Austin, Tx continues to be one of the strongest real estate markets in Texas. If you are looking to buy central Austin real estate, read up on these trends to better know what to expect.
Austin is Expensive
The National Low Income Housing Coalition recently released a report that shows that in order to afford a two-bedroom apartment in Austin people need to earn $23/hour. For an annual income that is $47,840. Given that the minimum wage in Texas is $7.25 many people in Austin can’t afford that. Especially considering the average rent for Travis County is $1,195.
It’s Projected to Get Even More Expensive
In May 2017, the Austin Board of Realtors released the statistic that the median price of a home in Austin is $490,000. Compared to 6 years ago, in May 2011 the median price of a home in Austin was about half that, with a $205,000 increase. This is clearly not in line with the inflation rate.
Apartment Buildings Are Going Up Left and Right
Four Austin neighborhoods made the top 50 U.S. list for most new apartments built since 2010. The neighborhoods that were listed were North Burnet(19th), downtown Austin(22nd), Zilker(44th) and University Campus(49th). All this construction exists to help keep up with the influx of people moving to the city. It is worth noting that most of these new complexes are not affordable living, meaning they offer rent at or above the average in Austin.
78704 is the Hottest ZIP Code Right Now
This area is south of Lady Bird Lake and includes the Zilker, Bouldin Creek, Barton Hills, South Congress, Travis Heights and South Lamar areas. According to the Austin Board of Realtors, 333 home sold between January and May this year in this ZIP code. The median price of a home in this area is $539,600 in 2017. The second-hottest market in Austin is 78723. This includes Mueller and Windsor Park.
New Homes Are Going Up Left and Right
According to statistics from the Austin Board of Realtors, the number of new homes being built between 2011 and 2016 has more than doubled. In 2011, only 167 new homes were built. Compare that to the 550 new homes that were built last year. Between January and May of 2017 255 homes have been built.
While the rate at which new central Austin real estate are being built has increased in Austin, it doesn’t match where the need is. Most of these new properties are luxury apartments or single-family homes. Much of where the need in for housing in Austin is for townhomes, duplexes, fourplexes and condos, ie. more affordable housing.
If you are looking to buy property in the Austin-area check out Weichert Realtors- Barton Harris.