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        <title>JBGoodwin REALTORS® - Austin &amp; San Antonio Real Estate Blog</title>
        <link>https://www.jbgoodwin.com/blog/tags/austin-real-estate/</link>
        <description>Stay up to date on the latest Austin, San Antonio, and Central Texas real estate trends with JBGoodwin's real estate blog.</description>
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    <guid>https://www.jbgoodwin.com/blog/austin-real-estate-mls-statistics-january-2018.html</guid>
    <link>https://www.jbgoodwin.com/blog/austin-real-estate-mls-statistics-january-2018.html</link>
        <author>macastro@jbgoodwin.com (Mary Ann Castro)</author>
        <title>Austin Real Estate MLS Statistics - January 2018</title>
    <description> <![CDATA[ 
January 2018 real estate statistics for Austin are in. It looks like Austin can expect continued real estate appreciation, despite a few dips in average home sale costs from the same month last year.


The average cost of sold homes in January dropped from $293,200 in 2017 to $289,500 this year. However, December 2017 sales were up 11 from the previous year, emphasizing the continued average growth of home values in the area.


Other highlights:




Inventory is up 3 from last January


Total units sold is up 9 from last year


Inventory is still down from 2010's supply highs




Want to learn more about the Austin real estate market? Get in touch with the JB Goodwin team today

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    <pubDate>Fri, 09 Mar 2018 11:19:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/home-inspections-101-everything-a-first-time-homebuyer-should-know.html</guid>
    <link>https://www.jbgoodwin.com/blog/home-inspections-101-everything-a-first-time-homebuyer-should-know.html</link>
        <title>Home Inspections 101: Everything A First-time Homebuyer Should Know</title>
    <description> <![CDATA[ 


You finally found the perfect Central Texas home.The house checks all your boxes: it is the right style and size, has an entertaining kitchen, and even boasts an awesome master bedroom. To make things even better, your offer was accepted by the homeowner. CongratulationsYou’re one step closer to owning your first home.The next step in your home buying journey is the home inspection. The job of a home inspector is to provide interested homebuyers an unbiased report about the utility and safety of the home they are preparing to purchase.While a home inspection is not required, it is highly recommended. A home inspector gives you the chance to understand a property through the trained scrutiny of someone whose job it is to notice problems, risks, and potential future costs.It is the home buyers responsibility to seek out and hire a home inspector. If you need help knowing who to trust, contact a JB Goodwin agent. We would be glad to give some recommendations.

1. Take your time choosing a quality inspector

Home inspectors must be certified. It shouldn’t just be a family friend who volunteered to give you an honest assessment. Home inspectors are trained to know even the subtle, hard-to-notice problems that would escape even a careful eye.Don’t make the decision on a whim. Nowadays, the internet makes it easy to vet home inspectors based on reviews.You shouldn’t expect to spend a fortune on a home inspection, but we advise also not going for the bottom of the barrel. Remember that a few dollars saved on a home inspector might mean thousands of dollars lost over the details he/she missed. Home Advisor says that the national average cost for a home inspection is $324.

2. Here’s what you’ll learn from the inspection

Online resources, like this one from Total Home Inspection, describe in detail many of the places inspectors look for potential problems within a home. The list on their website is extensive, but here is a short peak into some of the basic elements:



If there is no standing water in the yard


All railings along stairways are sturdy


Driveways and walkways appear in good condition


Walls of the home are straight and do not bow


Visible foundation is in good condition


Wood frames and trim are secure


No open electrical splices in the attic



This list leaves out a lot—and Total Home Inspection mentioned that even the list on their website is not exhaustive. Home inspectors are on the lookout for anything and everything that could cause problems for you as a homeowner.

3. Attend the inspection

Inspector reports are much easier to understand if you attend the actual inspection. Going along with your inspector will put their findings into clearer perspective.This also gives you the opportunity to ask questions or posit concerns you may have about the home. If certain elements are particularly important to you, tell the inspector. After all, they are trained to prioritize discovering certain problems. Your priorities might concern elements of the home that are less on their radar. 

