A recent article in the Austin Business Journal reports that Austin can absorb the 4000 planned units that are the books for downtown Austin.
For those of you who know me — I have been a real skeptic about the Austin Condo Market. Our firm has sold exactly ZERO condos in Downtown Austin.
This new study commissioned by the owners of the Austonian by Economist Ray Perryman sites the fact that Austin is adding 40,000 new residents annually. In his study he says that rising energy and traffic costs will drive the downtown living market. He may have a point there. The city fathers never imagined the current growth levels that this city is experiencing. Traffic problems will only get worse. Today it may only take 20 minutes to get from South Austin to Downtown. But in the next 5 years that drive time could potentially double.
My husband and I moved to Austin from LA. In the 10 years I was in LA— the traffic drive times doubled. The real estate that was located close to the core of the city experienced the highest appreciation rates.
Click here to read the entire Austin Business Journal Article
For those moving to Austin from places like LA and New York, the downtown condos offer a familiar lifestyle at a bargain price. It is my understanding that those condos within a comfortable walking distance to Whole Foods Market are in higher demand. It makes sense – those embracing the downtown lifestyle don’t want to spend their time driving around looking for a parking spot.
I still can’t bring myself to sell one of these units to an investor. I think there are better parking spots for investor $$. It would take a 50% downpayment for an investor to break even on a monthly basis on an premium downtown condo.
