Austin, Texas is one of the hottest real estate markets out there in the U.S., and according to Ari Rastegar is CEO of Rastegar Property on Forbes, expansion in Austin is continually fueled by a rising population, tax benefits, industry influx, affordable housing, available jobs and highly rated schools.
With 50,000 new residents in Austin between 2017 to 2018, and several major companies setting up shop in the city, Austin has seen a boom in residential investment and construction.
“It’s a growth market for the single-family and small multifamily investor.,” Rastegar said. “You can own a pocket of homes or a vintage multifamily to garner prime rents and positive cash flows. There’s tremendous opportunity to make healthy margins and still provide an accessible price point for the tenant.”
Investors looking for favorable cap rates, stable returns and low vacancy rates see Austin as a social and economic environment with excellent demand factors. Potential deals exist across the range of values and property classes, and you can find value-add opportunities with numbers that cash flow.
Surrounding areas, such as Round Rock, Buda and Kyle, are experiencing the trend and also presenting excellent investment opportunities, according to Rastegar. Median home prices in these areas are around $315,000, “creating unique appeal for young professionals and families transitioning to Austin.”
Austin itself is still affordable compared to other major metropolitan markets in the U.S, and according to Rastegar, there is still room to grow, as homebuyers can buy a starter house and still expect to have excellent equity growth in their property.
“Austin has it all: a booming economy, a scholarly environment, a creative culture, an educated workforce, tax advantages and more,” said Rastegar. “For the same reasons that residents and corporations choose Austin, insightful real estate investors and developers should position themselves to meet the growing demand for residential and commercial space.”