4. Pay special attention to these details from the home inspection report

Once a home inspector returns to you with results, what are the most important—or potentially expensive—flaws to pay attention to?Obviously, some details are more important than others. A structural issue will cost more money to fix than replacing a window that doesn’t provide proper insulation, for example. Here are a few things to pay special attention for:



Electrical: This is the 21st century. If the home doesn’t have strong electrical, many families will be disappointed. We need to plug in everything from cell phones to televisions to refrigerators and microwaves these days. If the house can’t handle your electronics, it’s good to know. Unstable or antiquated electronics can also cause a fire, potentially putting your life and home in harm’s way. According to the NFPA, between 2010 and 2014 there were over 45,000 house fires caused by an electrical failure or malfunction.


Roof: Replacing or fixing a roof can be a huge expense. If the inspector’s report comes back with reasons to worry about the condition of the roof, this is worth serious consideration.


Property drainage: A home can look great in the dry season, only to prove to have terrible drainage that leads to flooding during the rainy season. Know the risks before the storms hit.


HVAC: Having fully-functioning heating and air conditioning is especially important in Central Texas. Summers spent without quality A/C can be grueling and you don’t want to be without heat if we have another cold-snap in the middle of winter


Mold or mildew: It isn’t always obvious when a home has endured water damage. Mold and mildew can spread where you can’t see it, getting into the air—and possibly your lungs. Prioritize your health by knowing what’s behind your walls.



We hope this helps you make the most of your next home inspection. Even if some of these issues are found by a home inspector, it doesn’t necessarily mean that you should walk away from the deal. Knowing is half the battle and a JB Goodwin REALTOR can help you negotiate the price of the home. Whether you want to find a home in Austin, San Antonio, or some other spot in Central Texas, our team is here for you.


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    <pubDate>Tue, 27 Feb 2018 14:10:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/austin-real-estate-mls-leasing-statistics-february-2018.html</guid>
    <link>https://www.jbgoodwin.com/blog/austin-real-estate-mls-leasing-statistics-february-2018.html</link>
        <author>macastro@jbgoodwin.com (Mary Ann Castro)</author>
        <title>Austin Real Estate - MLS Leasing Statistics - February 2018</title>
    <description> <![CDATA[ 

The JBGoodwin Team Does It Again...


JB Goodwin successfully gets homes leased faster than the MLS again for another month as demand remains level and the supply of properties in Austin gains nearly 500 more properties over 2017’s numbers.


Take a look at some of the key statistics below:




The total number of properties for lease is up a dramatic 20 over 2017.


The total number of leases closed however dropped three percent, which means that it could be more difficult for prospective landlords to lease their property out as quickly as the past.


There are 27 more single-family detached homes that are available for lease than there was in February 2017.


The price per square foot for apartments and other properties dropped 6 cents per square foot. Meanwhile, the price per square foot for single-family detached homes remained the same at $1.15 per square foot.




Are you a landlord that is struggling to find somebody to lease out your property? Or are you a renter that is looking for a new home? Whichever side of the fence that you sit, contact the experts at JB Goodwin to help you reach your real estate goals.



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    <pubDate>Mon, 19 Feb 2018 14:53:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/does-your-austin-home-appeal-to-the-largest-new-demographic-of-homebuyer.html</guid>
    <link>https://www.jbgoodwin.com/blog/does-your-austin-home-appeal-to-the-largest-new-demographic-of-homebuyer.html</link>
        <title>Does Your Austin Home Appeal to the Largest New Demographic of Homebuyer?</title>
    <description> <![CDATA[ 

Compared to previous generations, millennials have been cautious to enter the real estate market. Coming of age right at the most spectacular housing boom and bust in modern history—the 2008 Recession—made for a generation of observant and media-savvy homebuyers. But the tide is finally turning.


Based on recent data from Nationwide Mortgages, 66.1 of Millennials' report that they plan to buy a home in the next 5 years. Are you ready for this dynamic demographic of homebuyer?


It’s good news for the real estate world that 65.3 of millennials associate home buying with achieving the American Dream. That’s more than any other generation Millennials put a high personal value in achieving the milestone of buying a home—precisely because it is harder to do with today’s increasing education and healthcare costs.


