Longtime Austinite Carlos Garza has recently toggled between the local rental and housing markets. He sold his Southwest Austin home last October, after living there for around a decade. Within two days of listing the property, it had received multiple offers; he ended up accepting an offer slightly above asking price within the week. "We were very pleased with the process," he told Austonia.
Since selling, Garza has rented an apartment while he decides what he'd like in his next home. Although it was a bit of sticker shock compared to what he paid to rent 10 years ago, he knows that rent is "relatively low" compared to recent years.
Since the pandemic began, Austin's housing and rental markets have taken divergent paths. Across the five-county metro, the median sales price increased nearly 20% to $365,000 year-over-year, according to the Austin Board of Realtors's latest market report, which was published Thursday. Between March and December of 2020, however, the local apartment market slumped, with both rents and absorption rates in decline compared to the previous year, according to ApartmentData.com's February report. These trends are good for sellers and renters but cause challenges for prospective buyers, who face steep competition and high prices, and landlords.
"The main reason is the bifurcation of the economy," said Dr. Luis Torres, a research economist at the Texas Real Estate Research Center at Texas A&M University.
On the up and up
The Austin housing market was strong going into the pandemic and quickly rebounded due to a number of factors: continued job creation, especially in the tech and professional services sector; a healthy rate of relocations; a millennial-heavy population, with many members starting families and looking for more space at home.
"Because of the pandemic we saw an enormous amount of families decide after 90 days living in one tiny space with no backyard, 'Oh my gosh, we need to make a change,'" ABoR President Susan Horton told Austonia.
In addition to sustained demand, the housing market has long faced low supply. This is good for sellers, like Garza, but provides challenging when they need to buy a new home in turn, prompting some to rent in the short term.
During the pandemic, this challenge has been exacerbated as potential sellers, worried about the risk of exposure to COVID and the challenge of finding a new place to move into, held off on listing their homes, pushing prices even higher.
"Despite developers building as quickly as they can throughout the region and more than 6,000 homesites projected to come online within the next six months, the overall number of lots in development is only just able to keep up with current demand," Zonda's Austin Regional Director Vaike O'Grady said in a statement Thursday. "This means that homes will continue to sell as soon as they hit the market, and prices will continue to rise steadily in the months to come."
(Austin Board of Realtors)
The success of the Austin housing market indicates that prospective homebuyers have largely been shielded from the financial impacts of the pandemic, Torres said. Demographically, this crowd typically tends to be more educated and earn higher income than renters. Since the pandemic began, they are also more likely to have had the option to work from home, which may make a move to the suburbs more appealing—both for the additional space and because there's no commute to worry about. There's also the added benefit of historically low-interest rates. As a result, he said, "People who were renting became homeowners."
The apartment market slump
The local rental market was impacted in almost the exact opposite way: its target audience was more likely to have suffered job loss as a result of the pandemic or to work in an industry that did not allow for social distancing, such as hospitality, and a glut of new construction in recent years meant that supply outpaced demand.
Unlike the housing market, which has seen record-low levels of inventory, the rental market was "saturated" with available units, Horton said.
This graphic, from ApartmentData.com's February market report, shows how rent and occupancy rates have fallen in Austin over the course of the pandemic.
This is good for tenants. "It's a great time to rent right now generally because prices are down nationally," Apartment Guide Managing Editor Brian Carberry said.
But it's tough for landlords, whose tenants may be transitioning to homeownership or in need of rental assistance, according to the Austin Apartment Association's state-of-the-industry report, which was released Feb. 1. "By most measures, single-family is outperforming multifamily, due to the pandemic-related demand for more spacious residences in suburban locations that accommodate learning and working from home," TXP President Jon Hockenyos said in the report.
The advent of COVID-19 has also led to job loss and reduced retail sales. "These loss-of-income and consumer behavior trends produced a double-whammy effect on the apartment industry, which houses many hourly-wage workers needing housing assistance," AAA President Emily Blair said in the same document.
But things could be worse, Torres said, pointing to the role stimulus checks and unemployment benefits have played in keeping the rental market from slumping even further. He also added that, as the pandemic lessens—and unemployment rates and business restrictions do the same—there will likely be a rebound. "When we start seeing all of these things, I think the apartment market will be much better," he said.
When this happens, the rental market's surplus supply will come in handy. Meanwhile, low housing inventory coupled with the likelihood that interest rates may soon begin to rise could spell a slowdown in that market, Torres said. But he added: "It's still going to be strong."
