A decade ago, Austin, the capital of Texas often deemed a liberal oasis in a staunchly conservative state, was among the most affordable places to live. Now, according to a forecast prepared by Zillow, a real estate company that tracks affordability, the Austin metropolitan area is on track to become by year’s end the least affordable major metro region for homebuyers outside of California. It has already surpassed hot markets in Boston, Miami and New York City…
Home sale prices in the city of Austin skyrocketed to a record median of $536,000 in October, up from about $441,250 a year ago. And they have more than doubled since 2011, when the median sales price was $216,000, according to the Austin Board of REALTORS, a trade group. Rentals, too, have surged, with the average cost of an 864-square-foot apartment now $1,600.
Much of this article addresses the effects on the city and residents. The rapidly rising costs have consequences for many.
Thinking beyond this particular city, I wonder at the convergence of people, business, and real estate in the last decade in one city and region. Particular communities, including cities and suburbs, have experienced this before during boom times. Is Austin’s case unique or is it simply the latest American community to go through such growth? Austin has a unique mix of tech industry, cool culture, it is the capital of an important state and home to the flagship university in the state system, and once had cheaper housing.
At some point, the pace will slow down in Austin. This could happen because of the rising real estate values or other factors. What community and region is next? Based on what made Austin successful, I could venture some guesses. The first places that come to mind are on Richard Florida’s lists of creative class havens in The Rise of the Creative Class. Or, perhaps the tech industry gathers in a new yet unlikely location that offers similar advantages.