The Austin metro area’s population has been growing throughout the recession and is about 1.87 million today. That number is projected to rise to 2.3 million by 2020. This projection leads to the conclusion that there is going to be a substantial need for increased housing projects for the future, as well as finding places to live for the projected 158 people that move to Austin, Texas every day!
Here are some of the Highlights from this years conference which drew hundreds of Realtors, Builders, and Economists courtesy of Austin Business Journal.
• From 2006 through 2013, the area has added 343,832 residents, but apartment construction and single family building permits haven’t come close to reaching the need, though the situation is improving.
• From November 2012 to November 2013, 22,500 new jobs were added to the market and as of November 2013 the unemployment rate was 5.6 percent.
• In 1981 when interest rates were 18 percent, nearly 600,000 homes were built across the country. Yet in 2013 with interest rates at 5 percent or less, about the same number of homes were built nationally. The obvious conclusion is that there is still plenty of room for the housing market to expand.
• Home prices have risen dramatically in Austin with the average price of about $280,000. There’s been a dramatic drop in supply and days on the market for listed homes.
• Despite all the growth downtown, most of the housing growth has been in suburban markets, particularly Leander, Cedar Park, Round Rock and Georgetown. In Leander alone, about 15,000 single family building permits are in the pipeline.
• 17,736 apartments are under construction in the Austin market with nearly 4,500 of those in the Central Business District and Central Austin. Occupany across the market is averaging 95.8 percent and rents have steadily been on the rise.
• New home prices are likely to increase and already have in certain preferred locations. The cost of land and materials is driving the increase.
For more information on this report visit here. If you are interested to here more on the Austin Real Estate market or are looking to buy or sell a home in the Austin area contact The Heyl Group at Keller Williams today or visit our website here for Austin’s easiest home search!