Expert Eldon Rude: Austin’s economic roll

AUSTIN – Central Texas has seen unprecedented demand in most real estate industry sectors since the recession, according to local housing market expert Eldon Rude.

However, the region’s rising home prices could slow population growth in the Austin area, as people and companies choose to remain or locate in cities where home prices are lower.

“We (in Austin) are in a really, really fortunate place in time,” said Rude, principal of 360 Real Estate Analytics, an Austin-based consulting firm. “Things are very good. A lot of people are moving to Austin, and they’ve got to live somewhere.”

Central Texas’ strong economic growth has spurred an influx of newcomers seeking opportunity — an estimated 110 people a day are moving to the Austin area, according to the U.S. Census Bureau.

Some 17,700 apartments are now under construction in 76 projects, according to Capitol Market Research, and housing starts have climbed to a pace of about 10,000 a year.  

However, Rude said the region faces challenges, including transportation woes and escalating housing prices that could slow growth.

Those concerns could prompt people and companies to re-think a move to Austin in favor of cities that are also enjoying low unemployment and job growth — but which have lower home prices. The median price of an Austin-area home has risen 28 percent since June 2009, and the average sales price is up 23 percent since then.