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Austin 1 of 2 Texas cities where you can save for a house in under five years, new study shows

Austinites can save up for a home more quickly than most other Texas cities, according to a RentCafe study. (Flickr)

It takes an average of just over four years to save for a down payment on a home in Austin, according to a recent RentCafe study.


The average homeowner can save up for a down payment in less than five years in just two Texas metros, including Dallas and Austin. The study compared 174 U.S. metros when measuring for a two-person family looking to make a 20% down payment, factoring in average incomes, housing costs and available savings each month.

The study ranked the 64 metros where saving for a down-payment took less than 10 years. While no Texas cities were in the top 20 in the U.S., four areas made the cut.

Austin has higher starter home prices but a more flexible income when compared to other Texas metros. (RentCafe)


Austinites can save up for a house slightly slower than DFW, where a two-person family earning an average of $82,000 would take 3 years and 11 months to cash in on a house. Unlike Dallas residents, who would only be able to save 14% of their income each month, those in Austin can save 20% each month before buying a house in four years and one month.

But Austin's housing boom has driven up costs: the average home costs over $368,000 in the metro as average incomes are also higher at $92,000.

Even with housing costs nearly double that of its I-35 neighbor, Austin's higher income can get you a home twice as fast as those in San Antonio. It would take eight years and one month to save 20% for a starter home in the San Antonio metro, according to the study.

The study shows Austinites may have more disposable income than other Texas metros, with an average of 66% of income factoring into necessities. But even as incomes rise and the job market boasts better numbers than ever, Austin has caught attention nationwide as it has been reported to be one of the least affordable big cities in the country.



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With deposition and trial looming, Elon Musk has offered $44B for Twitter, again
Shutterstock

Elon Musk has proposed once again to buy Twitter for $54.20 a share.

The news that Musk is offering to carry on with the $44 billion buyout was first reported by Bloomberg. Now, a filing with the Securities and Exchange Commission shows Musk made the proposal in a letter to the tech giant on Monday.

The New York Stock Exchange temporarily halted trading in Twitter stock twice Tuesday, first because of a big price move and the second time for a news event, presumably the announcement of Musk's renewed offer.

While the per share offer price on this latest proposal remains the same as the original offer, it’s unclear if Musk has made other term changes or if Twitter would reject it. According to other reports, a deal could be reached this week.

The stock closed at $52.00/share Tuesday, indicating market uncertainty around the $54.20 offer.

After Musk informed Twitter of plans to terminate the original agreement in July, Twitter sued. A trial has been expected in Delaware Chancery Court on Oct. 17.

With the proposition of a buyout on the table again, it revives the question of whether Musk might move Twitter from San Francisco to Central Texas.

He’s done so with some of his other companies. Tesla’s headquarters in southeast Travis County had its grand opening earlier this year and tunneling business The Boring Company moved to Pflugerville. At least two other Musk companies, SpaceX and Neuralink, have a Central Texas presence without being headquartered here.

Technology journalist Nilay Patel this afternoon voiced concerns that owning Twitter and Tesla together could be problematic for Musk, as his Tesla manufacturing facilities in Germany and China are both in countries that have disputes with Twitter over content moderation and censorship.

Telsa shares fell after the Twitter news became public, before rallying to close up, at $249.44.

Austin rents nearly double in a year and are now in the top 5 nationwide
Dwellsy

While searching for a place to live, Austin renters will face monthly rates of nearly $3,000, a recent guide from rental marketplace Dwellsy shows.

The median rent in August this year was $2,930, a more than 86% increase since August 2021. That’s $820 more than the nationwide median asking rent in August and puts Austin just below the Bay Area, Boston and New York for large cities with the most expensive asking rent.

“Within this group, Austin, TX stands out for the highest increases in asking rent, which has nearly doubled since this time last year,” the study notes.

Outside of those large cities, however, others are seeing even higher rent spikes. Metro areas that ranked above Austin in one-year increases include those like Kansas City, MO with a 112% change in rent since last August and Tucson, AZ with a 124% change.

The data reflects large apartment communities, single-family homes and 2-6 unit buildings.