- Austin housing market broke records in 2020 despite COVID ... ›
- Austin housing market keeps heating up—but supply is too low ... ›
- Austin's housing market is hot, but buyers feel burned out - austonia ›
- Austin housing market rebounds but apartments struggle with ... ›
- Austin luxury real estate market booms in pandemic - austonia ›
- Austin housing prices continue climb despite growing pains - austonia ›
- Austin's rental market rebounds after pandemic slump - austonia ›
- How millennial homebuyers are influencing the Austin market - austonia ›
- Austin's hot housing market ups down payments, barriers - austonia ›
- Austin leads U.S. tech hubs in post-pandemic rent rebound - austonia ›
- Austin housing prices set new records in April 2021 - austonia ›
- Austin rents continue post-COVID rise thanks to homes frenzy - austonia ›
In what could be one of their least energetic showing to date, Austin FC was outperformed by home team San Jose in a 4-0 road loss late Wednesday night.
As the first team officially out of playoff contention in a loss on Saturday, the team seemed defeated from almost the moment they hit the pitch as Quakes standouts Chris Wondolowski and Javier "Chofis" Lopez scored on the team.
A tenth-place San Jose maintained a clean sheet in the match as they inch closer to a last-minute spot in playoffs.
Just as they did in their 1-0 loss Saturday, it was Austin FC who struck first in the match. Captain Alex Ring forced a save from Quakes keeper JT Marcinkowski in just the second minute of play, while star forward Sebastian Driussi followed soon after.
A little over 10 minutes later, San Jose responded with a shot of their own as Austin keeper Brad Stuver was forced into action with a diving save. But with a failing back line and a lack of energy throughout, a frustrated Stuver wouldn't be enough to stave off the home team Quakes in their four-goal triumph.
After a slow first half, San Jose star Chofis was the first to strike after sneaking past Stuver to make it 1-0 for the home team to kick off the second half.
Just five minutes later, Quakes midfielder Benjamin Kikanovic broke free with a fast-paced drive in a play that saw two Asutin FC players hit the ground to double the lead. Stuver and other players were immediately outraged in the controversial call after an apparent handball in the box.
MLS' top all-time scorer Chris Wondolowski capitalized on the slow Austin defense next, taking a pause in the box to score the third goal unmanned in the 59th minute.
Finally, Carlos Fierro clinched the win for the home team after placing a header from six yards out off of a cross and corner kick to end the match 4-0 for San Jose.
Austin head coach Josh Wolff attempted to staunch the wound with a series of subs starting at the beginning of the second half, subbing in native Austinite McKinze Gaines for Moussa Djitte and Rodney Redes for Cecilio Dominguez. But no subs were enough to push back against the 'Quakes as the team lost their second match in a row.
Austin FC has four final matches to end the season, including two remaining home matches against the Houston Dynamo at 4 p.m. on Sunday and a final match at Q2 Stadium against Sporting Kansas City at 8 p.m. on Wednesday, November 4.
85' San Jose makes it 4-0
Austin FC once again can't plug holes in the box as San Jose scores their fourth goal of the match off a set piece and header to make it 4-0 in the 85th minute. The Quakes' Carlos Fierro scores on a header from close up after a well-placed cross from Cristian Espinoza as a frustrated Stuver is unable to block the six-yard shot.
Frustrated and sluggish, Austin FC appears to have lost their chance at a win or draw in one of their worst losses by scoring margin this season.
59' Wondolowski scores for the "Quakes
Just a minute after he hits the pitch, MLS' all-time top scorer Chris Wondolowski tacks one more onto San Jose's lead as the home team leads 3-0 in the 59th minute. A beleaguered Austin leaves Wondolowski undefefended as he receives the ball in the box, pauses and scores in the bottom right corner of goal.
It's looking to be an especially bad match for Austin, who already sit at the bottom of the West. The Verde and Black continue to be outperformed in their late season road matches.
53' Austin doubles the lead
After a rough-and-tumble drive that saw two Austin FC players take a fall, San Jose's Benjamin Kikanovic shoots past Stuver to score the second goal of the match for the home team. The play drew ire from Austin FC players including Stuver, who said there was a handball in the box. Austin's defense continues to be outperformed in the match.
47' San Jose scores first
The Earthquakes finally capitalized on a sluggish Austin FC as San Jose's Javier "Chofis" Lopez snuck one past keeper Brad Stuver and a last-ditch dive from Austin's Jhohan Romana to net the first goal of the match. The goal is Lopez' 12th on the season.
