There are still many unknowns in our market and what may be happening in the economy in the coming months. There are millions of dollars that were disbursed to businesses to assist in employee retention through the “Paycheck Protection Program”. These funds were enough to cover a companies’ entire payroll for two months. As of this writing many of the businesses that received the funding have spent this money and more will run out of funds in coming weeks. We anticipate that many markets will suffer if the economy can’t recover.
However, Texas and more importantly Central Texas is still very strong. We have a large tech industry and government jobs that are helping to keep many people employed. The University of Texas at Austin (UT) has not decided whether or not it will open campus but appears to be moving towards a 25% capacity open and will give every student the option of online classes. This will dramatically affect the hyper-local economies surrounding UT and St. Edwards Universities which in turn will make student and faculty housing in the surrounding areas suffer greatly, at least for the short-term.
Otherwise in most parts of town and as of this writing, things are great and much better than expected. Tenants are paying rent nearly as normal and our vacant listings are moving even faster than normal this time last year. We are seeing slight dips in the outlying suburbs near Liberty Hill and Kyle. This could all be changed in a few short weeks, but we won't be able to really tell until the loan money runs out and we can see what employers keep people or what else they may do.
As a company, Stone Oak Management has done our best to retain tenants by offering payment plans where applicable and work with people that have never been in this situation before. Many good paying and hard working individuals are in a position that they have never known. Unemployed. Upper management must make some tough choices on behalf of our owners, but as always, we treat our clients’ properties as if they are our own and we treat everyone as we would want to be treated.
For all you data junkies, I have the full report that I have requested from the Austin Board of Realtors. This shows both sales and leasing data. Sales appear down, but we are still having an inventory shortage in the greater Austin area.
Additionally, I have listed a few articles with some positive news about growth in the Austin area below. These may help to further understand our strong market in Central Texas.
Lastly, we are a full-service Brokerage and our partner Matt Teifke is a Broker Associate with our firm and expert in Investment real estate. Matt holds a Master’s degree in real estate from Texas A&M. Feel free to contact him if you are considering purchasing or selling your property with us.
Jason Huval, MBA
Broker and Partner
Stone Oak Management