The Austin real estate market continues to expand with the recent infrastructure improvements, further linking North Austin, Round Rock, Cedar Park, Leander, and Pflugerville to Austin proper. These improvements are mainly toll roads that connect to the major highways -- IH35 and Loop 1 (Mopac). However, with continued growth from large employers (Dell, Freescale, AMD, Texas government, University of Texas System) and increasing house prices in the city of Austin, there continues to be demand for housing and rental properties that serve jobs in the city.

Austin has a low unemployment rate (4.4% in 2005, down from 5.5% in 2004) and a modest job growth rate of 2%. The Austin-San Marcos area is the fourth fastest growing metropolitan area from 1990 to 2000 with an average growth rate of 4.4% per year.

Because of continued migration to more urban areas, increased desire from the younger workforce to live and work in urban clusters, and a larger scale migration from the Northeast to the South and Southwestern United States, we feel that Austin home prices will continue to grow in the 5 - 15% per year range depending upon a property's location. In addition, certain areas in the Austin area are well suited for the baby boomer populations looking to retire to a warmer climate and looking for communities and amenities for a new stage in life.

The charts below illustrate some of the housing price changes in the Austin area over the past 10 - 20 years and show significant upward trends since 2001 in home values. (Source: Real Estate Center at Texas A&M University)