Obviously if you're going to be in the game of real estate investing, a strong tenant base is a primary concern. The latest news on population growth in Austin suggests that in that department, the bases aren't just covered, they're overflowing.

City Demographer Ryan Robinson reports that from April 1, 2010 to July 1, 2011 nearly 70,000 new residents moved here, making Austin one the fastest growing metropolitan regions in the nation. Forbes agrees, having just tapped Austin for the number one spot on its "America's Fastest-Growing Cities" list for the second year in a row.

People are moving here from all the other major urban centers in Texas, with even more coming from Florida, New York, Ohio, Michigan, Colorado, California, and Washington. They're drawn to Austin for many reasons, but economic opportunity and affordable living top the list. In fact, the whole state has seen a significant population increase over the last decade, with an estimated 4.3 million people moving to Texas.

Hot spots in Austin seeing a proliferation of new households include downtown, east Austin, west campus and Mueller. In addition to the traditional influx of college-age residents enrolled at the University of Texas, we're getting more and more Baby Boomers and seniors. These folks are looking to downsize while still living large, enjoying the city's eclectic and funky music and cultural scenes.

In an article for "Austin REALTOR" by Autumn Rhea Carpenter, Adriana Cruz, Vice President of Global Corporate Recruitment for the Austin Chamber of Commerce discussed what amounts to the city's "ace in the hole" to ensure sustained growth in coming years -- the impact of the new Formula 1 track on existing demographics.

"Formula One is catapulting Austin onto the global stage, which is great for our regional economy," said Cruz. "This is one of the most-watched sporting events in the world, with over 30 million people expected to watch the U.S. Grand Prix in Austin in over 180 countries. This is the equivalent of $200 million in advertising."

With these positive factors expected to only strengthen over the next few years, a growing demand for housing is assured. Often when people relocate for whatever reason, they like to start out in a leased property while they get the feel of the area. These kinds of leases in well-placed, high-quality properties easily translate to sales over time.

Right now, the inventory of available properties is tight, which only makes the demand higher. For the beginning investor, with the help of a realtor knowledgeable about Austin and its growth trends, there couldn't be a better time to put money in investment properties. If the desire is for cash flow, your tenant base is already strong and growing. For longer-term goals -- as much as five years out -- appreciation is all but ensured.

Working with first-time investors is one of my areas of specialization. If you're excited and intrigued by what's happening in the Austin housing market -- and you should be -- and want to discuss your options, don't hesitate to get in touch via email or phone. 

Below is a recap from the Austin Chamber of Commerce report on jobs.

Job Growth

  • Austin ranks number three in the nation in job growth with a 3.5% change over the last 12 months resulting in 28,200 new jobs. Public and all private sectors added jobs.
  • Texas had a combined public/private sector job growth rate of 2.6%. Four out of the top 10 cities for job growth were in Texas with Houston the number one growth market in the US
  • US showed an overall job growth rate of 1.4%

Number of Jobs

  • Austin has now added 44,200 jobs from it's peak employment on November 2008
  • Texas has added 248,800 jobs from its peak employment on November 2008
  • The US remains 4.3 million jobs short of peak employment set on November 2007 (60 months ago!)

Unemployment Rate

  • Austin has the second lowest rate of unemployment out of 50 largest metros at 5.3% vs 6.6% this time last year. (Houston by comparison dropped from 7.7% last year to 6.2% this year. Within the AUSTIN MSA, Travis and Hays counties have the lowest unemployment rate with 5.2%).
  • Texas's unemployment rate is 6.3% compared to 7.6% last October.
  • The US October unemployment rate is 7.5% vs 8.5% last year.

Employment by Industry

  • Austin's fastest growing segment over the last 12 months: Professional and Business Services - 10,700 jobs (or 9.1%)
  • Texas's fastest growing segments over the last 12 months: Both Construction and Natural Resources grew by 7.1%.
Posted by Monte Davis on
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I will begin investing this year with aggressive goals to transition out of my current job into full time investor status within the next 3 years (April 2016 is my deadline).
I recently moved to Austin from Houston and am interested in residential properties that provide both cash flow and appreciation potential. I would like to also focus on multi-units where possible (4-20 units starting out).
I would like to begin discussions with someone who understands the not only the market but also the investor side of the business including ROI, CAC return, financing both traditional, private and seller and marketing.
I look forward and appreciate any time and consideration you can give to my request.
Thanks

David Ashby

Posted by Michael David Ashby on Thursday, March 28th, 2013 at 8:56am

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