In a recent article in the Austin American Statesman; the Austin area saw a nice bump in jobs this past June adding 8,000 new jobs (about the size of a small city) which is really good news for us holders of residential rentals.
The overall unemployment rate was stated to be 4.4% which in itself an outstanding figure. How many areas can boast that number? According to the article, the reason for the glowing number is that a lot of folks are reentering the job market and many are coming from out of town to take jobs.
Reportedly the area lost 130,000 jobs because of the pandemic but has now recovered 90% of those lost jobs, which is just great news. Prior to COVID-19 the Austin area boasted an unemployment rate routinely below 3% so we do have a way to go to get back to even but I predict that won’t take too much more time.
And what about our rental market? Well, for one rental rates have never been much higher than they are now. With interest rates still at near record lows it can still make good sense to buy a residential rental even as we continue to see property prices increase.
None of the economists that I follow call the rising prices in our area housing a bubble. So, if the housing price increases that we have been experiencing is not a bubble, then what we have here is an “opportunity” to make a sound investment in residential rental real estate.
I’m glad I did – how about you?
Mike Ebert
Karen Ebert
Marc Witmer
Mike Gonzales
Shelly Longoria