Buying a home is a big deal to millennials—but it’s something they believe in and are eager to do when the time is right. This generation sees home ownership as a really good investment in their future.


But there are nuanced characteristics that currently distinguish millennials in the real estate market. Here’s what you should know if you hope to make your Central Texas home stand out to most millennial homebuyers:


They expect to find your home (looking good) online


Millennials are mobile researchers. With many graduating high school and college during the advent of smartphones, they use the internet to make educated purchase decisions. A whopping 99 of millennials search for homes online. As a home seller, that means your property needs to hit certain online criteria if you hope to gain much traction:




Provide clear, professional photos of your home. Photos really matter in today’s high-tech market. Finding a high-performance phone camera or borrowing a professional camera to take photos is the standard, not the extra mile. When millennials see poor quality photos, it appears lazy on the side of the homeowner. Think of your home photos like customer service: Quality is the standard and anything less is a bad experience. 


List your home on mobile-friendly websites. Millennials use their phones more than any other generation to research prospective homes. Not every website is designed for mobile devices, and a slow-loading, discombobulated website on a phone can be enough to make a millennial click away without so much as reading about the listed home. Find listing websites optimized for mobile usage. 


Include generous information about the home itself and surrounding area. Minimal information can appear as though you are hiding something under the rug. When ample information is disclosed about your home and neighborhood, that disclosure communicates honesty and transparency.




Raised on the internet, millennials avoid anything online that looks remotely like a scam. On the other hand, 76 reported that they drove by a property after being impressed by an online ad. 64 did a walkthrough of a listing they had found online.


Luxury apartments have influenced their expectations


Millennials have changed the ways apartments are designed. As a generation statistically slower to purchase their first homes, the market experienced a large growth in higher-income renters. Apartment architects kept up with the demand, providing luxurious apartments with generous amenities to satisfy this renting demographic that has more monthly income to spend on their rental space.


Now that millennials are entering the homebuying market, their expectations have been influenced by their experience of luxury apartments. This means a few things for your home:




46 want a luxury kitchen


47 say they want solar panels and efficient energy storage to save on the cost of utilities and lower their carbon footprint


75 say they want new appliances for their home


Cell reception/internet providers are important factors that millennials consider


65 of millennials report that proximity to their job is the most important factor in the home buying process




This will not be their last home


Most millennials consider home ownership a stepping stone to upgrading: 68 of millennials compared to 36 for all buyers. It makes sense that home buying is more temporary for younger homeowners who will most likely upgrade as they start families and move up in the world.


More than other generations, millennials don’t want to bear the brunt of renovations: 48 of home buyers report wanting a home that is move-in ready. This makes sense in light of the 46 of millennials who are staring down $25,000+ in student loans. With so much student loan debt, they report that saving for that first down payment is the most difficult part of the home-buying process.


Money on their minds


Millennials have been raised on short-term rental innovations like Airbnb. They know that a home can be more than just a place to rest after work—it can be a place for making some extra income.


Opportunities for investing in townhouses and homes with extra rooms that can put more money in their pockets every month is high on many millennial agendas according to the Wall Street Journal.


But millennials don’t merely want to monetize their homes; they also want to be able to work comfortably from home. This means that, in the age of freelancing, side-projects, and the gig economy, home offices are a major plus to millennials homebuyers.


Millennials trust real estate agents


Whether it is simply because they are first-time homebuyers or perhaps because they trust the experts to help when it comes to a big purchase decision—either way, 92 of millennials are buying homes with the help of a realtor. 74 of millennials actively want help and quality information in navigating the home buying process.


