Our local paper, the Austin American Statesman, recently reported on a study by Texas REALTORS as to why so many folks are moving to the Lone Star state. The 3 top reasons are:
- Cost of Living: living here is cheaper than most other places, especially California. The report stated that a family of four living in Los Angeles can save over 38% on their living expenses by relocating to Travis County. That folks is a lot of savings!
- Jobs: a lot of companies are expanding their operations to Texas, and even relocating their head offices here, and this is especially true in the Austin area. These expansions and relocations in turn create jobs. The Austin area job market has held up well during the pandemic.
- The best of city life and country living can be found here: Texas has miles and miles of hiking and biking trails, lakes for fishing and water sports, a lengthy coast line for fine beaches and salt water fishing and boating, and lots of artsy places to visit, all within a short drive from metropolitan areas, and this is especially true for the Austin area.
So who is coming here and where do they come from you ask? The answer is (thinking of Alex Trebek here) Los Angeles-Long Beach-Anaheim, New York-Newark-New Jersey, and Chicago-Naperville-Elgin metro area. And California led the charge to Texas having lost the majority of transplants to Texas. As a former Californian I cannot say that I am surprised.
What does this all mean for us investors in local residential rentals. It means that we have had and should continue to have a steady flock of would be renters for our investment properties. These transplants have to live somewhere and we have that product: professionally managed rental property. And all along the way our rental properties should continue to increase in value, tax free if you play your cards right!