Is Austin a magnetic city? A Look into the 2024 Real Estate Market.
In the final installment of my series, I'll explore a compelling reason why Austin's real estate market in 2024 might not follow the 2023 trend. This discussion centers around Austin's emergence as a "magnetic city" in the U.S. economy.
Austin as an Economic Magnet
What do I mean, “magnetic city?” Mega economic magnets attract major corporations and companies. Such corporations and companies, in turn, not only employ a sizable workforce; they also attract smaller companies and entrepreneurs. Think of the sun with orbiting planets accompanied by rotating moons.
Currently, four massive magnets reside in Austin.
Texas State Capitol: a business congenial administration.
The University of Texas: a major research hub for the U.S. Army Futures Command.
Tesla: A leader in electric vehicles and sustainable energy.
Samsung: A global giant in electronics and technology.
Williamson County's Economic Surge
In my previous blog, I delved into some of the details. Now, allow me to emphasize the current magnetic draw revealed by recent announcements in Williamson County alone.
Samsung is currently constructing a 6 million square feet fabrication plant projected to create 1,800 permanent jobs in Taylor, northeast of Austin. In October, Taylor’s City Council approved a task force as part of its planning efforts to provide services for “fabrication unit 2” with approximately 2.7 million additional square feet.
Hutto's Rapid Development
Hutto, Texas (located between Taylor and Austin/Round Rock), continues to add land to its 1,400-acre Megasite. The city is not only a safe place to live, it has approved two major data centers, a 188-acre TechCenter, and a 200,000-square-foot warehouse operated by Project Strat3, a logistics provider that supports freight and supply-chain operations for Samsung and other regional semiconductor companies. The city also announced the beginning of what the Austin Business Journal called a “Waterfall of projects” slated for 2024.
Infrastructure Developments:
Between Taylor and Hutto, 750 acres are currently under construction. The project? Railroad lines and auto-ramps developed by McAlister Assets and RCR Rail Pak Development Co. The purpose? To import raw materials for increased construction and to export Tesla automobiles.
Tech and Manufacturing Expansions:
Recently, ZT Systems announced expansion of its Georgetown campus. The company manufactures equipment used for cloud computing and AI systems. By purchasing the 435,000-square-foot building in the north end of the city, the company projects employment swelling to 1,500 by the end of the year.
Georgetown's Industrial Expansion
If you’re wondering, “is Georgetown, Texas is a good place to live" from on economic stand point? The answer is, yes! The Georgetown-based domestic semiconductor company, Schunk Xycarb Technology announced development of a 140,000-square-foot facility and will break ground by the end of the year. “SXT’s expansion is yet another example of what is described as the ‘Samsung effect,’ referring to the expedited arrival of support companies from around the world.
Vehicle parts manufacturer US Farathane Corp., announced on February 6, it has leased a 260,000-square-foot building at GTX Logistics Park in Georgetown. The Detroit-based company provides interior/exterior molding products for car makers including Tesla.
Are there more? Yes. But these are the major movers in terms of two considerations: 1) influential players poised to drive more economic growth and, 2) immediate sourcing of well-paying jobs.
If you are looking to purchase a home in the Austin, Texas area in 2024, please reach out to Ivy Stanton—one of Austins top rated agents in the area.