Will growth of Austin impact the Killeen/Temple area?

6 Replies

Will the growth of Austin eventually impact the Killeen/ Temple area? Seems like only a matter of time before prices rice in that area.  What is the path of progress for Austin?

The economic driver's in Killeen are completely different than those here in Austin. If that military base is closed, Killeen will be a wasteland of rundown houses and very full pawn shops. 

I'm sure you're thinking that the growth in Austin has already spread 30 miles past it's borders and Killeen is only 30 more so surely they will grow together.  And you'd be right, in 30+ years. 

The path of progress in Austin is up. Eventually we will get a new zoning rulebook here and our residential buildings will start going vertical. Knee surgeons will be in high demand for all of us will live in 4 story homes. 

I've got 2 properties in Copperas Cove, the town next door to Killeen and Fort Hood.  It's more quieter and doesn't have the craziness of Killeen.  Fort Hood was my first duty station in the Army back in 1997 and I've spent 10 of my 20 years here at the "Great Place" (ugh.....).  I have seen the growth of this area, the nearby towns, and Austin first hand.  I know a lot of Soldiers who stay in the area once they retire or transition out of the service.  

Fort Hood isn't going away anytime soon and Texas politicians will fight tooth and nail to ensure that the world's largest Army base will not disappear from their state. You will have no problem finding renters but be prepared for a high turnover as military personnel come and go. I'm not too concerned with appreciation as my SFH and duplex are buy and hold properties.

However, I've noticed that prices have gone up for the nicer units and multi-units.  I've kept an Excel spreadsheet of potential properties from that area from 2017.  A couple of weeks ago, I came across that same spreadsheet and decided for ***** and giggles to look them up.  The property values doubled in two years!  Dam!  I should have bought them back then but hesitated, thinking that they were too expensive at the time.  Austin doesn't have to influence the Killeen/Fort Hood real estate market, it's its own unique market.  

@Ron McGriff

They were in the Copperas Cove/Killeen area. A 4-plex I saved on Zillow back in 2017 was back in the market this year for double the price. My SFH, a starter home in Cove, appreciated 35% but, again, I'm not selling. The newer, nicer homes are doing pretty well too. There's a new HEB that opened in 2013, Whataburger, new stores, etc. I didn't recognize the area after returning there briefly for just a few days. That area is growing. But that's the military community from Fort Hood that's creating this expansion.

I've been looking at those cheap multifamilies there in Killeen for a while now, and I very often get questions from new investors about the area, but it's generally just because it's cheap. It's far enough away that it won't be affected anytime soon, but it's also very risky because it's a single-industry town. Don't let the cheap prices seduce you. There's money to be made everywhere with the right strategy, but be careful you don't pick up a minimum wage job.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here