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Oct 15

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Austin #2 in 2016 Real Estate Outlook

austin postcard zoomAustin is ranked second nationally for overall real estate market outlook for 2016 according to “Emerging Trends in Real Estate 2016” a recent report by the Urban Land Institute and PwC LLP.

The 2016 outlook for all property types in Austin is well above average according to the report with particular favorability shown toward single-family and retail.

The report notes that domestic and global investors are looking more at secondary markets such as Austin when considering locations to invest capital.  Austin also ranks in the top ten markets for entrepreneurship in 2015 according to the Kauffman Foundation.

Austin is ranked first for new development across all 75 markets surveyed, second for homebuilding and fourth for investment properties.

Some of the reasons for this high ranking include:

  • Austin has the highest % of millennials (those between ages of 16 and 35) with 32% surpassing Los Angeles and Madison, Wisconsin.
  • The cost of doing business in Austin is 102% of the national average, far less than cities such as New York which is 160% and San Jose which is 129%.
  • Prospects for jobs and homes continues to be a key for identifying top markets and both remain strong in Austin.
  • Co-working office space is an emerging niche market in office lease space and Austin is one of the cities that seems to be embracing this new approach.
  • Austin setting a 140 gallon per capita daily water goal and revising water conservation code to address long term drought conditions.
  • Austin’s use of a high frequency bus network.
  • Low cost of living and strong growth potential in the housing market.
  • Austin is a market with hospitals, universities, trade ports, and strong infrastructure – which is important to investors.
  • Austin properties have good tenant mix, are experiencing good growth, and rents continue to move upward.

Click here to download the pdf report version.

Permanent link to this article: http://atxre.com/austin-2-in-2016-real-estate-outlook/

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