per NicGerli Twitter: Austin, TX is now the 7th most affordable metro area in terms of Rent / Income Ratio. Amazing how far it has come. (more affordable than St. Louis, Akron, and Milwaukee for locals)
per NicGerli Twitter: Austin, TX is now the 7th most affordable metro area in terms of Rent / Income Ratio. Amazing how far it has come. (more affordable than St. Louis, Akron, and Milwaukee for locals)
2) How is this happening? Two reasons. The first is that rents in Austin have dropped significantly over the last several years. The second is that incomes in Austin are going up. With the median household income increasing from $79k prior to pandemic to $101k today.
3) I moved to Austin in August 2020 right when the bubble got going, and I saw how crazy it got on the ground. I left in late 2021 just as the bubble started popping. Since then, it has become significantly more affordable to both buy and rent.
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4) The biggest thing I remember from being there in 2020-21 was how many tech people from California were buying up investment properties, or renting multiple apartment units (one in
California, one in Austin).
5) The level of demand during that period was never really "fundamental". It was transient. Now much of that demand has gone away, back to California, or the next "it" city. Leaving Austin facing a stiff housing correction on both rents and home prices. (ultimately great news for locals)
6) The other thing I remember about Austin was how much home and aparmtent construction there was. Every multifamily developer in the U.S., and many outside the U.S., were obsessed with developing in Austin. The result was a huge surge in construction, which is still delivering new units onto the market today in a lower demand environment.
7) In fact, the building permit levels in Austin are still crazy. 32,000 permits were pulled the last 12 months, which is down from the pandemic peak, but is still above pre-pandemic levels. Meaning plenty of new homes and apartments are still in the pipeline.
8) Homebuyers and investors interested in the Austin market should expect another 6-12 months of rent and home price declines. We here at Reventure App think values will drop another 8% over the next 12 months. But at some point in 2026, this market will become a buy. It's fundamentals are lining up nicely, both in terms of Rent and Home Value to income.
9) Access data on Austin's housing market on Reventure App. Access our Rent / Income Ratio to the ZIP code under a premium account as well as data on Building Permits at the state, metro, and county levels. These data points are especially important for investors in determining the best areas to buy in the long term, and spotting inflection points. http://reventure.app
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