Who would have ever thought that there would be a discussion that the Berkley of Texas, Austin, would be considered one of the prime condo markets in the United States? Texas, the land of oil, cattle, ranches, guns....and condos? Yes condos....or townhomes. But why?
Though Austin is seeing modest correction in the market, the city is still at the top of the list of most major magazines as the hottest spot to move. Having lived in San Diego, I see Austin at about 8 years behind San Diego in the condo/townhome market. There are several factors that have and will be driving the condo/townhome market well into the future in Austin, more so than other cities in Texas, such as San Antonio, Dallas, Fort Worth and Houston. See facts on our website at www.TopKWGroup.com
Austin is like no other city in Texas. Austin is young, hip, urban, and on the cutting edge of technology. This has been a huge attraction from many people in numerous cities in California, Boston, Raleigh, Washington DC/Maryland/Virginia and Chicago. Mostly Californians relate to Austin due to the topography and lifestyle being so similar. Our weather is somewhat similar to the inland areas of California, but with a tad more humidity, but nothing like areas of the country to the east. Thus, for a third of the price of real estate, Austin is pretty darn attractive to be in such a similar atmosphere.
There is and will be a combination of the younger generation wanting to be somewhat closer to the thriving downtown market, an increasing demand for life enjoyment over maintenance, and an increase in the baby boom market wanting homes in several areas of the country. Much of this mentality is coming from California and is driving the Austin condo/townhome market. This trend is being reinforced by the local government and will thrive over the next several decades.
The prevoius mentality of having the larger home, larger property is strongly being influenced by a new attitude of less maintenance and a stronger desire to enjoy life, travel, and entertainment.
The city of Austin is strongly encouraging developers to build townhomes or condos and are offering strong incentives to do so. The next agenda for the city over next decade is to establish a light rail system that make living closer to the center of the city more attrative than the typical commute of communities 20-30 miles from the center of town.
Mind you the suburbs will always do well, but there will be a noticeable shift of a drive to build a lifestyle outside the city to build a lifestyle deep in the city. As time goes on this will increase the demand for multifamily housing in the Ausitn market. There will be a strong demand not only in downtown, but within a reasonable 10 mile radius of Austin. "The Hillside" is such a project: www.Hillside2222.com
Thus, the condo or townhome market will be the trend of the future and should be a focus for those moving to the Austin area that desires the lifestyle environment noted above. The thought that the condo or townhome market will be grossly overbuilt in the coming years is grossly exagerated. As in any real estate market that will be fluctuations in the economy that have an effect on the entire real estate industry, not just townhomes or condos.
When people sit down and analize their annual expense on a single family home in detail, they will then understand the concept of the higher HOA fees, because the hassle factor of maintenance is taken care of. The cost is there in a single family home, but rarely does one put a monthly assessment for themselves to cover maintenance costs. If one did, they would see the close comparison.
So get ready, as the future of condo or townhome living is here in Austin to stay and thrive for decades to come. Yes, we will see corrections in the future, but if history is any indicator, we will not see the strong bell curves seen on the west and east coasts. Our markets tend to be polar; thus, the success of Austin continues.
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