The July 2020 Announcement of a New Tesla Factory Continues to Make Austin Real Estate a Hot Commodity
By 2021, Tesla will be producing Cybertrucks in a brand-few facility just outside of Austin, Texas. This manufacturing plant, which will sit on about 21,000 acres, will cost roughly $1.1 billion to construct, and it will employ more than 5,000 when finished.
While it will be months before the new Tesla factory is up and running, it has already made waves in the Austin area, stimulating an already resilient real estate market.
In fact, according to the Central Texas Housing Market Report from the Austin Board of Realtors® (ABoR), the Austin real estate and housing market has thrived through the pandemic, showing remarkable year-over-year (YoY) growth, along with increasing average home prices, surging demand, and decreasing inventory.
That makes Austin an anamoly among trendy areas, like New York City and San Francisco, where COVID-19 has put a real crunch on the housing market, like so many other things.
Austin Real Estate Market in 2020 vs 2019: How It’s Changed
As the ABoR reports, over the past year:
- Austin home sales increased by nearly 22%.
- The sales dollar volume for Austin homes rose by nearly 37%, hitting just over $2.037 billion.
- The median price for Austin homes rose to $423,000, reflecting an 11% YoY increase.
- New listings rose more than 20% , and pending sales increased 21%.
- Active listings dropped by more than 32% as a result of demand for Austin housing.
- The average home for sale in Austin was on the market for less time, spending about about 44 days for sale. That’s 3 fewer days than in 2019.
- Easton Park, Whisper Valley, and Sun Chase were just some of the Austin areas that saw the greatest growth in housing development, demand, and sales. Some experts say that at least 500 homes will be built and sold in Easton Park alone this year.
Mirroring the surge multifamily residences in Austin has been the development of new transportation infrastructure, new commercial projects in and around downtown Austin, and more.
The Telsa Effect on the Austin Housing Market
The performance of the Austin real estate market certainly predated the announcement of the new Tesla factory just months ago. In fact, one of the reasons the market has been so resilient in Austin is that the area is home to several other major companies. Apple, Amazon, Dell, eBay, and IBM are just some of the heavy hitters operating out of Austin.
Still, the new Gigafactory has amplified the growth in Austin housing market. In fact, some Tesla employees are already on the hunt, with many reportedly working with local Realtors® to search for new homes in Austin. That will likely snowball, many expect, as opening day for the factory approaches.
Could Austin Real Estate Market Promote Post-COVID-19 Economic Recovery?
Yes, say some local Realtors® and industry experts. In fact, they have seen the recent performance of the Austin real estate market as a strong sign that it will drive post-COVID-19 economic recovery for the area.
Commenting on recent market performance, Romeo Manzanilla, the 2020 ABoR president, stated:
July was a very encouraging month for the Central Texas housing market. Strong home sales, combined with an increase in new listings and pending sales, are important benchmarks when analyzing the health of our market. A healthy housing marketing is vital to the overall economic recovery in the region, and with two consecutive months of positive numbers, we are growing more confident that this is sustainable and can help be the spark that gets our economy back on track.
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