Whether you are in the market to buy a home in Central Texas or want to know more how to connect with millennial homebuyers, a JB Goodwin real estate agent is here to help. Contact one of our agents today to put your San Antonio or Austin home on the market.
 ]]> </description>
    <pubDate>Thu, 08 Feb 2018 15:38:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/austin-real-estate-mls-leasing-statistics-january-2018.html</guid>
    <link>https://www.jbgoodwin.com/blog/austin-real-estate-mls-leasing-statistics-january-2018.html</link>
        <author>macastro@jbgoodwin.com (Mary Ann Castro)</author>
        <title>Austin Real Estate &amp; MLS Leasing Statistics - January 2018</title>
    <description> <![CDATA[ 



2018 has started off with a bang for property leases in Austin with the total number of available properties rising, largely due to an almost insatiable demand from the market.


The properties that are being leased in December 2017 are larger compared to those available in December 2016, which has led the overall price per square foot to decline slightly.


That shouldn't come as a surprise, however. The number of new construction apartments that were available at the tail-end of 2017 was at a low not seen since 2013 but the number of single-family homes for rent in Austin had grown by 19.


JB Goodwin's leasing specialists were strong again, with the average listing renting out 2 days faster than the MLS median. Take a look at the full leasing statistics below and contact JB Goodwin if you're looking for a lease in Austin or to lease your property quickly in Austin.

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    <pubDate>Tue, 16 Jan 2018 11:45:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/austin-real-estate-mls-leasing-statistics-december-2017.html</guid>
    <link>https://www.jbgoodwin.com/blog/austin-real-estate-mls-leasing-statistics-december-2017.html</link>
        <author>macastro@jbgoodwin.com (Mary Ann Castro)</author>
        <title>Austin Real Estate &amp; MLS Leasing Statistics - December 2017</title>
    <description> <![CDATA[ 
Well, December 2017 was another wild ride according to the Austin Leasing Statistics.


Between June 2013 and June 2017, the number of apartments that are occupied has dropped four percent exactly. But this is almost definitely because of additional supply coming on to the market.


In fact, between 2016 and 2017, the market saw 600 more units become available for lease, which must have been like music to those searching for a lease as their number grew by a whopping 9, which was more than double of 2016’s numbers. The trend for those who listed their leasehold property with JB Goodwin REALTORS continued too, with a JB Goodwin property being occupied and closed four days faster than the average property on the MLS.


See more of the Austin Leasing Statistics for December below and contact the experts at JB Goodwin when you want to lease your property quickly.

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    <pubDate>Fri, 22 Dec 2017 11:45:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/why-texas-is-so-attractive-for-inter-state-migration.html</guid>
    <link>https://www.jbgoodwin.com/blog/why-texas-is-so-attractive-for-inter-state-migration.html</link>
        <title>Why Texas is so Attractive for Inter-State Migration</title>
    <description> <![CDATA[ 

More people are moving to Texas than any other state in the country. According to U.S. Census data, Texas added more than 6 million people from 2000 to 2010. Overwhelmingly, net domestic migrants are moving to Texas from California, but as Jeff Salamon points out, Californians are not more likely to move to Texas than other inter-state migrants—since the population of California is so large, there are simply more Californians coming in than say, Louisianans or South Dakotans. Growth is strong across the largest metropolitan areas in Texas, making these large areas highly attractive to migrants from all over the United States. Americans are moving to Texas.


But why are people relocating to Texas from other states?


According to a Fiscal Notes blog on the Texas Comptroller website, “According to the Tax Foundation, Texas has the nation’s fifth-lowest state and local tax burden, and recently Chief Executive Magazine named Texas the ‘Best State for Business’ for the 13th year in a row.” CEOs see Texas as a top location to host their businesses.


In Texas, growth is strong and constant, a security which further boosts our economy.


In addition to strong favor among top executives, Texas has no state income tax—certainly a boon for tax-burdened residents of other states. In their blog, Kevin McPherson and Bruce Wright also add that Texas’ population has been growing at twice the rate of the US for the past century based on decennial census rates, a trend that continues. As they note, “In the 2010-2016 period, Texas led all states in net domestic migration, with nearly 867,000 new residents.”


What is it about Texas that’s so appealing?


