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Mentor
Competitive and expensive
Some neighborhoods (crestview) lots of spec houses for sale, not a lot of sales happening at all, and prices are falling.
I flew out to look around at real estate without knowing much about Austin roughly 6 months ago. It has the ability to be a good long term play with the number of employers in the area. It’s not clear if property taxes will go up or down in Austin. They were kinda high. Inventory has been increasing and prices have been declining. I’m curious if investors have been pulling out. I see rentals sitting, then the properties are listed when they can’t get their rent price.
Austin has some of the highest property taxes in the State and in the entire Country.
With property values sky rocketing, and rates staying flat, the total tax has increased.
That alone has changed the calculation for many investors, and they are starting to see their monthly cash flow plummet.
Long term can be a good play but property taxes need to come down.
Depends on where specifically you’re looking in Austin. There’s some neighborhoods that are outrageous and there’s some areas where there are still deals to be had - it totally depends on if you’re willing to look more in the surrounding city suburbs. New construction is everywhere and they are still offering insane incentives.
On this topic, I recently noticed a 73% vacancy rate for Airbnb’s in Austin and there are thousands. Thats absolutely terrible for Airbnb hosts. I’m at 43% vacancy in my area and it’s saturated. If the Airbnb’s have to sell more inventory. Better times may be ahead. I don’t have the historical vacancy rates, but there are way too many short term rentals in this market currently. Austin doesn’t seem like a seasonal destination, so this may continue.
Real Estate there is a falling knife. Property taxes are out of control and too many Mom- Pop investors.