In the December issue of Impact, a local monthly area-wide newspaper, the publication cited several facts obtained from the Austin city auditor’s office.
Population: For starters the report cited that the city is expected to increase its population by 88,419 over the next five years. The report didn’t clarify if the increase was from folks coming here of from children being born here. Either way that amounts to 49 people a day on the average. This figure actually seems low to me as Austin has seen in the last e years an average of 100 people a day relocating and other sources indicate that this trend isn’t slowing. Time will tell. The number of Austin households is expected to grow from 356,998 from 2015 to 395,686 by 2020 which is just a tad over 10%. Not surprising, the number of families is expected to expand to 201,371 from 183,564. That figure is also a bit of a 10% increase.
Income: The average Austinite earns $52,460 a year or $4,371 a month. This figure is just about on target for the average ALPS renter (actually a bit lower).
Housing Costs: The report stated that renters spend 48% less on housing costs than homeowners with renters reportedly spending $1,240 monthly for rent and homeowners spending $2,390 for a mortgage payment. Frankly, I don’t buy those figures. A small one bedroom apartment in a decent area will run $1,100 a month here, and it goes up from there; way up! I also base my thinking on our average rent in our managed properties are over $1,500 a month. Also taking into consideration that the “average” Austinite who earns $4,371 month would typically qualify for a rent of $1,457 – so go figure? The report also stated that 57% of all households rent vs. 43% who are homeowners.
The Californians are Coming! Well no surprise there. In a recent article in the Austin American Statesman a piece stated that 8 Californians a day migrated to our fair city between 2010 and 2014. And just what part of California is seeing the most of this outflow? Guess what it isn’t Silicon Valley but amazingly it is Los Angeles! And why are they leaving. Well for one thing they are living in California (my former home state) and what does California have and Austin doesn’t have? Affordable housing, a “go to” work spirit, and lower taxes. I do give California the edge on having a great climate! But the Austin area is “climate friendly” when compared to the rest of the nation.
What Does this Mean? It means that for us investors in Austin area residential real estate that we are in a good place, a very good place. Our rentals are located in a growing area that is seeing lots of folks coming here, lots of jobs coming here, and folks are making good money to pay the rent.
Rick Ebert/Austin, Texas / 15 Dec 16