Austin Real Estate Boomed in 2019. What's Next in 2020?

An astounding view from the balcony of Shore Condominiums, Austin, TX.

According to the Austin Business Journal and Mark Sprague, who is the state director of information capital at Independence Title, the Austin market continues to thrive beyond everyone’s projections. At the end of 2019, Mark Sprague pointed out two encouraging economic developments for Austin that demonstrate just how phenomenal the economy and housing market have been. First, Austin is one of only eight cities in the nation that has seen its home prices FULLY bounce back since the 2008 recession. Second, over the past 20 years, Austin’s GDP, or gross domestic product, has seen more growth than any other major city in the United States! In other words, its a great time to own a home and earn a living in Austin, Texas.

None of this should be too surprising from the city that has added more people to its population this past ten years than any other city in the United States! Austin’s population has climbed from 1.7 million in 2010 to 2.2 million in 2018. That’s a growth percentage of 26%! And, according to Austin Business Journal, the median price of a single-family home in Austin has increased 64% from 193,520 in 2010 to 318,000 in 2019. Median family income has not kept up with the increase in home prices, however. Most families only saw a 35% increase in their income during the same time frame, causing many home buying procrastinators to get priced out of their desired markets.

If those statistics are not encouraging enough, here are some more astounding findings from the Statesman about Austin’s home market: 9,572 single-family homes sold in the city of Austin last year, totaling almost $13.2 billion total dollars in sales. This is a major increase from 2018 and a brand new record for Austin in both number of homes and total dollar amount in homes sold. In addition, this is the ninth year in a row that the sales volume and the median price both topped the previous years numbers!

And, the good news (if you’re a seller!) is that the housing market seems projected to continue its rise in 2020. With housing inventory in the city limits of Austin down to just 0.9 months in December 2019, we will soon face a housing shortage in this city without new construction and more sellers on the market!

With numbers like these, it’s easy to see why so many buyers consider a home in Austin such a good investment. If you are interested in getting in on the “growing edge” of Austin and finding an affordable home for you at the right price, contact me below! Don’t miss out on this opportunity to capitalize on Austin’s phenomenal growth phase, which will continue into 2020.

Or, if you have a home you need to sell, now is a GREAT time to get it on the market. You will most likely see high competition and multiple offers on your home, especially if you are in a favorable school district or trending area of town.

Whatever your home need, I am available to help you capitalize on this unprecedented time in Austin’s real estate history. Contact me today and let’s realize together your real estate dreams for 2020!

Music Lane Development Coming to South Congress

Music Lane is a mixed-use project developing on South Congress Avenue and will have a variety of tenants, which include retailers, restaurants and businesses. The project will cost $55 million and is located at 1009 and 1011 S. Congress Ave. Music Lane will be comprised of two three-story buildings and one four-story building, all designed by Lake Flato Architects.

Music Lane, which is named after the small street that serves as the property’s eastern border, is slated for completion in spring 2020.

The development has 163,000 square feet of space and will include 25 retail, office and restaurant tenants when fully leased. It will also have about 500 underground parking spaces.

One of the first tenants to sign with Music Lane was Soho House, a trendy, members-only social club that plans to open its first Texas location on SoCo. Soho House will include a hotel with rooftop and club spaces for members to work, eat, drink and relax.

Equinox, an upscale fitness club, has also announced plans to be a Music Lane tenant.

Other Music Lane tenants will include:

• Jewelry designer Nak Armstrong

• Manready Mercantile, an apothecary, candle and apparel store

• Tuft & Needle, specializing in premium mattresses, bedding and bedroom furniture

• Sustainable women’s clothing and accessory retailer, Reformation

• Luxury perfume retailer Le Labo

• Menswear retailer Buck Mason

• Mediterranean restaurant Aba

Music Lane; Endeavor Real Estate Group

It's Raining New Development on Rainey Street

More development plans are in the works for Rainey Street District, an area of town that will continue to rapidly transform before our eyes in the coming years. In addition to the 44 East residential development and 48 East short term condo rental development, each of which we have already written about in previous blogs, other developments coming to the Rainey Street District include 70 Rainey, 90-92 Rainey Street, the Quincy & the Travis Tower.

Let’s take a quick glance at each and see what’s in store for the Rainey Street District in the coming years:

1. 44 East- 51 stories; 322 residences. Construction to begin in 2020 and open in 2022. The Trail Foundation is partnering with the Austin Parks and Recreation Department to revitalize the Rainey Street trailhead, which is across from 44 East Ave. Intracorp (the builder of 44 East) will be contributing to that project.

2. 48 East- 33-story, 239 short term rental units. Construction began in 2019 and should open in 2021.

3. 70 Rainey-34-story condominium; residents began moving in in April 2019.

4. 90-92 Rainey Street-a 51-story mixed-use tower containing apartments (290 units) and hotel space (293 rooms) on a tract spanning 90-92 Rainey Street. Currently the Container Bar and Bungalow stand on this property—they will be incorporated into the design and construction of the building. See the rendering below for the ‘cut out” design of the building that will integrate Bungalow into the second floor.