40' Romana gets yellow carded
Romaña is trying to play flag football 😂 #AustinFC— Seth Davis (@sethdavis512) October 21, 2021
Austin FC's Jhohan Romana is the first to get yellow carded in the match after grabbing a jersey in the 40th minute of play. Seconds later, Austin nearly gets an opportunity as San Jose keeper JT Marcinkowski fumbles a blocked shot, but he passes the ball off before the Verde and Black can get one in off the rebound.
The Quakes repeat the move in the 41st minute as they nearly get one past Stuver, who is able to hold it down unguarded and grab a shot from Jeremy Ebobisse.
18' Stuver keeps it clean
Just like Saturday, it was Austin who struck first with a shot by Captain Alex Ring in just the second minute of play. Star newcomer Sebastian Driussi came soon after with a shot of his own, but the ball was once again kept out of goal.
Just over 10 minutes later, Austin keeper Brad Stuver got his first big test as the Quakes' Jeremy Ebobisse shot one towards the bottom left corner. In signature fashion, Stuver was able to keep a clean sheet.
Austin's "strongest lineup yet" may not have been able to finish in Saturday's loss, but they created plenty of chances. Wolff seems to have confidence in the starting XI and hasn't changed much for tonight.
Nick Lima is in for right back in Hector Jimenez's stead, while Cecilio Dominguez, Moussa Djitte and Sebastian Driussi lead up front. Center back Matt Besler remains out on concussion protocol.
Tesla's third-quarter profits were released on Wednesday afternoon and current richest-man-on-earth Elon Musk topped the charts since his high-profile transition to Austin.
Q3 held record-high deliveries for the electric vehicle manufacturer, despite chip shortages and supply chain issues. Revenue came in slightly shy of expectations but still yielded the most profitable quarter thus far for Tesla. Plus, adjusted earnings per share are also on the up and up.
"A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed," Tesla said in a statement. "We believe our supply chain, engineering and production teams have been dealing with these global challenges with ingenuity, agility and flexibility."
According to Tesla's update, the EV giant's Q3 revenue came in at $13.76 billion—a big year-over-year increase as Tesla recorded $8.77 billion in Q3 of 2020. The expectation was $13.9 billion and though the company came in just a few million lower, it was the company's ninth-straight profitable quarter.
Though earnings were a touch lower than expected, adjusted earnings per share came in at $1.86, where expected had been $1.67, and a year ago was 76 cents per share.
An accomplishment for Tesla this quarter was delivering more than 241,300 vehicles worldwide from its California factory—almost half of what the company delivered throughout all of 2020.
This Q3 update comes on the heels of Tesla's announcement that it would move its headquarters to the capital city. Additionally, the new Gigafactory in southeast Travis County is looking more complete by the day. While full-scale production isn't slated to start until 2022, the factory has already begun testing its robotic assembly line.
- Elon Musk lives in a tiny Boxabl home in Boca Chica, Texas - austonia ›
- Elon Musk, Joe Rogan and Dave Chappelle walk into Stubb's BBQ ... ›
- Elon Musk and Grimes break up - austonia ›
- Where SpaceX's Elon Musk ranks in the billionaire space race ... ›
Radhia Gleis never meant to join a cult—in fact, she didn't even know she was part of one until decades after she had joined—and she's still picking up the pieces that her departure left behind.
Although it was Buddhafield, a movement that has been called a cult by a host of ex-followers, that brought Gleis to the Hill Country, the group's Austin presence has diminished to almost nothing. After over two decades in the group, Gleis revealed it all in her first-place PenCraft award-winning book, "The Followers, 'Holy Hell' and the Disciples of Narcissistic Leaders" in which she talks about the dangers of groupthink and the impact that spending years in the Buddhafield cult had on her.
Gleis now works as a clinical nutritionist and is working on healing through her art. (radiagleis.com)
From a "well-to-do" family in California, Gleis was learning how to make cocktails for wealthy dinner guests shortly after she learned how to walk. She grew up emotionally distant from her parents and only brother; Gleis vividly remembered being called "dopey" by her father, consistently forgotten by her mother and held at knifepoint by her brother.
Needless to say, Gleis grew up without secure connections. On top of that, she grew up in the 1960s and '70s during mass cultural upheaval, the free love movement and obsession with Eastern religions.
"There were these desires to expand your thinking, expand your consciousness as opposed to the 'Leave it to Beaver' kind of paradigm," Gleis told Austonia. "There was a rebellion, a schism in the culture."
She had become interested in the idea of nirvana when she was in high school, so when a friend told her about spirituality sessions with a beautiful woman named Malila who claimed to have experienced God directly, her interest was piqued.
