Anton Kalafati is president and majority owner of B Side Construction based in California. Anton Kalafati and his crew have completed noteworthy renovations at places like CSU East Bay Hayward Preseidental Suite, SP2 Communal Bar and Restaurant in San Jose, and Mill Valley Community Center. With over 13 years' experience, Anton Kalafati discusses in the below article why there is a new home construction boom in Austin, Texas, and how it is benefiting the local economy.
Following a year of rapidly rising housing prices, market analysts have realized that the US housing market has long been suffering from a shortage of supply. With very little affordable housing available in many of the nation's most-populated areas, first-time buyers have been pushed out of the market. Yet, Austin, TX is now working to turn things around by investing in a new home construction boom says Anton Kalafati.
Austin, TX looks set to become one of America's greatest metropolises as thousands of people are moving into the city. Thanks to a massive upturn in new home builds, Austin is also attracting young first-time homeowners. Anton Kalafati explores what's driving the sudden real estate boom and discovers how it's reshaping the local population.
Why Austin (And America) Needs So Many New Homes
Anton Kalafati explains that there's no getting around the fact that the US needs more homes. Despite a steadily rising population, the 2010s saw a massive decrease in the number of new builds across the nation. This can widely be attributed to the fear of a second housing bubble following the Great Recession of 2008. Yet, with fewer homes being built, Anton Kalafati says prices have skyrocketed, pushing young first-time buyers out of the market.
Now, housing prices are roughly 40% higher than they were a year ago and rent is also on the rise. Unless new affordable houses are built to stimy these effects, Millennials may never own a home in their lifetime. Luckily, Austin is working to fix the problem explains Anton Kalafati.
Austin's Rapid Growth is Driving Real Estate Investment
For a place once considered a mid-tier city known for its progressive politics in the heart of conservative, Texas, Austin is quickly transforming into the next great American boomtown. In just a year alone, the city's population has grown nearly 3%, mirroring the same level of growth that most cities experience in a decade or more explains Anton Kalafati.
Even Elon Musk has commented that Austin will become a powerhouse city over the next 50 years and selected it as the location for his $1 billion manufacturing plant. Of course, with so much growth, the city must provide housing and the city is now undergoing a massive real estate boom discusses Anton Kalafati.
Fears of a Mini-Real Estate Bubble
Of course, Anton Kalafati explains with any market upturn, there are concerns that a bubble may form. However, analysts believe that the new home construction boom currently underway in Austin is different than the one that caused the Great Recession.
First, and most importantly, interest rates on mortgages are markedly higher than they were at the start of the 2008 financial crisis. This makes it harder for people with bad credit to secure a mortgage. If we look back on the lead-up to the 2008 crash, we find that the housing market expanded due to a rise in subprime mortgage lending explains Anton Kalafati.
Austin is a different situation. New builds are popping up across the region because of a rise in demand, not due to perceived profitability on behalf of large financial institutions. However, the boom could hit small speedbumps along the way, especially as housing prices continue to rise and population growth plateaus.
What the Future Holds for Austin's Real Estate Market
As Austin continues to grow, the real estate market will continue to heat up. Already, the city is seeing bidding wars and houses selling for well above the asking price. If you're thinking of buying a home in Austin, it's important to act now explains Anton Kalafati. Prices are only going to continue to rise as more and more people move to the city.
However, with some research and planning, you can find a great deal on a new home in Austin. Anton Kalafati recommends working with a local real estate agent who knows the market better than a corporate, national agent. Additionally, don't be afraid to purpose on the edge of the city!
As Austin continues to grow outward, you'll soon find yourself right at the heart of the next great metropolis. For single business types, several towering high rises are also under construction, offering inner-city apartment space with a horizon-spanning view.
The Bottom Line
Austin is currently undergoing one of the fastest population expansions in the United States. Thanks to the city's sudden boom, the real estate market is also growing to accommodate its newest residents. If you're thinking of buying a home in Austin, it's important to act now as prices are only going to continue to rise. However, with some research and planning, you can find a great deal on a new home in Austin according to Anton Kalafati.
