Job Growth in Tech Hubs Slowing Down

The South has the highest job growth. Florida alone has 5 of the top 10:

Have been wondering why RE in Austin is cooling while SV becomes hot as stock market rallies.
Reason is construction in Austin has not stopped while SV is plagued by low inventory.
The low inventory in SV has not only masked the decreasing demand but push up prices because of bullish stock market. The decreasing RE demand is still higher than the inventory.

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I think Chevy Chase selling at 2M is a signal we are at the top, if not already pass the top. SF price is inching down. I expect South Bay to soon follow suit.

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Looks like Seattle is #1 in tech job growth :slight_smile: That’ll increase once more buildings are built.

So maybe you are starting to realize why Texas is a bad investment, especially long term.
Lax zoning, no barriers to entry…new supply always on tap, high maintenance. .Buildings depreciate in Texas and land is infinite. …Texans build fast and often…and everyone wants the new shiney house the next subdivision away…not your 10 year old aging one

Prices of SFHs in West Lake Hills, Austin Prices are comparable to Saratoga CA 95070.

The oldest SFH for sale was built in 1958, 5001 Rollingwood Dr, West Lake hills, TX 78746 asking for $1.5 mil. 4/2.5/1 1896 sqft. At $791per sqft is comparable to Campbell CA 95008.

As for SFBA, SFHs in matured neighborhoods nearer to DT/ Job centers/ Good schools are more expensive and new development are in suburbans. Prices of SFHs in suburbans are going up in leaps and bounds despite the new development which is good as new development priced up older development and add more amenities and big retail boxes. The availability of reasonable housing support the continual inflows of people, a good thing. What I notice is prices in matured neighborhoods are appreciating faster but cap rate of new development is higher, which is a good thing since new development would become matured through time. So, best to buy new development to enjoy the earlier years of higher cap rate and then enjoy the higher appreciation in later years. Long term, I feel RE is a bad investment :joy: , in only for diversification.

Yeah but you are not buying these…You are buying bread and butter cheap rental sfhs for cash flow…A loosing battle in Texas…Most Texas investors buy multi family. .Not long ago one could get 25 caps in Dallas. …Plenty of places in Texas with higher cash flow than Austin …Personally my favorite thing about Texas is the strip clubs…Little known fact, if you show a hotel key, meaning you are tourist, they will let you in free…Now you can more fun on your next trip…lol

Stocks down again today. Interest rates up. Looking like Yellen may have popped tech bubble 2.0

No longer true in Austin. Lot of changes over the last 10 years. If this forum is still around, would share status again in 5 years time. As I said, hate RE investment long term, so don’t expect much, as a diversification, ok. Every investment instrument has its place, the goal is not always fastest appreciation and/or highest cap/ dividend rate. YMMV. Also, not interested in oil cities. Also, based on my definition, you’re behaving like a manager cum specialist, hardly an investor, too much hands-on… IMHO, any investment that depends on my close monitoring and direct involvement is a bad investment proposition.