According to an article in the Austin Business Journal the cost of home ownership in Austin is causing many would be homeowners to look elsewhere; specifically to the “burbs”. The article quoted Redfin, a Seattle based real estate brokerage and technology firm who studies such trends. The Redfin study stated that in 2011 typical sale was 13.2 miles from the city but in 2015 it was 14.8 miles. The report also stated this increase of more than 12% was the second highest of the 31 cities in the study. Also stated was the cost of living in the urban core was a whopping $318 per square foot while the cost in the burbs was only $128 a square foot.
What this means for us investors in Austin area real estate is that the rent home you purchased 5 years ago was probably closer in than those being purchased today. And that same rental being more desirable because of its proximate location to the urban core is commanding a good rent. It would follow that buying a rental now with rents increasing and interest rates still favorable is a good investment.
Rick Ebert / Austin, Texas / 30 March 16