Residential homes for sale in the Houston and Austin metro areas, and land markets with rural properties around the cities of Brenham and Burton (Washington county), LaGrange (Fayette county), Bastrop and Smithville (Bastrop county), Columbus (Austin county) and Giddings (Lee County) never saw the run up in values the rest of the country experienced. So when the recession hit, the impact on them was not as hard.
Texas’s job creation, continued good press, lack of development construction, and lack of funding for new communities have all helped the local real estate markets, land sales in particular. Thanks to demand for well-located class ‘A’ communities, with homes for sale and rental, Texas’s real estate market as of 2012 continued to gain in overall occupancy and absorption, and Houston and Austin especially began to see a number of new locations for ‘home grown infill’ concepts.
In fact, cities within an hour’s drive east of Austin, such as Bastrop, Giddings, Elgin and Manor are beginning to experience shortages in homes for sale, especially rental properties. The Bastrop wildfires of 2011 have no doubt have impacted the housing market in and around Bastrop and Smithville areas, which are seeing new construction at a record pace.
While home builders strive to keep up with demand, investors in these smaller cities are building multi-family properties as rates keep rising to record highs for rental units. Bedroom cities west of Houston, including Brenham, Burton, Columbus and LaGrange are experiencing similar growth and the shortages of both homes for sale and rental properties that accompany it.
This is good news for the US real estate market, and especially for the Texas economy.