Austin is No.1 for Development; No. 2 for Real Estate Prospects—ULI and PwCLLP
The annual report “Emerging Trends in Real Estate 2016” published by the Urban Land Institute and PwCLLP ranks Austin as the first in the nation for development and second for overall real estate prospects. Announced in the national fall meetings of ULI, Austin has, once again, proven itself a powerhouse in real estate development and investment. Here’s a list of the top 10 markets for real estate prospects lifted from the annual report:
3. Charlotte, North Carolina
7. Nashville, Tennessee
8. San Francisco
9. Portland, Oregon
10. Los Angeles
The report indicates that Austin has become a “perennial favourite among survey respondents” from the inaugural 18-hour cities. With only good words for the Texas state capital, the report indicates that "the 2016 outlook for all property types in Austin is well above average, but survey respondents were particularly favourable toward single-family and retail."
Austin garnered top spot for development across all 75 markets surveyed. It also garnered the second spot for homebuilding and the fourth for investment.It’s a powerful runner-up to Dallas, which managed to gain top spot for overall real estate prospects and homebuilding. Houston, on the other hand, fell short of expectation when it dropped to the 30th rank from being last year’s top spot, thanks to "concern over what the fall in the price of oil combined with the current level of new development gave survey respondents pause for 2016."
Austin’s main stronghold could be said to come from the millennials (aged 16 to 35) living in the area. 32% of Austin’s population falls in that range, and the city has surpassed cities like Los Angeles and Madison, Wisconsin, for appealing to young adults.
Doing business in Austin is also favourable, thanks to costing only 102% of the national average, as compared to the cost of doing business in New York City (at 160%) or San Jose, California (at 129%).
While the report has many good things to say about Austin, it did mention that the only concern it had was that the market may be growing faster than the local infrastructure. The reports states that, “the only potential shortcoming perceived by the local market is in public and private investment.”
If you would like to read the full report, you may access a full copy of Emerging Trends in Real Estate 2016 here. If you would like to learn how to take advantage of the great opportunities that await you at Austin, contact Cain Realty Group today—we would be glad to help you in making a good real estate investment in one of the hottest real estate markets in the U.S.