5. The Quincy-a 30-story mixed-use tower with Class A office at 93 Red River St. Broke ground in March and will open in 2021.

6. Travis Tower-50 story tower at 80 Red River St. in the Rainey Street area downtown with a possible additional second tower. The first tower will have apartments for rent, and the second will have multifamily units for sale, hotel rooms and a ground-floor coffee shop. The site was once home to the Villas on Town Lake, a condo community that was demolished in February.

The Travis Tower (far left) with proposed additional tower, pictured to the right.

What do you think of all the potential developmental changes coming to the Rainey Street District? Will current residents get to keep their views? Will more and more Austin residents make the move to downtown? Which tower will see the best sunsets? Give us your thoughts in the comments below!

Ditch the Suburbs and Head to Downtown ATX

I think we can all agree that Austin is a beautiful city, and downtown Austin displays the character of Austin in the very heart of the city.

Downtown Austin is endearing because it is so much more than just a concrete jungle. If you think about it, downtown Austin has everything that Austinites hold dear:

1. Lots of green spaces, trails and outdoor amenities

   -The glorious Lady Bird Lake

   -The 10-mile Ann and Roy Butler Hike and Bike Trail

   -The impressive Shoal Creek Trail

   -The beautiful Waller Creek Park

   -The vibrant Republic Square

2. Live music on 6th Street and at Austin City Limits

3. Easy access to world renowned festivals such as ACL and SXSW

4. Award-winning restaurants

5. Proximity to the University of Texas—Sports, Musicals, and Concert Venues

6. A Farmer’s Market

7. One of the nation’s best new public libraries

8. A heathy dose of weird

More and more residents looking to downsize are now ditching their tired family home in the suburbs and opting to buy a luxury, full service condo in Downtown Austin. With restaurants, shopping, coffee, museums, entertainment and parks steps away from your door, you won’t have to get in your car every time you want to get a cup of coffee or see a movie. Plus, many of these luxury condos provide full service amenities like valet parking and on-site concierges without any exterior maintenance hassles. All of this allows you to spend your time doing the things you love and gives you the ability to savor the vibrant downtown lifestyle.

Downtown Austin condos come in all sizes and price ranges. Anything from the high $200k’s to the millions is typical. If you want to stay away from the louder side of Downtown, try the Warehouse District near 4th Street where you’ll find the more upscale restaurants and bars. A few of our favorite luxury buildings are The Austonian, The W Residences, and Avenue Lofts.

It’s really quite simple. Many people - both empty-nesters and millennials - are looking to simplify their lives. 

• They value the ease of a "lock & leave" lifestyle

• They can spend their spare time doing the things that they love instead of typical house chores - lawn, home repairs, etc.

• They want to be be able to travel the world without having to worry about the security and maintenance of their home

• They want to be closer to their jobs, cutting out the commute

In short, people want to take advantage of the benefits of modern life. For many, this means leaving behind last century’s model of suburban living.

Are you interested in learning more about the Downtown Austin lifestyle?

Click below to find more information and available properties!

The "Lock-and-Leave Lifestyle"

More and more Austin residents have been combing the real estate market for “Lock-and-Leave” Communities, which are usually smaller homes with amenities or automation systems that enable an on-the-go lifestyle.

World travelers, empty nesters, & busy millennials are all craving this style of home ownership, built for convenience and security. Lock-and-leave living allows people to own a home while enjoying the freedom of very few maintenance responsibilities.  It gives the homeowner the freedom to lock the house up and leave for an extended time without having to worry about the yard getting overgrown or needing water while the owner is away. The monthly HOA fees at these communities pay for the landscaping of both the front and back yards, as well as the outside water. This type of “lock-and-leave” living has always been a primary advantage of condominium ownership, but more and more detached home communities are offering lock-and-leave security and maintenance services as part of a monthly fee, which can vary depending on the size and location of the housing unit (usually averaging between $150 – $400). For example, many times for “lock-and-leave” home owners, a yard is important for a dog to run around in, but having no yard work to do on the weekends is equally important!

Here are some common features of lock-and-leave communities:

1. Publicly maintained lawns and landscape maintenance

2. Public pools, golf courses, parks & walking trails

3. Security: Gated entry and secure entrances- these communities take extra precautions to ensure that when you lock and leave, your home is safe and secure.

4. Lower energy footprint-usually lock-and-leave homes are smaller garden homes with a lower energy bill & footprint, which save you money!

For available condominium homes, check out active listings here. If you are looking for some lock-and-leave detached home communities in the greater Austin area, try Belterra Village near Dripping Springs, the Cottages at Meadow Lake in the North Austin/Round Rock area, Southpark Meadows in Southwest Austin, and Santa Rita Ranch out near Liberty Hill.

Interested in finding a lock and leave home or condo of your own? Contact me today!