The population boom in Texas and Austin is obviously the key driving factor for this economy. Projections are that by 2060 there will be 80% more Texans in our great state and by 2070 the state’s population will double.
In the short term, predictions forecast: Austin will have a population of 2,317,732 by 2020, 3,077,732 by 2030, will gain 30,000 new jobs in 2014, and the unemployment rate will drop somewhere between 4.5 and 4.8%
A huge impact on Austin’s future economy will be the new medical school. Millions of square feet are being built right now all for the biotech and medical industries.
About 4,500 new apartments are sprouting up in the urban core. Last year 5,000 new units were added. In the region (which includes outlying areas of San Marcos, Kyle, Buda, etc), there are 17,000 new units being built.
Are we overbuilding? In the short term, yes, but in the long term, no. As these downtown and urban core (78704 included) units are completed, there will be competition amongst them as they all come online at the same time. Since we expect 30,000 new jobs, however, that should only be a temporary problem.
The resale market is expected to sell more units in 2014 and that this number will be between 10,000 and 11,000 units (there were about 9,500 in 2013).
A lot of the growth that we will see, in terms of new homes, will be in the outlying areas. It’s estimated that Leander alone has between 12,000 and 17,000 lots that will begin to hit the market this year.
How did 78704 fare?
This zip code has had some of the biggest gains in appreciation of any in Austin.