A couple of weeks ago I wrote about the strength and optimism of the multifamily residential market in the Austin/Central Texas market:
I promised to keep an eye on this and report further news. Today, this article indicates the same kind of confidence nationally:
This is a good sign for the larger residential real estate market. Not only are developers and builders recognizing stronger demand for living space, but this move indicates broader investor confidence. Barring unforeseen market disruptions, we should see meaningful growth in single family construction permits in the coming months.
In the Austin area specifically, we continue to add jobs and population, and all those people need places to live. The increased demand has begun to push rental rates higher, driving investment in new rental capacity. Next, as those new Austin-area residents get settled and build savings and job history many will qualify for mortgages and become homeowners. That trend will gain momentum as home values stabilize and begin to appreciate in the cities and states that have suffered most through the housing downturn, allowing some new Austinites to sell their homes elsewhere and purchase here.
Are we on our way back to 2006 market conditions? I hope not, but a return to real, sustainable growth will be welcomed. As I have suggested previously, I am convinced that 2011 is our year of transition, building the path to a strong 2012 and beyond.