McPherson and Wright note that Texas is distinguished for its “natural resources and central location in the country, adjacent to the sea and on a national border,” that “have helped create and sustain competitive advantages in transportation, energy, wholesale and retail trade and more.” Residents of other states are drawn to Texas for myriad reasons, but most notably because Texas has historically been geographically situated for success, job growth, and friendly income tax policies that have drawn business growth and relocation. “[By] August 2017, Texas added more jobs (nearly 299,000) than any other state. Recent arrivals include the North American headquarters of Toyota and Kubota Tractor, both formerly based in California. In 2017, Site Selection magazine awarded Texas its Governor’s Cup, citing 642 projects expanding or creating new corporate facilities in the state.”


Relocating to Austin or Relocating to San Antonio


According to a report released by the Texas Association of Realtors, Bexar County comes in at 2 for the largest inflow of people from out-of-state, followed by Travis County at 6. First on the list (by a whopping margin) is Harris County, which boasts Houston. Relocating to Austin or San Antonio is popular for many types of people, but the breakdown by city is particularly interesting: Among out-of-state migrants to Austin – Round Rock metropolitan area, the largest demographics (in order of magnitude) were from the metro areas of Los Angeles, New York City, Chicago, Washington D.C., and Phoenix. For the San Antonio metropolitan area, out-of-state migrants hailed from the metro areas of Los Angeles, Washington D.C., Phoenix, Chicago, and lastly New York City. This data reflects many things, but most notably, it shows the connection of these large Texas metropolises to many of the largest and economically robust cities in America.


The flow between these cities show the clout that both Austin and San Antonio hold for job seekers relocating to Central Texas.


Strong job growth, low unemployment, a favorable tax climate, the influx of new headquarters, including perhaps the second Amazon headquarters in Austin. All this without mentioning the great culture, food scene, and natural attractions of Central Texas. From beautiful State Parks for family camping to a host of world-class museums, to a thriving food truck scene with every kind of cuisine imaginable, Central Texas is a family-friendly place to live.


Relocating to Austin or San Antonio has never been more appealing Are you looking to relocate to Central Texas? If so, reach out to a JB Goodwin agent today. We’re here to help answer your questions, locate fantastic properties, and work with you to find the best choice for you in Central Texas. Reach out today
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    <pubDate>Fri, 08 Dec 2017 15:43:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/5-affordable-neighborhoods-for-first-time-homebuyers-in.html</guid>
    <link>https://www.jbgoodwin.com/blog/5-affordable-neighborhoods-for-first-time-homebuyers-in.html</link>
        <title>5 Affordable Neighborhoods For First-Time Homebuyers In Austin</title>
    <description> <![CDATA[ 

Austin has grown into a sprawling, innovative place. It is a magnet for many young people wanting to jumpstart their careers, raise their kids in a healthy and fun place, and foster an enjoyable lifestyle in one of America’s most popular cities.


With a thriving job market, regular accolades from top media outlets across the country, and rich culture and cuisine, Austin attracts new residents every day from across the country. As some have put it, Austin is where young people go to retire.


Among the many praises Austin receives, it has been recognized as a choice city to invest in real estate. It turns out that year-round temperate weather, great academic institutions, and local incentives for business development can really attract many people ready to stay for the long run. Real estate, in other words, has boomed.


Austin’s fame has resulted in a quick rise in real estate costs. While this is delightful to hear for those who already own homes in the area, families wanting to move to Austin may worry they can’t afford the appreciated real estate costs.


It’s true that the city has become an increasingly challenging place for first-time homebuyers to find affordable housing. But neighborhoods still exist with opportunities for lower-budget families to lay claim to a beautiful home and property all their own without breaking the bank.


If you need help finding an Austin home within your budget, a JB Goodwin agent will be happy to work with you. In the meantime, here are 5 neighborhoods in Austin where you might find an affordable home. All data comes from real estate purchasing data published by Curbed Austin.


East Riverside-Oltorf


Situated near Lady Bird Lake, the East Riverside-Oltorf area is convenient for its lower-cost proximity to downtown Austin. The area offers easy-access to a nearby HEB, as well as several tasty restaurants and nearby parks. For students, Austin Community College offers one of its main campuses in this area.


