Out-of-State Workers Set Their Sights on Austin
It seems that everyone is talking about Austin these days. From the booming housing market to the ever-growing economy, Austin is the city that is topping the charts, and it's not just the residents of Texas who are starting to notice.
The Austin Job Market
Recent data shows that Austin employers — specifically those in the burgeoning high-tech industry — are recruiting more and more out-of-state workers. According to an article published on Culture Map Austin, more than 60 percent of tech jobs that were filled in 2016 went to people who lived in other states and ended up relocating to Austin. In part, this is due to the fact that the tech companies based in Austin are willing to relocate top talent from around the United States, but it also helps that Austin is an appealing place to live all around.
Those in the tech industry, in particular, have set their sights on Austin for several reasons:
- Austin has a low cost of living compared to other high-tech markets, such as San Francisco and Seattle.
- The developing high-tech industry in Austin offers workers the salaries they are looking for, particularly when those salaries are balanced with the more affordable cost-of-living that can be found in the city. As noted in the article on Culture Map Austin, a recent Indeed report stated that the average salary for a person in the technology field in Austin is about $94,000 annually, and only 22 percent of monthly income is required for housing costs. By comparison, tech workers in San Francisco earn an average of $113,000 per year, but they have to dedicate 36 percent of their income to housing costs.
- There's always new opportunities to consider in Austin. According to Built In Austin, some of the tech companies that are currently hiring in Austin include Athena Health, Golden Frog, and Aceable.
How the Real Estate Market is Responding
The out-of-state workers aren't just impacting the tech industry and the local economy in Austin, but they also are making their mark on the housing market here and in surrounding cities like Bee Cave. Many home sellers who have listed their homes on the market in the last several months may be receiving offers from these same out-of-state workers, who are looking to relocate to the city and make it their permanent home. It's adding buyers to an already competitive market, and driving up the sale prices of homes in this community.
According to the Austin Board of Realtors, the median sales price of a home in Austin was $287,000 in March 2017. With just more than 2 months worth of inventory, the market could still easily be described as a seller's market. For local buyers who are looking to upgrade, the market is becoming significantly more competitive as jobs are continually being created and new residents are flocking to the city in droves.
While this may give a boost to the already-rising sales prices in the city, it should be noted that real estate experts predict that the market will begin to normalize throughout the coming months. As more buyers enter the market, more sellers may become motivated to list their properties, which will increase inventory and allow the market to cool down slightly.
Don't expect Austin to become obsolete, though. This city is primed and ready for big things in 2017. The real estate market is hot — and will continue to remain so, even in the event of increased stability. The economy is growing and the quality of life in Austin is high. To find out more information about what is driving this community forward and how you can make this vibrant city your home, contact us today.