When it comes to both realized and projected population growth supported by a diverse economy, favorable lifestyle and geographic amenities, there are few US cities that rival Austin, Texas. Between 2010-15, Austin was the 2nd fastest growing city (16%) and MSA (18.8%) in the nation. Tax incentives instituted by then Gov. Rick Perry to lure CA companies to the business-friendly state of Texas, attracted Apple Computer. Apple thus became Austin’s first big corporate fish building a 1.1 million square foot campus in north Austin to support it's 6,000 thousand employees. Apple, along with Technology giants Dell (HQ in north Austin), Samsung , IBM, Google, and Oracle (constructing a 40-acre, 550,000 square foot campus on Austin's downtown riverfront), are among the dozens of big tech employers employing over 10% of Austin’s work force of over one million people. The University of Texas (“UT”) is another major economic driver with a total enrollment approaching 50,000, a staff of 20,000, and a new medical school complex. The University possesses the nation’s largest public school endowment, and accounts for over 2 billion in economic activity for the state and city. Austin is also the Capitol seat for the Lone Star State, which accounts for another large segment of the city’s workforce and economic activity.
Though Austin’s affordability has lessened, and the city deals with infrastructure issues following its meteoric expansion, population and employment statistics continue to be favorable. Austin added 22,000 net new jobs (2.2% gain) in the 12 months ending in October 2017, making Austin the 17th fastest growing major metro year-over-year. Though Austin has fallen from the top spot of the country’s growth metrics, we remain bullish on its future, and long-term appreciation potential. Austin is attracting a young and educated workforce. It’s unique lifestyle, diverse culture and relative affordability will continue to attract businesses and positive population migration, thereby expanding household formations. Austin is forecast to grow 55% by 2030, or to a population of nearly 2.8 million. As such, we will continue to seek quality and well-located multifamily investments in the Austin MSA.