East Riverside-Oltorf was the most affordable area on Curbed Austin’s list, which is based on houses purchased during the final quarter of 2016. In that time, the East Riverside-Oltorf area had houses selling from between $82,500 – $210,000. To find homes in Austin for less than $100,000 is an increasingly difficult feat, but East Riverside-Oltorf proves there are still deals to be found.


Rosedale


Almost in the exact opposite corner of Austin, Rosedale is another affordable community. Located in the Northwest side of the city, it is situated near the University of Texas campus. This location means ample restaurants, grocery stores, and coffee shops within walking or short driving distance of your home.


There is plenty to enjoy for those who love to stay active. Tennis courts, a pool, and playgrounds are available in Ramsey Park, which is in the very heart of Rosedale.


Regarding the numbers, houses were sold from between $169,999 and $639,900 during the final quarter of 2016. Don’t worry, that’s the largest margin on our list.


MLK-183


Back to the East, MLK-183 is a neighborhood that’s less connected to the bustle of Austin-central. This area is a quieter side of the city that many enjoy. But even if you escape some of the busyness of Austin, MLK-183 isn’t an escape from the local grocery stores or delicious cuisine. There’s a lot to explore nearby.


Many first-time homebuyers in Austin prefer not to purchase a home near the buzz of the city, but are still looking for a home situated near Austin’s awesome jobs, schools, and entertainment. For these families, MLK-183 may be the perfect fit. With only a short drive to Central Austin, you can enjoy less traffic near your home but only have to make a short commute when you’re ready for a night on the town.


Since this neighborhood is on our list, it’s more affordable as well The housing margin in this area was between $185,000 and $349,000.


Zilker


Zilker is another neighborhood near Lady Bird Lake, except it is further West than East Riverside-Oltorf. Zilker is a famous part of Austin that many know for Zilker Park, which is the popular location that annually hosts several famous Austin events, including Austin City Limits.


Zilker runs beside South Lamar, which is an active place for many Austinites. With bars, eclectic stores, coffee shops, and restaurants, families living in the Zilker neighborhood will have no problem participating in local Austin fun.


Here are the numbers: $199,000 – $649,000.


Central East


Central East is exactly where it sounds. I35 separates downtown Austin from the neighborhoods and businesses located in Central East. This side of I35 is popular for several entertaining bars like Native Hostel, Lazarus Brewery, and Brew and Brew.


The homes in this area sold between $209,000 to $499,000. For a place within such easy walking distance of downtown Austin, this neighborhood is prime real estate.


Now that you know about some of the most affordable neighborhoods for first-time homebuyers in Austin, visit JB Goodwin’s housing map to learn even more You can browse listings based on their location to find the home that’s best for you. For more help, contact a JB Goodwin agent. We’ll be happy to work with you to provide a smooth home buying experience.
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    <pubDate>Fri, 24 Nov 2017 12:18:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/its-all-going-up-austin-leasing-stats-for-november-2017.html</guid>
    <link>https://www.jbgoodwin.com/blog/its-all-going-up-austin-leasing-stats-for-november-2017.html</link>
        <author>macastro@jbgoodwin.com (Mary Ann Castro)</author>
        <title>It's All Going Up Austin Leasing Stats for November 2017</title>
    <description> <![CDATA[ 
Austin Leasing Statistics


November 2017



Despite demand more than doubling between 2016 and 2017, the base price for a lease in Austin has remained relatively flat, which is great for both renters and landlords. Since 2013 the rate of apartment occupancy has been on a steady decrease, which is a trend that continued in 2017. That being said, landlords can expect that listing their apartment for lease with JB Goodwin means that their property has the greatest opportunity to be occupied.






