Texas- Hottest Real Estate Market in 2020?

Question

Article Highlights:

"Real estate investors have been flocking to the Lone Star State this year, driven by a combination of population and employment growth."

"Four of the ten fastest growing metropolitan regions in the country were based in Texas.  These included Austin, Dallas, San Antonio and Houston, according to the latest census data."

"Austin’s population has been growing at an average rate of 55,500 people every year or 155 people every day since 2010. The biggest source of new residents for the city come from other parts of Texas, followed by California, Florida, New York, and Illinois."

"The city also leads in job creation, Economists at PriceWaterhouseCoopers expect the city to create more jobs than any other metropolitan area in the country in 2020, despite the pandemic."

“[T]ech talent and population has spurred the commercial real estate sector too. Austin was ranked as the second-best commercial real estate market in 2020, by CBRE. “

https://www.marketcurrentsweal...

Jon Shoop · Answer

I work at a property management company in DFW and we're seeing the same thing here in both the Dallas and Fort Worth markets. Homes are going quick on the rental market as well as the sale market. Finding a duplex or multiplex here in Texas is hard enough, DFW it's like "get in line!" if you want to have a shot. Lots of fun times ahead in North Texas!

John Morgan · Answer

Over 600 people a day are moving to DFW. Mostly from California. I’m not sure how many are leaving the area, but dang that’s a lot of people. It’s all about supply and demand. That’s why I’m loading up on rentals in this area. Being that Texas is a business friendly state, companies keep coming from over taxed and over regulated states like CA. Almost all my rentals get taken before I even list them. Word of mouth gets out and people need a place to rent. SFRs under $1700/month are in high demand out here. My sweet spot is to buy homes in the 100k-150k range.

Jon Shoop · Answer

Wow that is good to know and very interesting! I saw a statistic recently and it said that DFW has a ~6-8% higher renter vs. owner rate than the U.S. average. Great market for #investments, #buy and hold, and #BRRRR

Aaron Gordy · Answer

Good post! I find it very interesting that many folks move to Austin from other parts of Texas. When I moved here in 2000 from East Texas it was 100 people a day. Now its 150 people a day. The traffic has become worse but I have yet to sing Good night Irene because appreciation keeps occurring.

Ryan Kelly · Answer

@Bryan Noth While Austin may not be "recession-proof", the metro may be as recession-resistant as any area in the country. Combined with the San Antonio and I-35 corridor, this area is hard to beat for long-term wealth creation.

Bryan Noth · Answer

@Ryan Kelly I agree, while no city may claim "recession proof", at 155 people a day for the last 10 years Austin is indeed hard to beat

Bryan Noth · Answer

@Aaron Gordy I found that except interesting as well with the migration trends within the state to the Austin MSA.  While I do not believe appreciation is a guarantee, the historical pattern of consistent growth and continued projection is quite reassuring on continued potential home value growth.

Bryan Noth · Answer

@Jon Shoop I am not surprised.  Texas as a whole has strong major MSAs.   I thought this excerpt was interesting concerning the Dallas market:

Texas- Hottest Real Estate Market in 2020?

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