Austin Business Journal by Jan Buchholz, Staff Writer
Date: Wednesday, October 17, 2012, 11:14am CDT
The institute’s Emerging Trends in Real Estate Forecast ranks Austin as one of the top five markets to watch across the country.
Austin has been ranked as one of the top five markets to watch across the country by the Urban Land Institute’s Emerging Trends in Real Estate Forecast, which was released Wednesday.
Austin comes in at No. 4 behind major megalopolises such as San Francisco, New York City and San Jose, Calif. Houston logged in at No. 5.
“In 2013, Austin looks set to continue to impress individuals and attract institutional investors,” the report states. “Expansion of commercial real estate in Austin looks likely with a population increase of 2.3 percent anticipated next year, pushed by the echo boomer demographic that makes up 17.3 percent of the total population and has increased in number by over 25 percent during the past 10 years.”
Austin is considered a “leading” secondary market, according to the report, along with Charlotte and Raleigh-Durham, N.C., Nashville, Tenn. and San Jose.
The Capital City ranks No. 1 for Gross Metro Product per capita, which measures productivity based on size. Economic production, the report states, “is a driver of real estate.”
Austin ranks fifth for migration behind Raleigh, Phoenix, Tucson, Ariz., and Las Vegas.
Despite the lofty rankings, the Emerging Trends report suggests that Austin is still a volatile market and points to the city’s mediocre industrial rating.
“Great opportunities exist in Austin, but reviews are much more mixed than they were last year,” the report states.
San Francisco takes top honors for reasons that include walkability, a strong transit system and a skilled workforce.