Austin: Easy College Town to Afford

AUSTIN AMONG THE EASIEST COLLEGE TOWNS TO AFFORD

The Austin, TX real estate market is weathering the storm. Despite a tumultuous economic climate, a major recession that’s been particular hard on the housing market, and high unemployment, Austin has weathered the storm, offering solid returns on real estate investments and a stable job market thanks to an educated workforce coming from the University of Texas.  We’re fortunate to have had stable home prices, rising home sales, stable rent prices in central Austin neighborhoods (particularly West Campus, North Campus, and Hyde Park that cater to students), and increases in housing starts and new jobs despite the economy.  We’ve even seen a strong downtown condo market develop and prosper over the last five years, and despite some naysayers claiming we’re going to have a downtown condo bust akin to Miami or Las Vegas, the evidence doesn’t justify their claims - our inventory is actually quite low compared to the large numbers of new people moving to central Austin, and we’ve seen strong sales despite changes in the lending arena and overall housing market issues.  The bottom line: Austin has been and will continue to be an excellent place to invest, whether you are a UT student or not, and according to recent research by Coldwell Banker, Austin is among the easiest of the desirable college towns to afford.

The UT housing market has always been attractive to investors - UT students and their families aren’t the only ones who see the long-term value in good neighborhoods (particularly on houses and duplexes - you can search the MLS here or lease search for Hyde Park, West Campus, and North Campus) that offer access to entertainment, UT Austin, transportation, parks, and shopping.  Enrollment at UT is more than 50,000, yet only 14% of all students live on campus due to the simply fact that there are less than 7500 beds available for on-campus student housing. Rental rates are close to $1.00 per square foot throughout central Austin, and UT is no exception - despite dramatic increases in the number of apartments available near campus, the prices have largely held their ground.  Occupancy is well over 90% (often over 95% at the end of each “pre-leasing” season, and in West Campus specifically recent occupancy rate figures show class A and class B/D apartments over 97.5% occupied!  Imagine owning investment property in central Austin and having only a few days of vacancy a year and commanding top-of-market rental rates!

The fact that homes in Austin are also relatively affordable (the average is just a bit over $200,000 despite Austin having a strong economy, a top-tier university, and tons of amenities) makes investing in central Austin real estate even more attractive.  And now, with home prices stable but reasonable, lots of inventory on the market, the extended FHA $8,000 tax credit, and the easing of restrictions on condo purchasing requirements, there’s never been a better time to in invest in central Austin or UT real estate.  Austin home sales recently saw a 6% increase in September over last year, and the average sales price has also crept up about a percent and shows no signs of reversing direction.

For more information about UT Austin Real Estate or any other Austin Real Estate, please check us out online. We’re your information source for UT Austin real estate, West Campus property, North Campus property, and property management. To get connected with an agent immediately, call 512.472.9378 or email info@westcampusliving dot com.

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