Austin is Hot

Austin is Hot

Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes

http://www.bizjournals.com/austin/news/2012/02/23/forecast-austin-job-growth-revs-up.html?ana=lnk

Some highlights:

19,000 new jobs are expected this year after 13,000 last year.

Unemployment rate could drop below 5% in a year.

Office space is at an 88 percent occupancy rate and rising with very little new coming on line this year.

Retail is at 94 percent occupancy. Only 400K square feet coming on line this year. That's about the size of one large Ikea.

Last year, about 39,000 people moved to Austin. Expectations for this year, 42,000, and 48,000 more in 2013.

The 2010 census showed population of 790K, so the current growth is over 5% per year. How many other top 25 cities are even close to that?

What would be your investing approach in Austin?

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Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
14y

Apple is creating 3600 new jobs here now:

Press Release

Austin is the place to be!

See this reply in the discussion

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  • Alkmaar, None · Member since 2012 · 1 post · 0 votes
    14y

    Austin is definently HOT!

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y
    Originally posted by Danny Day:
    Just wondering what you guys think about all this growth. Will this spill over to Round Rock, Kyle, Buda, etc?

    These areas are definitely growing too and I have looked at several projects in Kyle and Buda. Round Rock and Cedar Park out towards Georgetown is growing a ton.

    The City of Austin is trying to encourage growth along the new toll corridor east of town, but there isn't much in infrastructure there. The ULI meeting last week was about PIDs and trying to get some of the infrastructure out there to help with growth.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    Quote from 2005?

    "We thought this was the right time for us to buy," she said. "The Austin market's like, now or never. If we don't get in now, we're never going to be able to afford it again."

    No, it's from a few days ago.

    http://www.statesman.com/business/austin-housing-starts-up-20-in-first-quarter-2279642.html

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Seems about right Jon. I can't believe we're looking at $315 for the exit on 9th Street. They're probably right.

  • Flipper · Elmhurst, IL · Member since 2011 · 96 posts · 23 votes
    14y

    I'm looking to buy 2-4 units in Austin. I have seen listings at 200k for duplex, which sounds high to me. Anyone can recommend an agent specialized 2-4 units?

    Thanks

    Casey

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y
    Originally posted by Rich Weese:
    How about DALLAS!!!!

    Rich, I was wrong about Dallas' growth, it's back up over 2% to number one in the nation.

    http://bizbeatblog.dallasnews.com/archives/2012/04/d-fw-first-in-population-growt.html

    154,774 new residents through mid last year over the prior 12 months.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Want to get a sense for how hot Austin is? Check out this chart about Austin as compared with other major MSAs. Nuts.

    Austin is REALLY Hot

  • Developer · Dallas, TX · Member since 2010 · 2 posts · 0 votes
    14y

    What do you think about ground up student housing "west campus site" 1 block off? 1.25 acres and is a busted deal and gone back to the pension fund (lender). Zoned for 141 market rate units to be developed or 350 student beds. Priced at $3.0 million. We offered $2.3 with 10 day look and 5 day close with 8 contingencies but they want us closer to the $3.0 M number. Pension fund has over $5 M in the dirt. May loose it if we don't come up on price. Austin is so crazy right now. Looking at some stuff just north of campus as well but pricing is way out there. We are building medical in other parts of the market which are taking off like hot cakes but not into the residential market so much in Austin.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Sounds interesting Jonathan. I'm interested if you get it tied up. I have a former coaching student that has the top custom home building company as voted by ABJ last year that would be interested too.

    If you're in Austin soon PM me and let's grab lunch.

  • Developer · Dallas, TX · Member since 2010 · 2 posts · 0 votes
    14y

    I will let you know how it turns out this week. Will be in Austin in next week or two and see if we can get together.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Please do Jonathan...Looking forward to it.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y
  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    Housing starts up 20% in the first quarter.

    http://www.statesman.com/business/austin-housing-starts-up-20-in-first-quarter-2279642.html

    Austin also added 25,800 jobs in the first quarter. This is a really big number when you consider the city's population is 800k and the MSA is 1.8mm.

    It's not that cities haven't seen this kind of growth before, it's that Austin seems to be growing so much faster than any other top 25 US city in an anemic recovery.

  • FL · Member since 2009 · 2k+ posts · 357 votes
    14y
  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Hardly a week goes by when I don't hear some story about an idiot city official deriding the evil investors making housing less affordable on the east side of town. That has to be a good sign!

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y
    Originally posted by Bryan Hancock:
    Hardly a week goes by when I don't hear some story about an idiot city official deriding the evil investors making housing less affordable on the east side of town. That has to be a good sign!

    Hey, it's the long time owners jacking up the prices on their shacks ; )
    I offered $105K for a single wide mobile on a 45' lot last week, and the long time owner wouldn't even counter. He said he wanted to sell and asked me to make an offer.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    That part won't make the news though Jon. I'm sure that seller is pretty heart broken about those evil investors!

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    2 years ago he probably would have jumped at $55K.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    You should counter with $90k ;-)

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Update: Our 9th Street project is probably going on the market next week for $329k...a full $14k higher than the $15k higher price we were originally targeting for a total of $39k rise in ask price during the construction. Can you say Austin is hot?

    Many of the parties to this thread are also participating in this market ;-)

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y
  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    13y

    Most of our new offers are competing with multiples and stuff is flying off the shelf in our areas of interest. You have to be an expert in the market to find the gems because of informational inefficiencies. We're offering on another property today that we'll probably get because we know the duplex requirements and it is marketed improperly. Nothing like agents that don't know what they have screwing their sellers ;-)

  • Jason GrotePro Member
    Developer · Austin, TX · Member since 2011 · 286 posts · 88 votes
    13y

    A realtor that keeps up with the market data told me that several areas of Austin have less than a month's inventory! Going to be an interesting selling season coming up...

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    That's crazy Jason. Did they say which neighborhoods?

  • Jason GrotePro Member
    Developer · Austin, TX · Member since 2011 · 286 posts · 88 votes
    13y

    Jon Klaus Specifically she said South Austin and I think she meant 78745... and yes it is crazy!

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