In a recent report by US News and World Report, Austin was named one of the Top 10 real estate markets for investors to watch in 2015. For those who read Trulia’s recent article about Austin being the most overvalued market in America, this new report confirms what we’re actually seeing in our market, not what an economist in another state speculates. Austin’s real estate market is stronger than ever and is predicted to continue.
Millennials Will Drive the Growth in the 2015 Housing Market
Millennials made up ⅓ of the world’s population in 2013 and they are predicted to impact the US housing market for years to come. Millennials have traditionally been renters. Some say it’s because of high student debt and flat wage growth and others say millennials don’t value home ownership as much as they do living in a highly desirable area. Homeownership rates in adults under 35 reached 36% in Q1 of 2014, down from it’s peak of 43% in 2005. It is expected as millennials move to more affordable cities like Austin, they will take the plunge and buy a house.
Austin in Top 10 of 100 US Metros for Investors to Watch
The study evaluated the top 100 US metros and came up with 10 cities, including Austin, where they project an increase in millennial home buying in 2015. Austin was chosen because of it’s steady job growth and affordably priced homes.
Top 10 Real Estate Markets for Investors to Watch in 2015
The following are the 10 real estate markets for investors to watch in 2015 by US News. Two are in Texas. They are in alphabetical order.
- Austin, TX
- Dallas, TX
- Denver, CO
- Des Moines, IA
- Grand Rapids, MI
- Minneapolis, MN
- New Orleans, LA
- Ogden, UT
- Salt Lake City, UT
- Seattle, WA
10th-15th Real Estate Markets for Investors to Watch in 2015
Here are the runner ups. Austin is often compared to Raleigh and Nashville, and I’m surprised they didn’t make the top 10.
- Madison, WI
- Nashville, TN
- Omaha, NE
- Raleigh, NC
- Washington DC
Investors Want to Own the Supply When Demand Hits
If you’re looking to make money in real estate, you want to pay attention to market trends. Places with job shortages and little growth are not going to have surges in demand. Places like Austin that have a strong job market that’s predicted to grow in the near future are in high demand among millennials graduating college. Instead of moving home, millennials are looking for less expensive areas to live that still have plenty to do. As demand continues to increase in Austin, so will prices. Buying an investment property before demand increases any further is the best way to protect your equity.
Ready to Invest in Austin?
We’ve helped many investors buy investment property and own our own investment property as well. We know what renters look for in homes and can help you find homes that will be easy to rent. Schools are a big driver in our rental market. Check out our series of most affordable Austin neighborhoods with the best schools, as well as our lists for Round Rock, Cedar Park and Buda.
To learn more about our team and how we represent buyers, check out our Austin Home Buyers page. Then, call us at (512) 827-8323, email us at info@11OaksRealty.com to schedule a no obligation consultation.