Ones to Watch
'Supernova' Austin snags a No. 1 spot on competitive real estate markets to watch list
Austin hasn't exactly been flying under the radar, least of all its housing market. Even among the top in the nation — and even as things start stabilizing — it still stands out. That's in the eyes of the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC), anyway.
The two entities recently released their "Emerging Trends in Real Estate" report for 2024, placing Austin at No. 1 for homebuilding prospects and No. 5 overall out of 80 total cities.
The 45th edition of the report arranges markets into four major groups with further subcategories: Austin is a "Magnet," meaning that both people and companies are moving in. It belongs to the "Supernovas" subgroup, signifying that it is among the fastest-growing cities in the report, although the growth for these cities does tend to be slowing. The "Supernovas" burst onto the national scene about a decade ago.
There were five "Supernova" cities on the list:
- Nashville (No. 1 overall)
- Austin (No. 5)
- Raleigh/Durham (No. 9)
- Jacksonville (No. 36)
- Boise (No. 41)
San Antonio also made the top 10 overall, but was classified as a "Magnet" and a "Super Sun Belt" city. This category reflects that the city is "large and diverse but still affordable," and points out that warm weather is a draw. It also mentions "lower regulations and taxes" and "a virtuous cycle between population in-migration and corporate relocations, which feed off each other."
This was San Antonio's debut on the list, and it was right behind Austin in the homebuilding prospects list, on which it scored No. 2. Austin fell one place overall since last year's report.
It appears that Austin's "Supernova" status had a hand in San Antonio's growth, since the Alamo City is the capital's largest out-migration market — in other words, more people are moving from Austin to San Antonio than to any other city ranked on the list. Most of the people moving in to Austin are, as many already know, Californians from Los Angeles and San Jose.
Another recent study found that Austin has the top three fastest-growing "affordable" suburbs in the country: Georgetown, Kyle, and Leander in order from fastest to less fast.
Elsewhere in Texas, Dallas-Fort Worth made Nos. 3 and 5 overall and for homebuilding prospects, respectively; Houston made Nos. 11 and 7. These cities, like San Antonio, were both part of the "Super Sun Belt."
No matter how it shakes out, it looks like it's good to be in major Texas cities right now.