Forbes is known for all types of best of lists. Chances are, if you find any “best of” cities in the US lists, Austin will be on it and their most recent best of list is no different. If you’ve been reading our Austin Accolades blog, you know Forbes isn’t the only one to name Austin one of the best cities to invest in 2015. PricewaterhouseCoopers and the Urban Land Institute recently released their list and they named Austin the #2 city to invest in 2015.
Austin Real Estate Market is Strong and Not Expected to Slow
The Austin real estate market has been strong for about 3 years now and it really doesn’t appear to be slowing down. People are moving to Austin in record numbers, our job market remains strong and is expected to grow in 2015 and housing prices are still affordable. Some may think Austin’s housing market is bound to slow down, but I just don’t see it happening when we have more people moving in than out and a strong job market. I can tell you story after story of clients of ours who moved to Austin not knowing a soul and within a couple of weeks, they were gainfully employed in their industry.
Buy and Hold Seems to Be the Best Strategy for Austin Investors
Though it wasn’t too long ago that Austin investors could buy a home, make a few updates and sell it for a profit, we are seeing fewer and fewer of those opportunities. But, with rents steadily increasing, investors can find cash flow positive homes with minimal down payments. Experts predict Millennials will enter the housing market in full force in about 5-8 years, and investors holding the supply will profit from the increased demand. And, it won’t cost them more than their down payment if rents stay strong.
Austin Named #1 on Best Cities to Invest in 2015 List
105 of the largest US metropolitan areas (550,000 people or more) were evaluated by Forbes and Local Monitor, a data company that monitors over 300 US real estate markets. After crunching the numbers, Austin landed the #1 spot on the best cities to invest in 2015. Some common themes in the top 20 include strong population and job growth, relatively low home prices that are still undervalued by Local Monitor’s figures. Austin was one of four cities (along with Salt Lake City, West Palm Beach and Denver) whose prices were a bit higher than others on the list, but because of the tremendous job growth and steady influx of people, Local Monitor and Forbes believe there are enough mitigating factors to make Austin a safe investment. Sounds a little like a response I wrote to Trulia’s claim that Austin is overvalued.
Texas Cities Fared the Best Among States
Texas had the most number of cities in the top 10 than any other state in the US. Austin, Houston, Dallas, San Antonio and Fort Worth all made it to the top 10 best cities to invest in 2015. And, even though the future of oil prices is a bit shaky, Forbes believed these Texas towns are economically diversified enough to sustain the uncertainty, especially in a buy and hold strategy.
Top 20 Best Cities to Invest in 2015
According to Forbes, here are the top 20 best cities to invest in 2015:
- Austin, TX
- Provo, UT
- Houston, TX
- Orlando, FL
- Dallas, TX
- San Antonio, TX
- Denver, CO
- Boise, ID
- Oklahoma City, OK
- Fort Worth, TX
- Phoenix, AZ
- Salt Lake City, UT
- Atlanta, GA
- North Port, FL
- West Palm Beach, FL
- Jacksonville, FL
- Twin Cities, MN
- Tacoma, WA
- Sacramento, CA
- Grand Rapids, MI
To read more, check out the Forbes article here.
Looking to Invest in Austin Real Estate?
Whether it be to buy a home to live in, or buy a home as an investment, Austin is one of the safest bets in the country. If you’ve been thinking of getting into the market, do it now while interest rates are low. If interest rates rise as expected and home prices even remain constant, affordability will plummet.
Not Quite Sure Which Neighborhoods to Start Your Home Search?
We know Austin neighborhoods pretty well. With a little bit of info on the type of neighborhood you’re looking for, we can show you where to find it. Try our Austin Neighborhood Finder and see for yourself!
Buying a Home in Austin? You Need a Buyer’s Agent
A buyer’s agent will help you evaluate each property, give you insights to what renters are looking for and what things will make the home most appealing when it comes time to sell the property. They’ll also help you negotiate the best price possible for the house. Our team specializes in buyers. We know how to make the process as efficient, stress free and effective as possible. Check out our Austin Home Buyers page to learn more about our team and how we work. Then, call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Buyer Survey to get started. Remember, a buyer’s agent gets paid by the seller, so it costs you nothing to hire your own buyer’s agent.