For anyone looking to buy a home or rent an apartment, Austin, Texas continues to be a top contender. In a recent study by WalletHub, Austin earned the No. 12 spot for the best real estate market in the country and ranked No. 3 specifically for large U.S. cities. This ranking highlights Austin as a strong market for both homebuyers and investors, solidifying its status as one of the most desirable places to live in 2024.
What Makes Austin a Top Real Estate Market?
The study evaluated over 300 U.S. cities, using 17 key metrics to determine the best real estate markets. Factors such as home price appreciation, rent-to-sale price ratios, vacancy rates, affordability, and job growth were all considered. Austin stood out thanks to its steady population growth, affordable housing compared to other large markets, and a high volume of home sales, particularly in its booming suburban areas.
According to the Austin Board of Realtors (ABoR) and Unlock MLS, the median home price in the Austin-Round Rock-San Marcos metro area is currently $450,000, while homes within Austin city limits average around $585,000. This stability, coupled with a high inventory of new apartment developments, has kept Austin’s real estate market vibrant and competitive, offering options for first-time buyers, investors, and renters alike.
Suburban Growth Drives Market Success
While Austin proper continues to thrive, much of the city’s real estate growth can be attributed to the surrounding suburbs. Areas like Williamson County have seen a surge in home sales as buyers look for more affordable options outside the city. With a growing number of residential developments and an increase in new home construction, the Austin suburbs are playing a key role in boosting the region’s real estate market.
In fact, the WalletHub study highlighted several Texas cities that are experiencing similar growth. McKinney and Frisco, suburbs of Dallas, ranked No. 1 and No. 2, respectively, on the national list of best real estate markets. These cities, like Austin, are benefiting from rapid population growth, new housing developments, and strong job markets.
A Growing Market for Renters
Austin’s real estate market isn’t just thriving for homebuyers. Developers are expected to complete over 21,500 new apartment units by the end of 2024, marking a continued rise in rental properties. For those not ready to buy, Austin’s rental market offers diverse options, from trendy downtown apartments to more affordable units in the suburbs.
The increase in rental properties also highlights Austin’s ongoing urban development. With more housing choices, renters can enjoy the perks of living in a vibrant city while exploring their options in the long-term real estate market.
Austin’s Real Estate Outlook for 2024
Austin’s position as the third best real estate market for large U.S. cities speaks to the overall health and potential of the market. The city’s population continues to grow, fueled by its tech industry boom, high quality of life, and diverse job market. With the ongoing development of new housing and apartments, Austin is well-positioned to maintain its status as a real estate hotspot in 2024 and beyond.
For potential buyers and investors, Austin’s market offers long-term stability. As WalletHub analyst Cassandra Happe pointed out, factors like job market strength, the availability of new homes, and overall quality of life are crucial considerations when evaluating a city’s real estate potential. Austin checks all these boxes, making it a smart choice for those looking to make their next big move.
Texas Real Estate: A Broader Look
While Austin is a standout, other Texas cities also ranked highly in WalletHub’s study. McKinney and Frisco dominated the national rankings thanks to their rapid growth and solid job markets. Denton, Allen, and Fort Worth also placed within the top 30, further cementing Texas as a prime location for real estate investments.
Even cities like Richardson, Carrollton, and Irving earned spots in the top 50, showcasing the state’s widespread appeal to homebuyers. Meanwhile, markets like Houston and Arlington continue to show promise, rounding out the top 100. In contrast, areas like San Antonio and Corpus Christi saw lower rankings but still offer opportunities for those looking for more affordable options in Texas.
The Bottom Line: Is Austin Right for You?
If you’re considering buying a home or investing in real estate, Austin’s ranking as the No. 3 best large real estate market in the U.S. highlights why it’s worth serious consideration. With its growing population, affordable housing options compared to other large metros, and diverse job market, Austin provides long-term value for both buyers and renters. As the city continues to expand, there’s no doubt that Austin will remain a key player in the national real estate scene.
Planning your move to Austin or looking for more insights on local real estate? Call or Text Brendan Sanford, the best realtor in Austin, today at (512) 696-0673, or email at [email protected].