Grant Cardone Says Austin Real Estate Market Correction Presents '10x Opportunity' For Investors

view original post

Loading…
Loading…

With rent for multifamily properties in Austin, Texas, falling 6.2% from last year, real estate mogul Grant Cardone has declared the city is undergoing a real estate correction.

In an April 30 post on X, Cardone said the city faces an oversupply challenge, with 18.9% of apartments either under construction or in the lease-up phase.

“The real estate correction is underway, and it will create a 10x opportunity for long-term investors,” Cardone posted.

Still, there are pockets of Austin that have demonstrated notable resilience and growth. Lake Travis and far North Austin, for example, experienced a 20 basis-point increase, reaching 95.8% occupancy — the highest in the market.

Don’t Miss:

In November, Cardone told Moneywise he wouldn’t touch the Austin real estate market because of the glut of available apartments.

“Austin, Texas, is one of the worst markets to be in right now,” he said at the time. “Of all the markets in America, it’s probably the most overbuilt.”

Cheryl Higley, managing director of debt and equity for Northmarq’s Austin office, recently told REjournals that the Austin multifamily sector is experiencing oversupply driven largely by construction in recent years.

“This oversupply has led to vacancy rates reaching a 20-year high. However, there are indications that the market will gradually balance out in the long run,” Higley said.

Start generating passive income through real estate

Check out these featured investments from Benzinga’s Real Estate Offerings Screener.

Trending:

Loading…
Loading…

Multifamily developers are chasing Austin’s booming population of young adults aged 20 to 34, an age group that’s expected to grow 1.8% this year.  

“Given that this age group is more inclined towards renting rather than homeownership, the continued influx of young adults into the city, in addition to the expected drop-off in new units, suggests a more balanced multifamily market in the long run,” Higley said.

The age group is likely drawn to the city not just for its hip vibe and cool music scene but also for its status as a top tech hub with high-paying jobs.

Last year, Austin ranked among the top targets for commercial real estate investment, taking the No. 2 spot for the second consecutive year in CBRE’s 2023 U.S. Investor Intentions survey. Its job and office rent growth placed the city second among North America’s 30 hottest tech hubs.

Read Next:

Image Credit: YouTube

Loading…
Loading…

Market News and Data brought to you by Benzinga APIs