Despite all of the talk of a recession and a troubled economy, you would have a difficult time seeing signs of trouble if you were to visit Austin. In fact, Austin has somehow managed to go against the norm and has been finding ways to prosper while much of the nation struggles with the current state of the economy.
One area that continues to boom in the city of Austin is employment. In fact, when compared to national averages, Austin and the state of Texas are both outperforming the majority of the country. According to recent reports, the total number of nonfarm employment rose by 2.6% in Texas when comparing April 2007 to April 2008. Overall, the United States has only seen a 0.3% raise during that same period of time. In addition, the seasonally adjusted unemployment rate in the state feel .3%, with April 2007 showing 4.4% and April 2008 showing 4.1%.
The mining industry in Texas has also benefited from the higher oil prices, which has had the opposite effect on many other businesses. In fact, the mining industry was number one in the state when it came to job creation. Following mining, the business and professional services industry has also done quite well, as has the leisure and hospitality industry. Construction, education, and health services industries have also faired well throughout the state.
Austin has seen similar success when it comes to real estate. In fact, the median home price in Austin has actually gone up by 6.4%. The reason for the draw to Austin is quite easy to understand. After all, many people consider it to be one of the hippest cities in the country. Couple that with its low unemployment rates and the abundance of tech companies such as Dell, Sun Microsystems, and Apple, and there is clearly plenty of growth left in this city. In addition, despite the increase in the cost of real estate, the median home price in Austin is still less than $200,000, which means it is a very affordable city to move to and to live in.
Posted by Jim Olenbush, Broker and Owner of Cantera Real Estate, Inc.