Her experiences with Malila threw her into the spiritual realm. Gleis met Jaime Gomez, the would-be leader of the Buddhafield cult who went by many names, in the early 1980s through a friend of Malila's in California. Gomez, a native of Venezuela, was known to often wear only eyeliner and a speedo in his prime and when Gleis met him, he was clad only in a golden tan, skin-tight jeans and a small vest.
The Shakti scam
Gomez originally began guiding members through an independent spiritual journey but flags were raised when he began to see himself as a godlike figure. (WRA Productions LLC)
Her initiation was subtle—it started as just a group of friends who followed Gomez, a young yogi with a small but growing following, to learn techniques of "The Knowing" that he possessed. Members were initiated via "shakti," a godly transfer of power that opened your third eye. Members would "pranam," or deeply bow to show respect, to God during the first four years of Gleis' time with Gomez.
The initiation started as a relationship between the individual and their "divine birthright" through God.
"Generations were trying to get Shakti from him, they were trying to get his energy," Gleis said. "He was like, 'Whatever you experience in your initiation is between you and God, it has nothing to do with me.'"
Things started to change at the next initiation when Gomez had new members pranam to him and connect to his love, not the divine love they had come seeking.
"He would say, 'Well, Radhia, some people, not you, need a living person they can touch and see and talk to, I am just being that for them,'" Gleis said. "So he considered himself now a living deity like Jesus or Krishna or Buddha."
Although she did not support the pranam to Gomez, the shift was harrowing. While Gomez was a "skilled sociopath," Gleis said, he was also her friend and she was his close adviser; he knew all of her' hopes, dreams, fears and how to keep her around.
"If you go to Disneyland, it's a fantasy, but you're willing to forgo your disbelief for the fun, for the ride," Gleis said. "But what if you don't know it's fake? What if all your friends and all your family are in on it? And the one person that you revere the most is creating the illusion?"
It would take years for Gleis to learn Gomez was secretly taking advantage of members in the group.
The domino effect
The Buddhafield waltzed into Austin from West Hollywood in the late '90s after accusations against Gomez came out, Gleis would later learn. She found out that later that multiple members alleged that Gomez sexually abused them, and it was a pattern of his to jump ship and change his name once people started speaking out.
There were a few reasons the group chose Austin: their new home had to be in a warm climate, near a body of water, full of rich culture and jobs.
Having been in the cult for over a decade, the Austin move had triggered a need to build a life outside Buddhafield for Gleis. The connections she made outside the "family" she had made for herself led her to visit the home of an injured member of Buddhafield, where she says she was greeted by two men who told her tales of Gomez's transgressions.
Tales of Gomez attempting to hypnotize male members of the group into removing their clothes, which Gomez would deny, and his penchant for using the AIDS crisis to scare members into silence came to light. It was a feat in and of itself to tell a single soul about the things the victims had experienced, let alone make formal charges.
Among the victims was Will Allen, who released the documentary "Holy Hell," made from hours of his own original footage, in 2016 to detail his experiences.
The women in the group were untouched to Gleis' knowledge and some of the victims took years to gain the courage to speak out.
"Now it was like dominoes, it was like this was our #MeToo movement. When this guy came out, now all of a sudden, I'm getting phone calls because the rumors spread," Gleis said. "It was very heartbreaking—I started hearing all these stories of what (Gomez) had done and all the secrets that all of these men had been holding, these traumas that they had been holding in for years."
That was her line in the sand—so, at 55 years old, Gleis left Buddhafield, "alone and forsaken." And she has learned a good deal about herself since then—she works as a clinical nutritionist but left all of her friends behind, with no one to fall on but herself.
It has been 15 years since her departure—15 years to ponder how she was manipulated into that place. Gleis often compares those two decades of her life to Trumpism, where Gomez had tapped into her preconceived notions and led her to believe what she wanted to believe.
As someone who grew up not knowing love, it made sense to jump headfirst into the sense of community and protection that Buddhafield offered.
"We have to be careful when we use words like 'brainwashed.' We went willingly. Jaime didn't torture us. He didn't brainwash us," Gleis said. "All he did as a narcissist—he figured out what we were all thinking about and he became that for us. When you pranam to him, which we did, then he becomes bolder. That's what a sociopath does."
Gleis details her story of what led her in and out of Buddhafield in her book, "The Followers." Gomez and certain members who are still connected to Buddhafield have moved on to Hawai'i, but Gleis remains in Austin and is currently working on a children's novella.
- Buc-ee's avoids national workers shortage with benefits - austonia ›
- Austin companies that cracked the Fortune 500, 1000 list - austonia ›
- Alex Jones goes viral yelling at lifeguards at greenbelt entrance ... ›
- How Buc-ee's became a cult favorite around the world - austonia ›