We stopped in Austin next on the 2019 Figure 9 Real Estate Multi-Family Market Tour. Austin has been growing a lot over the last several years, so we definitely wanted to visit Austin on this trip to see if we could find some Value-Add Multi-Family investment opportunities.
Here is a summary of what we found:
Below are a few of the key market indicators:
- Rent Growth: 4.0%
- Vacancy: 6.7%
- Jobs: 2.4%
- Population Growth: 2.4% – Highest on this trip
Here are some of the PROs and CONs from our impressions:
- PRO: Growing population base – Abundance of potential tenants
- PRO: Solid economic growth – New
- CON: Development – Creates additional competition with Value-Add
- CON: Limited Value-Add Deal-Flow – Did not find opportunities that fit for us right now
Lots of activity and opportunities to make money, but the market has become very competitive with quite a bit of new development.
We are gong to pass, for now.