Just one week ago Austin was in the grip of the worst winter storm in 100 years! We are still digging out of the mess, mostly from broken pipes due to freezing. Despite the recent disaster, the news of Austin’s growth marches on.
According to a recent article in the Austin American Statesman California transplant Elon Musk is predicting that Austin will be a modern-day “boomtown” for the United States. In the article he stated that Austin can be the biggest boomtown in America has experience in the last 50 years.
Mr. Musk invested over $1B in a new Tesla plant in southeast Austin in July. According to the article. the plant is to manufacture the new Cybertruck, a sedan, and other vehicles.
In the article Musk used words that I have used over and over “…Austin is becoming a mini California…”. I should know as I moved from San Jose to Austin in 1981 to take advantage of the slower pace, reduced traffic, and cleaner air, lower taxes and affordability. Well now I have to settle for cleaner air, except for the dreaded “Cedar Fever” season. Of course, another reason may be that Musk, who is now the richest man on the planet, will save millions in not having to pay income tax here. California has the highest income tax rate in the nation. Well duh!
An interesting part of the article was Mr. Musk’s statement to transplanted Californians to the Lone Star State was not to create the issues here that caused them to leave “there”. I too have been saying that for years.
Additionally, Pflugerville is the place that Mr. Musk has chosen for his “Boring Company”. Presently he is renovating space there to accommodate this operation that, as I recall, proposes to drill (bore) tunnels for the rapid movement of vehicles underground.
Okay, interesting, but what has this to do with property management and residential rentals? Well, if Austin is becoming a mini California, and I believe that it is, and if California real estate is out the roof, which it is, then doesn’t it make sense to own a well placed home rental to your investments. How would you like to have purchased 2 or 3 rental houses 20 years ago in Silicon Valley? Out of reach today, but that very opportunity exists today right here in the Austin area. Just ask Mr. Musk!