Texas capital

Bum Rush Texas Capital City Single Family Investors


The housing market in Austin, Texas has become notoriously tight over the past decade.

Now investors are making it even harder to buy a home, Austin NPR station KUT reported. Last year, investors bought about a third of single-family homes sold in the Austin-Round Rock metro area, according to a CoreLogic report.

That’s a big step up from the previous decade, when investors accounted for less than 20% of single-family home buyers in the area. According to CoreLogic’s definition, an investor is either a non-individual who buys a house or someone who buys three or more houses at the same time.

The move makes sense for investors, as the Austin area’s population has been growing at a steady rate – around 3% per year – for the past 10 years, while new construction has been unable to meet the need for rental housing. or for sale – a problem exacerbated by recent supply chain issues. At the same time, rents are rising faster than ever.

The combination of high rents and a limited housing supply is prompting investors to buy, renovate and keep Austin’s rental units rather than flipping them as they did in the past. A recent spike in house prices also makes a good return on investment likely. Austin is also one of the best places for the development of single-family homes for rental rather than purchase.

Institutional investors bought about 10% of Austin homes sold in 2021, according to a report cited in the article. It is not known how many of these houses were condominiums and how many belonged to the category of single-family houses, that is, houses owned in fee simple. This percentage has also increased in recent years. Until recently, institutional investors in single-family homes were most active in Atlanta, Phoenix and Tampa.

[Austin NPR station KUT] –Cindy Widner