Austin

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:

Stats

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

Pros/Cons

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

Our Impressions

Lots of activity and opportunities to make money, but the market has become very competitive with quite a bit of new development.

Conclusion

We are gong to pass, for now.