordability, high quality of life and Texas’ low tax rate have made the city an attractive destination - and the fastest growing city in the country. This expansion and growth pattern has made Austin one of the top ranked cities for international investors in 2021, which marks a significant shift in investor
Ranked the #1 place to live by US News, find out how quality of life and job growth are just a few of the factors driving demand in Austin real estate. Read more on Roofstock.
Great read on the multitude of reasons why Austin’s in-migration numbers are massively up as well as how Project Connect is and will impact that further! As younger generations continue to flock to Austin, we agree that it would be wise for real estate investors to take advantage of this population increase and strategically