Austin has had one of the most resilient job markets during the pandemic. It ranks third in the nation for fewest jobs lost since February 2020. A wave of relocations to Central Texas, which includes many tech companies, has grown during the pandemic, while giants such as Google Inc., Amazon.com Inc. and Tesla Inc. continue to grow here.
Austin saw 6,202 tech job openings in March, an increase of more than 1,400 from the month prior and the fourth-largest month-over-month jump in the CompTIA listing.
In the San Francisco Bay Area, though, the number of open tech positions actually shrank in March, bucking the national trend.
Tech jobs are moving from higher cost cities to lower cost cities/remote. The Bay Area will always be Silicon Valley but there is a distribution of wealth trending.
@Neil Narayan so resilient yet 17% of Austin FHA loans are in default. Yet everyone will keep drinking the kool-aid without looking at real fundamental issues.
@Stephen Stokes so are your planning to liquidate your investments in Austin and move to a more resilient city? If yes, please share which one so we can all benefit. If not, why not since you are so negative on Austin?
@Neil Narayan no sir I am not selling anything as I am a cash flow investor. I am also not out bidding $50k over asking either and ignoring the true underlying fundamentals of the market place that is being driven by printed money and artificially low interest rates.
I was merely pointing out a fact on the fundamentals of the market. Almost 1 in 5 homes in Austin area that are financed by a FHA loan being in default does not make for strong market fundamentals by any measure of historical assessment. We are also hovering around 6% unemployment as well last time I checked the data.
Real data is informative and useful to the experienced investor. Useless fluff is just that, fodder for the foolish.
@Neil Narayan greatly appreciate this thread along with others related to this area. Currently located in central CA, so close enough to San Jose and SF to know about pricey markets. Austin proper piques my interest as a long distance LTR investor. So any guidance from local agents or PMs are welcome. How about areas outside of Austin such as Georgetown? Are there any prospective areas to hone in on? Thanks!
Also Austin unemployment rate is lower than the national average.
Austin is in line with the current market conditions so there is no data confirmation to point to Austin being any more resilient than the rest of the USA or the world for that matter. In fact there are 101 metros that have lower default rates for FHA loans including but not limited to Panama City, Lancaster, Knoxville, Reno, etc.
There is a link at the bottom of the article to download the raw data on the largest 169 MSA's.
@Michael Encoy I have done 3 investment props in Georgetown in the last couple of months. It is a great are in my opinion (best historic downtown in Texas). They all rented out in a couple of days with multiple applicants. GT is less heated than RR and CP areas.
I live in Mueller neighborhood! Heat of Austin! I been listening to Austin stuff for quite long! This is usually from the ones who just live and talk about Austin market! They don't know about the rest of the world. I have 3 properties in Austin and then I also do in Nashville, Phoenix, Denver! And I live in most of my Properties so in these cities! I recommendation to these guys, respect to your tech bubble, but also use some awareness.
Bang on @Stephen Stokes
Michael! I live in Austin downtown. I manage 3 properties here. It's a frenzy in Austin! So is in all over USA. Inventory is less everywhere and lumber cost is crazy. As an investor, I am looking at other markets! But I have friends from CA who bought homes here in Round Rock and other suburbs by bidding around $70k to $100k more than the list price. They have their reasons because they are from Cali mostly and moved here with their companies and kids school and then the weekend frenzy. There are not many new constructions for non owner occupied. So you got to fight it out in resale market.
I am not a real estate agent. Not a realtor. Just an tech guy who is a investor. If you have the investor hat on, my opinion, Austin is not the market to invest now. Again, it's a opinion based on my experience. So as other opinions. We all can be right or wrong. Buy I do also invest in Cape Coral, Phoenix, Denver, Nashville, Clarksville, Dallas, and Austin. So my perspective comes from experience investing in different cities just not living and investing in one city and do far by the grace of universe, all have been cash flowing and also appreciating