Demand has risen 8.5 in 2017


Price has remained steady for 2017


JB Goodwin listings have been on the market 5 days less than the MLS average


3,000 fewer apartments between 2016 and 2017 (to date)






Are you a landlord looking to have your rental property listed and occupied quickly? If so, contact the professionals at JB Goodwin. 
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    <pubDate>Tue, 14 Nov 2017 09:12:00 -0600</pubDate>
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    <guid>https://www.jbgoodwin.com/blog/wealthy-austinites-are-choosing-to-rent-instead-of-buy.html</guid>
    <link>https://www.jbgoodwin.com/blog/wealthy-austinites-are-choosing-to-rent-instead-of-buy.html</link>
        <title>Why Wealthy Austinites Are Choosing to Rent Instead of Buy</title>
    <description> <![CDATA[ 



A peculiar housing trend has emerged in Austin and many other cities across the United States in the last few years. The trend disrupts what many thought was an inseparable correlation: high-income families prefer buying homes instead of paying rent. The vast majority of affluent families, until lately, were homeowners. As soon as they had the means to begin building equity in their own home, these individuals took the real estate plunge into home ownership.


But lately, this eons-old trend has diminished substantially. According to data released by Rent Cafe, the trend for high-income households to rent is on the rise.


The number of high-income households who choose to rent has increased by a whopping 217 from 2005 to 2015 across the United States. Conversely, this same “high-income” bracket, which is defined as households who earn $150K or more a year, only increased in homeownership by 82.


The top cities for massive increases in high-income renters


According to Rent Cafe’s 2014-2015 study, these are the cities where most of these high-income renters reside:




Fort Worth


Portland


Memphis


Phoenix


Chicago


San Francisco


San Jose


Austin


Charlotte


Detroit




At 8, the data for Austin shows a 31 increase in the number of high-income renters, as opposed to the 14 increase in the number of high-income homeowners. From our own data, JB Goodwin found that in August 2017 rent was up 7 in Austin over the same month last year.


Every year since 2009 the largest year-to-year increase in renters has consistently been in the top income bracket. The affluent are choosing to rent and not buy. But why?


What is a ‘Lifestyle Renter’?


Many in the real estate world are trying to understand this phenomenon. Some point to heavy debt among Millennials. Young professionals may continue signing annual leases as a way of prioritizing their income toward paying off college or credit card debt.


Others posit that the high-income renters are a response to the Great Recession. Even after almost a decade, some high-income families may still not be ready to trust real estate as a safe investment.


In the end, the reasons change from person to person. But, one thing is clear: choosing rent over mortgage has resulted in a lifestyle choice.


It’s a trend that’s proliferated in large cities. And, as is the manner of supply and demand, developers are changing the way they design apartments and multi-family homes.This new wave of high-income renters are changing the way investors and developers build properties.


The rise of luxurious apartments


The market is responding with confidence to this growing demographic of affluent renters:


“A closer look at the data reveals that in 2015, 75 of all large multi-family rental developments completed were high-end rentals. The ratio of high-end to total apartments completed increased by a staggering 63 from 2012.”


Developers are dead-set on building for rich renters, which may come at a cost. If only 1 in 4 new apartment complexes across the US is being built for mid-to-low income renters, then it is clear that the availability of affordable housing is definitely in question. According to this RentCafe data cited above regarding luxury development, in Austin alone, 92 of apartment buildings that went up in 2015 can be classified as luxury living.


But Austin renters remain less burdened than in many other major cities across the United States. According to ApartmentList, 47.9 of Austin-area renters are cost burdened, just under the national average of 50.6. This means that renters in Southern California and South Florida are typically more rent-burdened than in the Mid-South.


To put that in perspective, conventional wisdom has it that rent should comprise a maximum of 30 of your income. From 30-50 of income, renters can be considered moderately burdened, with anything above 50 regarded as severely burdened. Lifestyle renters don’t seem to heed the 30 rule when making choices about where to live.


At the end of the day, Austin’s growing population of high-income renters has resulted in the creation of immaculate apartments throughout the city. Residents enjoy short work commutes, luxury living, and many of the amenities that have become custom-build: weight rooms, swimming pools, full kitchens, and modern designs. We may not know all the reasons this renting trend began, but momentum alludes to its continuation in the coming years.


Interested in a luxury condo? Check out our list of top properties. Looking for a lifestyle change? A JB Goodwin agent can help you navigate the difficult decision of whether to rent or buy. Contact us--we’re here to help. 
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    <pubDate>Tue, 07 Nov 2017 16:05:00 -0600</pubDate>
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