Local Economist Angelos Angelou Predicts Optimistic 3-year Forecast
Austin’s economy is expected to remain strong for the next 3 years according to local economist Angelos Angelou. In his 2017 economic forecast, Angelou outlines why Austin is poised for future growth and the challenges it must overcome to remain the fastest growing metro area in US until 2040.
- Austin’s economy is expected to grow 3% year-over-year which is slower than previous years. While some hear the words “slow” and think “weak,” Angelou reassures that we are in fact just cooling off from an unsustainable growth rate, and 3% is actually very robust and sustainable.
- Hot labor market! The forecast for jobs remains positive.
- Austin’s median home price climbed by 7.2% to $284,000
- Austin’s housing market is not overheated – it’s imbalanced. The current supply of 13,000 units per year on average has not kept up with demand of 15,000 new units per year.
- Austin is the 7th worst city in the country for traffic congestion. Consistent investment in the infrastructure is required or it will just keep getting worse.
- Entrepreneurship is driving the market, in addition to the tech sector and what Angelou calls “the festival economy”
- Tourism is the best source of revenue for our local economy since it doesn’t increase traffic congestion or overfill our schools.
- Austin is expected to be the fastest growing metro area in US until 2040. Estimated population is expected to reach 4 million!
- Stay updated with Angelou’s free newsletter.
Challenges to Austin’s Growth
In his economic forecast, Angelou explains that traffic congestion and affordability will continue to challenge Austin. Several times in his presentation, Angelou applauded the mayor’s decision to offer more affordable housing solutions for musicians and artists. When housing prices increase substantially as they have done in the past and Austin gets too expensive for those with low paying jobs, they start to move elsewhere out of the urban core to surrounding cities, threatening our identity as the ‘Live Music Capital of the World.’ Learn more about how the mayor is helping musicians stay in Austin here.
What Does Normalization Really Mean?
Austin will see continued growth in jobs, population and housing markets but not at the same rates we’ve seen the last 5 years. While some sources have stated that normalization indicates a weakening housing market, Angelou explains that 3% year-over-year growth rate is far from weak.
Angelou’s Final Word: Buy Now
Now is the best time to buy as housing prices are expected to continue to rise and you have more buying power because of low interest rates/lower mortgage payments. If you’re considering buying your first home, next home or an investment property, now is the time.
Ready to Make the Move?
Let us know if you would like to learn more about how to invest in Austin real estate. We would love to help you make the move!
- Austin Named #1 Best Place to Live in U.S. 2017
- 4 Reasons to Buy in Austin in 2017
- Austin Named 2nd Best City to Move to in U.S. News Rankings 2016