Arguably the most important factor to evaluate when selecting a real estate syndication investment is the local market of the target property. The age-old axiom of Location, Location, Location has stood the test of time for good reason. Investors should target markets with growing populations and wage growth which leads to higher rent prices. Combine this with business-friendly environments and a low relative cost of living and you have a winning formula.
The market we will be exploring today is Austin, Texas
Market Overview
Austin is the capital of Texas and the 13th largest city in the United States, with a population of close to a million residents
The city was ranked the number 1 state to start a business for the third year in a row due to the booming population and business-friendly environment
Austin has a diverse economy that is led by tech giants such as Apple, IBM, Samsung, AMD, Oracle and Tesla
Since 2020, 154 companies have announced plans to relocate or expand in Austin
Austin was ranked the best place to live in the US for the third year in a row based on affordability, job prospects and quality of life
Interstate highways I-10, I-35, and SR-130 put Houston, San Antonio, and Dallas less than a three hour drive from Austin
The city also benefits from tourism with over 30 million visitors per year that flock to the city for its food, music and festivals
Key Real Estate Investment Drivers
The greater Austin metro has the fastest growing population in the US and is expected to double to 4.5 million residents by 2040
Austin rental prices have grown 9% over the past 3 years and are projected to rise further due to low inventory and high cost of purchasing a home
Rent prices are supported by the 6th fastest personal income growth in the nation at 5.8%
Costs in Austin are 2% below the national average and Texas has one of the lowest state and local tax burdens in the nation, ranking 38th among the 50 states in taxes paid per $1,000 of personal income
Austin is one of the hottest markets for startup investing with $2.2 billion being invested in 2019 alone
As we can see from the data, Austin checks many of the boxes that real estate syndication investors are looking for in a local market. Finding the correct property and sponsor are still critical components of a successful no-hassle, hands-off investment, which is where our company can help.
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