Last week, HBA had the Meyers group give the midyear HBA economic update. Tim Sullivan, a nationally recognized analyst gave a great overview of where Austin’s economy stands in relation to the rest of the nation.
The basics stated were;
Though Austin is smaller than booming metropolitan areas such as Denver and Seattle, it ranks fifth in the nation for the number of active subdivisions.
- The ratio of existing home sales to new homes sales is 8 to 1, which is considered well balanced. On the other end of the spectrum is New York where the ratio is 35 to 1.
- The Austin’s economy and affordability are strong in comparison to the rest of the nation’s metros.
- Building permits will rise in Austin even though land prices continue on a steep incline, contributing to higher development costs.
- Here’s a prediction that hasn’t even been suggested for years: Condo conversions are likely in the near future.
- Williamson and Hays counties will continue to post major population gains, and in the near future, the number of home sales in these counties will outstrip Travis County in the 5 county metropolitan area.
- The corridor between Austin and San Antonio will fill in dramatically, and that’s not a bad thing, Sullivan said. The two cities are very different, “but complementary,” he noted. Both cities have strong cultural distinctions and tourism appeal. Home builders would be wise to examine the opportunities to grow along that corridor.
- The complaints about traffic and water are a common problem across the nation wherever you see healthy economic growth.
Here is the Austin American Statesman’s coverage;
Thank you for your insight Mark Sprague our State Director of Information Capital!