According to local economist Mark Sprague, approximately 40 families (158 people) are moving to Austin every day. Why? More importantly why should you care? I know people say, “All this does is make my commute to town longer and longer.” But let’s not be short sighted. If you own real estate in our area, the influx of people or lack thereof matters to your bottom line. The faster a town grows, the greater the opportunity for appreciation in its real estate, and that is especially true in an economy that has made it very difficult for home builders to keep up with long term demand for additional lots to be prepared for development. The fact that builders have not been able to develop new lots at a rate that will keep up with long term demand is putting pressure on the existing new home supply. That, combined with the very high occupancy (96%) of existing rental units, climbing rental rates and mortgage interest rates near 4% means we should see rising resale prices in the near future.
Why are people moving here? We all have our reasons for liking it here but below are a few from an economic perspective:
- Relatively moderate climate (we can pretty much do business year round with no weather-related interruptions)
- Centrally located to major population centers of Texas (Austin is a good business hub to reach out to the major cities of Texas)
- Several growth industries present (Dell, Samsung, HP, etc.)
- Several “recession-proof” industries such as state government, higher education and medical facilities
- Top vacation destination venues close by (gulf coast, theme parks, professional sports teams, highland lakes, hunting and fishing spots)
So the next time you find yourself complaining about sitting in traffic on I-35, remember that the delay may actually be evidence that your bottom line is growing.
Help me with my list….what is your favorite thing about living in the Austin area? Click HERE to go to our Facebook page and give us your thoughts. Everyone who responds is eligible for our Starbucks gift card drawing that will take place next Friday, November 11.
Dan/Oct. 3, 2011