Reasons Why Austin Texas Is The Hottest Real Estate Market To Invest In

The US housing market is going bonkers right now. Property prices and valuations are literally shooting through the roof. Ever since the pandemic, housing prices in different parts of the United States have experienced a sizable boom. 

While almost every state and region is experiencing growth, the sunbelt city of Austin Texas has left practically every other city behind. According to Yahoo Finance’s official real estate survey of 2021, Austin is the undisputed king as far as real estate is concerned!

This comes as no surprise as a real estate portal, Zillow had in fact at the start of 2021 (way back in January) predicted that Austin would emerge as a top real estate destination for investors. With great neighborhoods, an active lifestyle, and amazing median house prices, Austin Texas has emerged as the destination you need to park your investment in. 

If you are an individual, family, or investor looking for high-growth opportunities in the real estate market, I am certain you are interested in finding out more about Austin, Texas. 

List of 7 Reasons why Austin Texas is the Hottest Real Estate Market to Invest in

1. The Post-COVID Migration to Austin

There is no denying the fact that COVID-19 had a drastic impact on the economy. It resulted in changes to our way of living and working. Thousands of millennials that were asked to go on remote work selected Austin as the place to go to. 

Zillow in its survey stated that Austin saw a migration from the cities of LA, San Jose, San Fran, and even the coast. 

Everything from the shift of tech companies to attractive median prices of homes played a role in influencing the decision of techies that migrated to the ‘City of the Violet Crown’ (In addition to Athens, Greece; Austin shares this moniker as well). 

If you are interested in investing in Austin’s property market, check out Teifke Real Estate.

1. The Surge in Tech Companies and Opportunities in Austin 

The State of Texas had an ace up its sleeve in terms of attracting large tech giants. Low taxes, ease of paperwork, and the abundance of great sites to set up offices resulted in everyone from Apple to PayPal, and Amazon moving base from Silicon Valley. 

This helped Austin earn the nickname ‘Silicon Hills’. The boom experienced thanks to the migration of tech giants has helped pull in a large cosmopolitan audience from every part of the world. 

You have professionals from India, China, Japan, and Australia moving to Austin, Texas. Again, great opportunities coupled with a lower cost of living acted as a real magnet for millennials. 

1. The Booming Job Market is driven by Low Taxes and Opportunities

An article published in the Wall Street Journal on 15th December 2021, stated that Austin has been successful in drawing professionals from NYC. Two things stand out in the piece. 

The first is how individuals that were spoken to stated that the cost of living is roughly 40% lower than the Big Apple. Secondly, they also spoke at length about how there is no State Personal Income Tax. 

For someone that is working in the tech industry, this is music to their ears! The Austin Chamber of Commerce in its annual report stated that it is the 2nd best job market in the entire United States. 

1. Investors are Flocking to the Sunbelt City thanks to High Y-o-Y Growth 

Let’s start with some facts and figures. Zillow states that property prices in Austin have risen by nearly 40% over the last year. However, when you look at the Median Home Prices, they are still very much in an attractive range of roughly $470,000. 

This means that they are significantly lower than NYC, San Fran, and Washington. The surprising figure that stands out is that on average, a home is only available on the Austin Market for 22 days! 

Investors are liquidating their investments all over the US and moving their entire funds to Austin. If you invest in Austin’s real estate today, you are going to set yourself up for life. 

1. Great Quality of Life and Low Standard of Living 

Everyone wants to enjoy dining out, shopping and maintaining decent lifestyle affordability. There are not too many top-tier cities in the US that can guarantee the same. 

Austin takes the cake as far as nightlife, educational institutions, parks, natural surroundings, and other markers are concerned. The city is known for its historicity, music festivals, and rocking sports background. 

You also have the famous Ascension Seton Medical Center along with St. David’s Medical Center. Two of the best hospitals in the United States in Austin. Another significant reason is the diverse cosmopolitan crowd that lends vibrancy to society. 

1. Excellent and Eclectic Neighborhoods in Austin, Texas 

If you want to migrate to Austin, the first thing that you are going to look for is where should I start? Fair enough. To be honest, there is no dearth of great locations and neighborhoods in Austin that you can choose from. Our personal picks are four in number. 

Firstly, if you want to wake up to the sights of the lake, then Tarrytown is the neighborhood for you. Secondly, if you want to rent out your property and generate rental income, then you should be looking at the North University Area. 

Thirdly, if condos, lofts, and apartments are your thing then Mueller has a lot of options you can choose from. Lastly, for working professionals, Cherrywood is a neighborhood you should be exploring. 

1. Low House Prices and Availability of Homes in Austin 

Even though Austin is currently the hottest real estate market in the US, owning a home is still a realistic possibility. Two things should be credited for this. 

While property prices have increased on a year-on-year basis, the median process for the homes is still on the lower side. Add to this better economic growth and zero personal income tax and you are looking at a realistic chance of affording your mortgage. 

Secondly, there are still homes in Austin that you can buy. If you are lucky and start immediately, you will get a fantastic deal. Make sure to explore your options and do thorough research. 

The Final Takeaway

In the words of Austin native and Oscar winner, Matthew McConaughey, Austin used to be a college city, government town, and music destination. Now it is a town that has bankers, tech professionals, and international travelers. 

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