Austin, TX Economic Outlook: No Longer a Secret

March 12, 2013 at 3:41 pm 7 comments

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Austin as we know it today

Last month I had the honor of listening to David Tandy, CEO of Gracy Title, talk about the Austin economy, the Austin real estate market outlook and where we’re going. Hold on … the Austin we know today will not be the Austin of 2023. Some of the numbers I will reference in this post include articles, posts & research from the Austin Business Journal, 2013-2014 Angelos Angelou Economic Forecast, and the Austin Chamber.

F1

My biggest takeaway was that the Austin growth, momentum, economic outlook numbers are quite possibly understated. The main premise here is that most of the economic forecast, growth projection numbers were researched and posted PRIOR to the F1 Circuit of Americas airing in November (which had an estimated $483M economic impact to Austin) where 600 million people worldwide heard about Austin, TX and what an amazing city we are. Austin is no longer a secret.

The Numbers

  • At a 2.9% growth rate, we are the fastest growing city in the US.
  • In 2013, there will be 60-70,000 people moving to Austin. This growth will continue.
  • For every 2.5 people, we need one housing unit (home or apartment) which equals a 28,000 demand this year. This demand will continue.
  • In 2012, we created about 12,000 housing units, demand was 28,000; we currently have a 30,000 housing deficit. This deficit will continue.
  • low supply, high demand = sellers’ market

California

Californians are moving to Texas, a lot of them. Recent headlines involve Governor Perry’s poaching tour of CA (real classy move, Gov). California’s tall state income tax, increasing sales taxes and suffering schools are fueling the 3rd coast migration. Besides #sxsw, watch for more CA license plates in TX.

Real estate tips for our new residents

First, welcome (ignore the don’t-move-here t-shirts). Second, we are still much cheaper than CA. And a few other things you should know:

  • no income tax in TX, we make up for it in property taxes (they will be much higher than you experienced in CA)
  • prices are going up
  • Multiple offers are commonplace right now and expected to continue
  • Find out about homes before they hit the market (we call this the silent market or pocket listings or, simply, coming soon). How to do this? A good Realtor has a solid network of Realtors and they exchange information all the time. You may want to consider aligning yourself with an office that has the largest market share in the area. (Shameless plug: Keller Williams Realty began in Austin, TX in 1983 … they dominate the Austin market, most listings, most sold, most luxury market, most agents.)

Summary

The growth in Austin over the next 3-10 years is going to be huge, dare I say explosive. Jobs are fine … best job growth in the country. We will continue to feel it with housing supply, multiple offers, increasing prices, affordability and traffic.

Buyers have to be very strategic and on-the-ball with making an offer. The demand & low supply is pushing prices up. There is a ton of CASH out there right now. Gracy Title says 30% of their closings right now are all cash. This translates to disadvantage for contingent and low down-payment offers.

Connect with your favorite savvy and qualified Realtor to customize your real estate strategy and successfully navigate Austin as we know it today.

© Julie Nelson and The Nelson Project at Keller Williams Realty, 2013-2015. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content. Julie Nelson is a licensed Realtor with Keller Williams Realty in Austin, TX.  This article and other blog postings should not be construed as legal or professional advice.  Contact your favorite Austin real estate professionals in person for actual advice.  Julie can be reached at www.thenelsonproject.com.  Searching for homes?  We think this is the coolest Austin home search tool available.

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Entry filed under: Austin, Data Central, Smart Real Estate, Smart Realtors. Tags: .

Affordability Factor in Austin Information About Brokerage Services

7 Comments Add your own

  • [...] Austin, TX Economic Outlook: No Longer a Secret. [...]

    Reply
  • 2. kay Angermann  |  March 12, 2013 at 11:26 pm

    Wow, that many people are moving to our great city…We love that we are being recognized as a top city! If you come, you must be nice..Austin is also know for its friendliness!

    Reply
  • […] “Austin, TX Economic Outlook: No Longer a Secret” Last month I had the honor of listening to David Tandy, CEO of Gracy Title, talk about the Austin economy, the Austin real estate market outlook and where we’re going. Hold on … the Austin we know today will not be the Austin of 2023. [The Nelson Project Real Estate Blog] […]

    Reply
  • 4. cbroughtonkw  |  June 8, 2013 at 1:46 pm

    Thanks for all the GREAT Info Julie. You’re my Go To Agent in Austin for sure!

    Reply
    • 5. nelsonproject  |  June 10, 2013 at 11:40 am

      Thanks, Christopher! I always appreciate an intelligent read on my articles!

      Reply
  • 6. austintexashome  |  September 5, 2013 at 2:53 am

    Very good post. Nice to read.
    Austin Texas Homes

    Reply
  • 7. George Stanley  |  September 27, 2014 at 12:11 pm

    It’s good to know that Austin’s economic growth continues. With the rise in population in Austin comes the decrease in California. I have to agree with you on Gov. Perry’s poaching tour of CA. With the increase in the number of people who would move to Austin, there’s no doubt for the high demand on housing projects.

    ________________
    Building Consultants
    Building Consultants & Management Adelaide

    Reply

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© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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