Investing in Austin, Texas
Austin boasts an established technology sector that continues to grow as global companies expand and relocate in the area. Apple is embarking upon a $305 million, 1 million-square-foot expansion of its local operations, add- ing 3,600 jobs. Additionally, both General Motors and Visa USA are planning new information technology centers in Austin, creating hundreds of new jobs. One of the area’s technology leaders, Samsung, will spend $4 billion on facility upgrades that will underpin 2,500 construction and vendor jobs.
Supporting the metro area’s tech growth, the University of Texas is building new facilities for programs in engineering, new media and computer science. In addition to technology, the metro area is benefiting from an expansion in tourism, led by the recent addition of the U.S. Formula One Grand Prix Austin race. Both Fairmont and JW Marriott are building new luxury hotel towers in downtown Austin, furthering job gains in the leisure and hospitality sector.
As a result of gains in these and other sectors, the Austin area will see employment growth rise to 3.2% in 2013. The Austin Metropolitan Statistical Area (MSA) is surging toward full employment, more as a result of having lost relatively few jobs to start with, than as a result of a strong recovery. “Austin is among 13 of the nation’s 100 biggest labor markets to have regained all of the jobs that were lost during the recession,” according to the Austin Business Journal. “The Capital City is ranked the third most prosperous metro during that five-year span because it added 37,900 private-sector jobs.”
We also view Austin as a highly attractive apartment market because of its structural characteristics, including, but not limited to, the following:
- Population growth
- Strong Immigration
- Educated and skilled workforce
- Macroeconomic drivers
- Leading technology industry
- Vibrant live/work/play community
- Strong market fundamentals
- Stable Incomes