Hospital Being Built Across Street. Time to Rent?

[Andrew Horner]

TL;DR  A big new hospital is being built across the street, should I expect a short surge in rental rates/home prices that cools off when the initial wave of employees move in? Or do prices rise and stay there?

--

We own our home in a new suburban neighborhood (Sunfield, a masterplanned community in Buda, outside Austin). A brand new hospital is being built across the street from the neighborhood; we're one of the closest homes, and certainly the nicest neighborhood in the area. It is a newer development with new houses being built and completed on the backside of the neighborhood probably weekly at least.

We have high taxes and also a MUD tax, which I think makes it hard to cashflow with renters ("Rent Zestimate" is 1900, after our coming $150/mo. tax hike, our PIMI will be $2250/mo). For this reason we'd expected to stay here and shop for a rental property in a different area. But if this will be a window of opportunity to make a real cashflow, perhaps we should rent this out while we can.

Thanks for the input!