Don't expect the Austin market to slow down anytime soon. According to an annual survey from PricewaterhouseCoopers and the Urban Land Institute, Austin will remain a top target for real estate investors in 2016. Based on a survey of 1,500 real estate industry professionals, Austin is the No. 2 market to watch.
Large cities like New York City, Los Angeles, and Chicago have traditionally been the hottest markets, but "secondary and tertiary" cities are becoming more enticing because of employment growth and cross-generational appeal. However, gateway cities like Austin "continue to attract lots of people," thanks to the sheer amount of places to live and work.
"The Texas state capital has become a perennial favorite among survey respondents," reads the report. "Austin continues to benefit from diverse job creation ranging from service jobs to higher-end STEM and technology, advertising, media, and information (TAMI) positions. Austin remains an attractive place to live for all generations."
A breakdown of the local market shows Austin's many strengths. Austin ranks No. 1 for development, No. 2 for home building, and No. 4 for investment. All property types are attractive, but local single-family and retail properties are the most favorable.
The outlook may be rosy, but the report cautions that the growing real estate market may outpace Austin's infrastructure, which comes as no surprise to the Austinites stuck in horrendous daily commutes.
Dallas-Fort Worth is the No. 1 market to watch for 2016. San Antonio ranks No. 20 overall. Houston is No. 30, a big step down from its No. 1 spot last year.