According to an article in US News and World Report this week Austin, Texas is the number one spot to live and to buy a home. Just an FYI last year Austin was ranked number two on the list. The survey examined the top three ranking metro areas to come up with Austin as being number one the last. Austin beat out Denver, Colorado and my home town of San Jose, California. With San Jose being such an expensive place to buy a house I’m really surprised that it made the cut. A part of the qualifying process was linking job opportunities and finding a home that that is affordable.
Well Austin and the surrounding cities are indeed affordable by nationwide comparisons, but the value of housing continues to increase yearly and is becoming more unaffordable for many in our area. This is based on the fact that Austin home buyers and home renters pay only 27 percent of their income on housing. Household incomes are not rising fast enough to match the rising home prices according to the Austin Board of REALTORS.
This information tells me that Austin and the surrounding cities continue to be a great place to own residential rent properties, why:
- Austin area property values continue to increase yearly
- Job growth continues to be strong in our local area
- Nationwide there is a tendency for people to rent housing vs. buying a house
- Millennials prefer to rent housing vs. buying a house, and there are plenty of them here
- As home values continue to increase rental houses in our area build up tax-free equity
All of this adds up that it is a great time to own Austin area residential real estate.
Rick Ebert / Austin, Texas / 2.9.17