The Austin housing market continues to grow at a dramatic rate. Since the subprime mortgage crisis of the late 2000s, home price peak values in Austin have increased 44 percent. Along with other Texas urban areas including Houston metro, DFW, and San Antonio, Austin is leading the nation in the recovering market trend.
The truth in the numbers
In February, the Austin Board of Realtors (ABoR) released a report detailing just how rapid the city’s housing market is growing. Single-family home sales have increased by nearly 3 percent from 2015 with a grand total of 1,783 homes sold. Along with rising sales comes higher prices; the median single-family home price reached $269,900 while the average price for single-family homes rose to $333,011. That’s an 8 percent increase since February 2015.
New properties on the market have increased 11.1 percent to 2,792 listings in February 2016 with active listings up 10 percent at 4,871 listings. And people are buying them: pending sales are up 12.3 percent for a total of 2,346 sales. This is great news for real estate agents and sellers… but there are other implications.
Growing pains
In a press release, ABoR president Aaron Farmer addressed the issues with such rapid growth in our city. “Austin-area residents are relocating farther and farther outside of Austin due to affordability issues and yet are spending more and more time stuck in traffic each year. With the rate our region’s population is growing, this is simply not suitable.”
Without a doubt Farmer is right. All it takes is an afternoon sitting in stand still traffic on I-35 to see that the population boom has created an infrastructure crisis. Traffic congestion isn’t just annoying and time consuming, it also puts stress on the local environment and air quality. When it comes down to it, you’re paying a lot to live in Austin whether it’s in rent for a place closer to your job or the gas you need to commute.
The bright side
But for those who are already invested in the Austin residential real estate market and plan to rent out their property, the future is looking bright. According to real estate investment management firm HomeUnion, Austin is 8th in the nation when it comes to the strongest investment home rental growth. With the lack of affordable housing options, renting is a more viable option for most. Demand for quality rental properties is up.
If you have investment property but aren’t taking advantage of renting it out, Ironrock Properties can help. With comprehensive marketing and tenant screen services, we do the hard work for you and ensure your property is leased fast with quality tenants. We make owning rental properties easy and streamlined. Call us today at (512) 807-7000 and one of our leasing professionals can help you get started.