All Forum Posts by: Bryan Noth
Bryan Noth has started 153 posts and replied 1042 times.
Post: Austin Texas Metro Unemployment drops to 4.2%
- Realtor
- Austin, TX
- Posts 1,068
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Post: Hutto approves incentives for Ovivo factory
- Realtor
- Austin, TX
- Posts 1,068
- Votes 1,079
More growth along the Eastern corridor of Austin, Texas as tax incentives were approved and it appears the company will expand in the region.
Post: Knife maker to put HQ, big factory in Leander
- Realtor
- Austin, TX
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- Votes 1,079
Knife maker to put HQ, big factory in Leander
The article details that the company will be relocating their Headquarters from California to this NorthWest suburb of Austin, TX
Article link below:
Post: Would Love to pick everyones brain and commercial multifamilys
- Realtor
- Austin, TX
- Posts 1,068
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@Alex Grullon the $1MM around Austin will be tough. I had a deal come across Monday on a 10 unit apt complex in San Antonio under that price point with the T3 showing 5.8% cap rate. Only 1 unit updated so upside on value add is there too.
Post: More than 250 companies circling Austin area
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- Austin, TX
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Post: Would Love to pick everyones brain and commercial multifamilys
- Realtor
- Austin, TX
- Posts 1,068
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@Alex Grullon there are many commercial multifamily in and around Austin, but the cap rate tends to be compressed closer to the city center. Value add is a great option but that is often an indicative of being capital intensive to offset the DSCR. You can get better price per unit and cap rates in smaller and more distant suburbs though. What metrics are you considering? Price point? And in truth, what is your goal for the investment (cash flow or value add for example)?
Post: July 2021 Market Update for Austin, TX MSA
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- Austin, TX
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The stats are in for July 2021 of the Central Texas Housing market. Prices have continued to see an increase in year-over-year data but the month-to-month rate actually saw a slight decrease.
The The City of Austin saw an change in median home price from $575,000 to $574,975, a month to month decrease of $25 and a 37% increase from the previous year. The Austin-Round Rock MSA saw an change in median home price from $482,364 to $480,000, for a month to month decrease of $2,364 and a 37% increase from the previous year.
The following infographics and data is courtesy of the Austin Board of Realtors:
The uptick in housing inventory is a relief for many investors and homebuyers but the available inventory and rate of turnover keeps this strongly in a seller’s market. Both the City of Austin and the Austin-Round Rock MSA are sitting at 0.9 months of inventory. This is up from preceding months but still lower than the available inventory during the same time frame in the previous year.
On an interesting note, the entire Metropolitan Statistical Area saw a decrease in Days on Market, down to just 12 days.
While Austin and the Central Texas region have performed quite strongly this year, it is worth noting that the nation as a whole is low on available housing inventory. Austin is just one of the lowest inventory regions for the state and the country. The demand is only growing. The US Census Bureau reports 184 people per day on average relocate to the MSA. That places Austin as the 4th fastest growing metropolitan area in the United States by raw population gain. Texas interestingly had 3 of the top spots: Austin, Dallas and Houston. Texas overall ranked number 1 with the greatest population increase in the nation for 2020s numbers.
And while home prices have cooled for the area this month a recent report from CoreLogic showed that the Austin MSA saw an 11.9% year-over-year rent growth for single family homes. Many industry experts believe the rising home prices and low housing inventory have driven many would-be homebuyers towards renting and the surge in that demand shows. This trend saw a 7.5% increase on average across the nation and three Texas markets surpassed that average: Austin, Dallas, and Houston in descending order of the rate of change.
Disclaimer: The information provided here is for educational purposes only, past performance is never a guarantee of future performance.
Additional sources:
https://www.census.gov/newsroom/press-releases/2021/vintage-2020-population-estimates.html
Post: Amazon reportedly planning fifth Austin-area delivery station
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- Austin, TX
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Post: CoreLogic Report: Single-Family Rent Growth Increased 5x
- Realtor
- Austin, TX
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Glad you enjoyed it @Cameron Tope!
@Scott M. The 5x does refer to a five fold year-over-year increase from the previous years' rental growth. Not terribly unsurprising as 2020 cast a lot of uncertainty on the market but the 5x increase on that metric is nonetheless impressive. No intention to misconstrue as 5x gross rental amount increase, this article emphasizes the increase is purely in respect to the rate of growth change from the previous year.
Post: Financial tech giant Green Dot moving HQ to Austin, Texas
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- Austin, TX
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Article link below: