Photo courtesy of Matt Peoples
As 2013 draws to a close, predictions and expectations for the New Year are popping up across all industries. The Urban Land Institute recently published its annual report, titled Emerging Trends in Real Estate, and named Austin as number seven on its list of the top ten real estate markets. The report focuses on aspects in both commercial and residential real estate, and Austin has been a hot market for both. Austin secured the number seven spot based on its high outlook for investment and development prospects in 2014. Although San Francisco took the top spot, two other Texas cities made the top ten. Houston came in as number two while Dallas was ranked just two spots above Austin at number five. Furthermore, Austin beat out other top markets like Miami, Boston and Los Angeles.
According to the report, several factors have contributed to Austin’s rise in the national real estate scene. The city’s strong economy has created an environment where investors are willing to take more risks. Investors are also attracted to the city’s stunning job growth and population growth, which create a need for new residential and commercial developments. Major technology firms like Google, Facebook, Apple and Oracle have set up offices in Austin in order to take advantage of the city’s highly-trained workforce, low taxes and low business costs. These opportunities have attracted employees from outside the city, which in turn is driving the city’s growing population and hot housing market. New construction and development of single-family homes is expected to rise with this influx of new citizens coming to Austin.
What does all this mean for Austin in 2014? As long as the Austin economy continues to remain strong into next year, the real estate market will reap the benefits. The report indicates a high outlook for homebuilding prospects in 2014, so Austinites may soon see more and more new housing projects taking off all around the city. New office buildings and other commercial developments could also rise if other top companies decide to call Austin home. 2013 has been a great year for Austin real estate, and 2014 is shaping up to be even better. To view the entire Emerging Trends in Real Estate report, check out the website for the Urban Land Institute.