A recent article in CultureMap, a local publication, had an article about the difficult challenges that millennials face in buying a house in the Austin area. A survey of apartment renting millennials found that most would like to buy a house but can’t afford to do so right now. Most said that they need at least 3 years to prepare to save for their home. The survey showed that most thought that they needed about $23K to make the purchase come true. However the amount needed is a bit over $31K. With the respondents stating that they are saving about $194 a month towards the down payment they would have to save for over 10 years even if housing prices stay the same. Fat chance of that happening!
So what does that mean for us investors of Austin area residential real estate? Why it means that we are holding a product that is in demand, pays us a nice return on our invested dollar, and should continue to increase in price while a portion of society tries to catch up.
Rick Ebert / Austin, Texas / 27 April 16