Following years of surging home values, especially in coastal tech cities, 2019 will be a year of “moderation and continued transition” in the U.S. housing market—at least according to real estate website Trulia Inc. However, as many cities prepare for a return to balance in the market, a new group of cities is primed for growth. And guess what? Austin made the list.
While Trulia’s description of Austin as one of 10 U.S. cities that is “poised for takeoff” may be a few years late, our city made the list based on five key metrics:
- Job growth over the past year, as a measure of a robust economy
- Vacancy rates, as an indicator that housing supply does not exceed demand
- Good starter-home affordability, as a signal that first-time home buyers stand a chance at buying a home
- More inbound than outbound home searches on Trulia, as a gauge that more people are interested in that market than those looking to leave
- A large share of the adult population under the age of 35, which represents more potential first-time buyers
While Austin came in at number 79 in the starter home affordability category, it performed well on the rankings for its low vacancy rate and high job growth—and particularly well (fourth overall) for its population below the age of 35. Austin’s combined score landed it in the number five place in Trulia’s top 10 list, behind Colorado Springs, CO; Grand Rapids, MI; Jacksonville, FL; and Bakersfield, CA; and beating out Fresno, CA; Phoenix, AZ; Columbia, SC; El Paso, TX; and Oklahoma City, OK.
Trulia’s full report can be found here.