2017 Housing Forecast

2017 Housing Forecast Predicts another Strong Year for the Central Texas Housing Market

With the recent inauguration, the new Trump administration taking shape and the Texas legislative session in full swing, many people are feeling uncertain about what’s store for 2017 and beyond. However, based on a recent housing outlook event at the JW Marriott in downtown Austin, local real estate experts still seem pretty optimistic about another strong year for the Central Texas housing market.

On January 19, the Home Builders Association of Greater Austin & the Austin Board of Realtors sponsored the 2017 Housing Forecast. The event, which is the only comprehensive housing and economic forecast event in the region, brought together about 700 industry professionals to discuss their thoughts for the future of Austin real estate. It featured speakers Eldon Rude, 360° Real Estate Analytics; Dr. Greg Hallman, senior lecturer in real estate finance at the University of Texas at Austin McCombs School of Business; and Colleen Sharp, VP and associate head of Insights Integration.

Some of the key takeaways from the event included the following:

  • Continued rising home prices – Rude expects home starts to increase in 2017 by 5-8% compared with 2016.
  • Changing consumer expectations – Consumers are increasingly using technology for ride sharing, short-term rentals and even grocery shopping – and homebuilders need to respond. For example, Sharp said, they might look to develop more homes with one-car garages as consumers shift to new models of car ownership.
  • A strong Austin job market – Although the region’s job growth has slowed, consumer confidence is still up. And Hallman noted that employment growth in Austin is still stronger than the rest of the U.S., pointing to data that shows an increase of approximately 40,000 jobs annually since 2006 and an unemployment rate of 3.5%.

Rude, Hallman and Sharp had lots more to predict about area real estate in 2017. To find out details, check out event-coverage by Community Impact and the Austin American-Statesman.

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