With Austin, Texas now among the 10 fastest growing cities in the United States, the region has transcended, or perhaps leveraged, its reputation as “Keeping Austin Weird” to emerge as a major city with a thriving economy that boasts strong art, culture, food and entertainment. scene Traditionally known for its diverse cultural makeup, artistic sensibility, unique recreation and Texas attractions, the lifestyle of this region truly offers something for everyone, including celebrities, billionaires and the jet set.
While Austin has always had its share of famous personalities and high-net-worth individuals who call the city home, the COVID pandemic ushered in a new wave of high-net-worth transplants from Silicon Valley, Seattle and other major cities. This luxury residential renaissance has not only made Austin a growth market for lucrative luxury real estate opportunities, but also for major national businessmen moving their C-suite and other top executives to the region.
As exciting a place as Austin has become, Kat Ashley of the Coldwell Banker Texas Realty Collection Group cautions that there are some key points to consider before investing in luxury real estate in and around Austin. “Acquiring luxury real estate in Austin requires a careful balance of strategy and an appreciation of the city’s unique culture,” he says. “Despite some adverse economic conditions and recent difficulties, next year should continue to be a good time to invest in luxury real estate in and around the Austin region.”
Beverly Hills Realtor Tracy Tutor appears to agree with ‘Million Dollar Listing’, with reports indicating her belief that ‘now is the time for luxury home buyers to get a deal’ . Amidst his remarks to BusinessInsider.com, Tutor indicated that “Even though Austin home prices are down 9.7% from their peak in 2022, luxury homes hitting the market still attract multiple deals. What decreased in the last quarter of 2022 has now been evened out.” Tutor continued, “With a lower cost of living compared to cities on both coasts, a booming market for tech jobs, and year-round warm weather, Austin continues to be a market alternative prime luxury destination for buyers looking beyond California and the East Coast, it’s no surprise that Austin property values have risen dramatically over the past 25 years compared to its neighbors in the luxury real estate market of the capital of Texas to the west and the east Amid this optimism that has spurred new excitement in Austin’s luxury real estate sector, Kat Ashley further underscores some points of importance for buyers interested in purchasing property properties in the region and its surroundings.
1. The opportunity persists. Austin, like every other city in the country, is not immune to the financial difficulties that exist in today’s economy, including rising interest rates, financial banking crises, job losses and inflation. The important thing to remember is that where there are difficulties, there are always opportunities. This includes the luxury market and commercial spaces. Despite some national headlines to the contrary, Austin’s real estate market is still alive and well. In fact, a recent report cited that Austin’s real estate market is “outpacing national trends.” Deals still close, and yes, multiple deals are still fashionable in certain neighborhoods. Compared to the previous year, the price decreases and price increases equal more opportunities for buyers. For the foreseeable future, Austin’s real estate market is still pushing forward.
2. Long-term perspectives. Austin is already a natural draw for people. Perhaps one of the biggest benefits of investing in real estate in Austin is the city’s strong economy and job market, which should continue to drive demand for high-end housing in the area. Additionally, Austin is known for its excellent schools, world-class entertainment and vibrant culture, all of which can add to the value of a long-term luxury home investment. When investing in high-end real estate, focus on and visualize the future consideration. Understanding infrastructure, growth, city projects and planned metro services can lead to early investment opportunities in the luxury real estate landscape.
3. Amenities matter. High-end real estate in Austin is different from Seattle or California. Before you buy a luxury home priced in and around Austin, understand how far your money will go. With location in mind, as an example, consider home features such as an appliance pantry in the kitchen, a fully equipped tiered media room, ceiling heights throughout the home, floor-to-ceiling windows to roof, office and gym spaces, in-laws. suites or casitas and outdoor kitchens and living spaces. These impact not only the current purchase value, but also future resale value. There are ample opportunities to build your dream home in the Austin landscape, but finding a reputable builder that has successfully weathered the pandemic boom era and continues to thrive in Austin is imperative for a home of well designed and built luxury. 4. Rise of technology. Finally, it is important to understand how the tech industry is affecting the Austin housing market. Austin has become a hub for tech companies, with major players like Tesla, Apple, Google, Dell, Samsung and Amazon having a major presence in the area.
As these companies continue to grow and expand, they are driving demand that is luxury priced. In addition, the technology industry is creating high-paying jobs and attracting a young, highly educated workforce, which is fueling demand for high-priced housing in the area. As long as the tech industry remains strong in Austin and companies continue to relocate operations and staff to the Texas market, Austin’s luxury housing market is likely to continue to thrive. As Austin’s growth and landscape continues to move the meter toward establishing itself as a major American city, we hope it preserves the authenticity of its notoriously artsy and eccentric culture. After all, it’s the rarity that makes this city truly unique. ~~~