Why is the Austin Real Estate Market Booming?

Austin has been a boom town for decades due to our robust job growth. As long as we can remember, Austin has been listed as one of the "Fastest Growing Cities in the US" (and is often listed as #1.) Our high quality of life, relatively low cost of living, educated job force, and "weirdness" all contribute to this. However, Post-COVID has seen an unprecedented boom. Why?

Continued Job Growth

Tesla, Apple, Google, Facebook, Indeed, & VRBO are all companies who have increased their presence in Austin dramatically in the recent past. These are also all highly recognizable companies. You probably haven't heard of QSAM Biosciences, Eleiko, Alpha Paw, Sentry Kiosk, Ametrine, 8VC, Truelytics, or Digital Realty Trust. These are only a few of the "other" major companies who have relocated their HQ to Austin very recently. https://www.bizjournals.com/austin/news/2021/02/08/these-headquarters-have-moved-to-austin-in-2021.html

Relative Affordability

Even though we're rapidly appreciating, Austin is still a relative bargain. It makes sense that we would be considerably cheaper than The Bay Area, Manhattan, or Seattle. The fact that we're considerably less expensive than Denver or Portland indicates that we have room to grow. More details are available here.

Historical Housing Shortage

Austin was already in a housing shortage before this recent boom. The broader market has consistently been in the <3 Months of Inventory range for 5+ years, which is considered a seller's market. We already needed to play catch-up prior to the boom, and the inventory problem has only worsened after the boom.

Lower Tax Burden

Austin has a comparatively high tax rate, but Texas has no state income tax. Many tech-heavy states (like California) have very high state income tax rates. When you compare the overall tax burden between Austin and these states, Austin wins by a decent margin.

Remote Workers

Due to COVID, many workers (and almost all tech workers) now work remotely, from home. Many tech companies have announced that this change will be indefinite and are allowing their employees to live anywhere in the US (or world) that they would like. These remote workers now place a high priority on physical space and are looking at less expensive markets where they can buy a larger home and still maintain a high quality of life. Austin tops many of their lists as an option. This demand is new and unexpected, and it was caused 100% by the changing dynamics caused by COVID.

Is Austin in a Bubble?

We don't think so. True bubbles are relatively rare in real estate markets. Beyond that, the buyers in Austin are largely owner-occupants with 20% or more down payment in their homes. These owners are unlikely to dump a property if there is a temporary flattening (or drop) in values. This boom is very different than 2007 (during which Austin fared incredibly well) and unlike any of the true bubble markets in Las Vegas, Phoenix, etc that did exist before the 2008 crash. More on this is available here.

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Tracey was excellent! She was always quick to respond and find answers for any questions that I had. I would recommend her to anyone in the Austin/ Lakeway area!

Tracey was great! She was very responsive, professional and thoughtful. She provided excellent guidance on multiple aspects of the process including pricing and negotiating. We will use Tracey again if we ever move and highly recommend her.

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I cannot recommend Tracey Guttes highly enough! She has a broad and deep understanding of the local real estate market. She used her relationship with other realtors and builders to share properties that were coming soon to market. She gave me honest and insightful critiques of each property we looked at – and we looked at a lot of houses! She led me through the process with kindness and patience, expertly answering every one of my questions. After over five months of searching she helped me find the perfect home for my family, and then negotiated a final sales price below asking price. I believe it would be impossible to find a better, more qualified agent!

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Working with Meaghan Marks was a great experience! As a first time home buyer, I was oblivious to the process and she helped every step of the way. I would definitely use her again!

Prior to listing my house I was carefully guided on preparing the house to show at its best. We received immediate calls on the listing and sold the house in 2 days. Closing was a breeze. The experience could not have been better.

April was great, she made herself on a Sunday for a viewing and anytime of the day when we had any questions. As first time homeowners, she really helped make the buying process easier than expected. We felt she really wanted to help us get the home we really wanted and we did! She made sure we did everything we needed to get done on our end.

We jumped into the home buying process faster than we expected when the interest rates started to climb and the housing market shifted. April quickly setup viewings and coordinated with us. In the negotiation for the new home, April contacted the seller’s agent and any inspector services needed along the way. She also coordinated with our lender. We closed just 4 weeks after we started looking, and with April the process was simple and efficient. We will absolutely go with April in the future, and we recommend her to anyone looking for an agent.

April was the best!!! When we first spoke I told her that I had a few houses I wanted to look at in the Austin area and she built out a schedule for the day for us to see them all. I then ended up falling in love with one of the homes which would end up being my first house! Being from NC the process to buy a home is very different and April walked me through the process in detail and was there to answer any questions that I had… which were a lot! I was very thankful to have April as my realtor and able to find me my first home which I’m in love with! If you’re looking and want to be taking care of you need to work with April!

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