After Austin was named the 2nd best investment market just a year ago, the area has now climbed to the top spot eclipsing our neighbors to the North in Dallas! According to the annual Emerging Trends in Real Estate report from PwC US and the Urban Land Institute, which interviews thousands of the top investors in the country this years top spot belongs to the Capital City!
"Viewed as a fluke when it hit the study's top 10 list five years ago, Austin’s rise to the top of the list signals the durability of the city’s long-term appeal to investors," says Mitch Roschelle, PwC partner and real estate research leader, in a release. "Austin, along with many of this year’s top 10 cities, boasts attractive, niche neighborhoods and a vibrant, diverse economy."
The report goes on to say, Despite Austin’s growing popularity, it remains a comparatively small market in terms of investment opportunities. While Austin is unlikely to attract a meaningful amount of off-shore capital, it tops many domestic investors’ wish lists. This makes the market very competitive. Despite the amount of competition, local, regional, and national real estate participants operate in relative harmony in the market. This cooperation has helped keep adequate levels of debt and equity capital available for investment opportunities.
When the issues of affordability and population in Austin which we all know our hotbed issues within the community are addressed in the report experts went on to say. "The housing market, both multifamily and single-family, appears to be making adjustments to match supply with the requirements and locations desired by the changing population base," states the report. "To address transportation concerns, the market is likely to continue to see more mixed-use development not only to bring compatible uses together, but also to enhance the experiential feel of developments."
Along with Austin and Dallas the report also includes San Antonio (32) and Houston at 40. Houston's drop is tied to the struggling domestic oil market.