A List Partners REI fund Project update
It is of no surprise the growth in the economic standing and population of the major metro areas of Texas has proven to be continuous. The unexpected aspect is that this growth has caused a major rise in the housing prices of Austin, Texas more predominantly then the other areas. The median home price in areas like San Antonio, Dallas and Houston all are increasing, but are below or slightly above the national median of $190,000, according to the board. Austin metro, on the other hand, has a median home value of $260,000 right behind the gulf city of Galveston.
Many locals argue that the rise in the housing prices are in effect to the tech industry in Austin, but a look into the industry in Houston, disassembles this argument. Limited housing is one major factor in these rises. Many laws hinder builders from building more density such as minimum lots sizes and height limits, which are inhibiting some high rise construction. Austin has a very onerous and inept building department which adds months to the construction time line of building. This, too, increases the construction cost of delivering new homes in the City of Austin and is another factor driving up the median price for residential units available in Austin. Many areas of Austin are also held in preservation blocking all builds in that area.
Condo builds and townhomes have become prevalent throughout the Austin area. A List Partners REI fund built four luxury condos in the Crestview area of Austin two are completed, the other two are close to completion. This lot was split to accommodate these four units, which are all going to be listed from around 500K to 725K. A List Partners REI fund plans to continue building new one to four family residencies like these going forward.