The value of Austin’s housing market soared by nearly 40% during 2021, nearly double the national average. But what role did a certain crypto-touting, electric vehicle-building entrepreneur play in this market’s success?
What Happened: The total value of U.S. homes reached a record $38.6 trillion in 2021, a $6 trillion or 18.6% year-over-year spike according to data released by the brokerage Redfin (NASDAQ:RDFN). However, home values in the Texas capital swelled by 39.2% year-over-year to $365.9 billion, a $103 billion increase and the greatest gain among the nation’s 100 largest metropolitan areas. Redfin also noted that increase was roughly equal to the 2020 GDP of Ecuador.
Furthermore, Redfin determined that out-of-towners moving to Austin usually paid more for homes than locals. In July 2021, the typical home purchased by out-of-towners in Austin sold for $470,000, whereas the average residence acquired by locals cost $447,500.
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What Else Happened: Austin’s popularity as a residential market has grown in recent years as companies including Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Alphabet’s (NASDAQ:GOOGL) Google have invested in the area, with the goal of bringing hundreds of new jobs.
Of course, the most prominent out-of-towner to call Austin his new home is Elon Musk, whose Tesla (NASDAQ:TSLA) Gigafactory is projected to create at least 15,000 new jobs. The company created 5,000 new Austin jobs last year, the most of any company in that market.
And the Gigafactory has already inspired plans for a $500 million residential development project to be built approximately 15 minutes by car from the electric vehicle facility. The real estate development company Hines’ planned Mirador housing community will be based on a 1,400-acre parcel that will accommodate 2,500 new houses and up to 2,000 multifamily units.
The potential impact of Mirador on the local housing market remains to be seen, although Redfin noted the community closest to Mirador recorded an average $93,000 year-over-year increase in home prices for 2021.
Photo: Thierry Ehrmann / Flickr Creative Commons, adapted by Phil Hall via ConvertImage.net
