Will growth of Austin impact the Killeen/Temple area?

Question

Will the growth of Austin eventually impact the Killeen/ Temple area?  What is the path of progress for Austin?

Justin Robert · Answer

As someone who has done multiple deals in Bell county the last 36 months and lives here... I can tell you without a shadow of doubt that the vast majority of people I have dealt with either live or work in the Austin market and commute to Bell County. There is absolutely no denying that Austin growth is affecting this market. I am not saying we will be a suburb for Austin, but if you think the growth in Austin has not affected us you don't know the area.

Marissa Pesce · Answer

What about south and the Austin-San Antonio corridor? I'm interested in the San Antonio market, specifically towards New Braunfels and San Marcos because of the development activity there and the growing connection to Austin. There's a lot out there that talks about the "eventual merging" if these two areas. Just read this article below. @Ron McGriff, being from Dallas what do you think of the Dallas-Forth Worth comparison?

https://rebusinessonline.com/austin-an-antonio-office-markets-move-closer-while-retaining-distinct-drivers/

Ron McGriff · Answer

@Travis Lucy thanks for the insight! I’m family with how far the Sherman area is from Dallas so this helps to put it in perspective. Are there areas closer to Austin that hasn’t seen a large appreciation increase yet?

Travis Lucy · Answer

@Ron McGriff I don't think so.  It's comparable to the relationship between Sherman & Dallas, or Hillsboro & Dallas, in terms of distance, access, the amount of empty space between them, and the amount of housing options available between them.  I'll guess that there are many, many factors more important to Temple's market.  Lots of commuting between Round Rock & Austin, but even that is pretty rough.

Ron McGriff · Answer

@Bryan Noth thank you for the input! I’m starting to realize that Temple is indeed a long distance away from Austin

Ron McGriff · Answer

@Tamara Deering thanks for the input. I will take a look at some of those communities in the SE

Tamara Deering · Answer

@Ron McGriff

I agree with everyone who says that Temple/Killeen will likely never be a satellite of Austin/Dallas unless Elon Musk gets his weird hyper fast subway tunnel built but even then it is unlikely.  Texas is just too big with too many undeveloped pockets closer to those metropolitan areas than Killeen/Temple.

I am going to be the sole dissenter here because I'm one of the few Austin area investors who lives SE of the city.  I think there will be a solid market in the Lockhart, Bastrop, and Elgin areas.  The commutes from these locations are generally shorter than some of the in city commutes.  For instance, I live 33 miles away and my commute in to work is 45 minutes - 20 to 25 of which occurs in the 5 miles from Todd Lane to my office on S. 1st street.  The prices in the south east counties will always be more stable because the areas are less desirable and less well known but they are still appreciating.  If you are going to follow the heard then Manor and Del Valle and far east Austin along 969 would be my bet.

Bryan Noth · Answer

@Ron McGriff  Austin, has seen strong growth in recent years in virtually every direction.  West has largely seen trending upscale subdivisions towards Dripping Springs and Lakeway.  East has undergone a huge gentrification process and is a trendy place to live and invest, though you have to know the areas well.  South has been steadily growing with largely affordable subdivisions and  apartments.  North has seen a large influx of business and home development.

I strongly agree with @Travis Lucy that there is still a lot of distance between Austin and Temple as well with Austin and San Antonio @Marissa Pesce.  Fundamental economics would argue there has to be a tipping point where the price of living within the city of Austin is not worth the time saved by living closer.  In earnest, it's not there yet.  But I personally lean towards North as most potential, followed by South.  Northern San Antonio has also shown some rather nice development and drawn a lot of attention for investment.  As the cost to maintain a business office is Austin rises you may see San Antonio capitalize on that which could accelerate property values.

Travis Lucy · Answer

@Ron McGriff Yes, there are lower priced satellite commuter cities:  Buda, Kyle, Manor, Cedar Park, Leander, Del Valle.  Generally speaking, when comparing similar distances from the city center, east is cheaper than west.

There are some interesting new developments happening just east of the airport and along SH 130 - from Manor down to CoTA - and the land out that way is still fairly cheap.  HEB recently announced development plans for a large tract east of the airport that has a lot of people looking for land out that way.

Justin Robert · Answer

@Ron McGriff Yes. North.

Will growth of Austin impact the Killeen/Temple area?

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