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Mount Bonnell overlooks some of the most luxurious homes in Austin. (Laura Figi/Austonia)
Shocker—Austin’s luxury real estate market is booming but after an especially fruitful year, the capital city is joining the big leagues for high-priced homes.
According to a study comparing industry-wide sales activity done by real estate agency Compass, Austin saw a 450% increase in $10 million-plus real estate transactions from 2020-2021, placing it among the 30 highest-value markets in the U.S.
With 11 total transactions totaling $189 million, the sales volume in Austin jumped 562% since 2020, putting the city markedly higher than major cities like Philadelphia, Pennsylvania; Jersey Shore, New Jersey; Long Island, New York, and Washington D.C.
Dallas was the only other Texas city to be included on the list and nearly mirrored Austin’s luxury real estate activity but ultimately came in lower in terms of total sales volume. With 10 total transactions above $10 million from 2020-2021, Dallas sold $115 million worth of houses and saw growth of about 66-68%.
However, Dallas prevailed out of the most expensive sold Compass listing at $11.9 million, whereas Austin’s most expensive listing capped at $11.6 million.
According to local agents Dara Allen and Gary Dolch, local luxury real estate has historically been concentrated along Lake Austin but is starting to spread out into areas like downtown and the suburbs. More luxury properties in diverse areas are expected to be listed on the Multiple Listing Service than ever before, which Allen said can be attributed to work-from-home.
“The prioritization of more square footage, larger lots, luxury amenities, and privacy is sending buyers as far out as Spanish Oaks and Dripping Springs,” Allen said. “People are spending more time at home and need space for sometimes even multiple home offices. Moreover, sellers are still holding tight despite their homes being worth more than they ever have been, and buyers are coming from surprising places.”
Dolch said Austin will continue to see growth from its feeder markets: California, New York, Chicago and Florida on account of the low-interest rates and ever-growing local tech and cryptocurrency markets.
“We are forecasting that our luxury market in Austin takes another leg up with 20%+ appreciation year over year,” Dolch said. “As good as it has been here, we think we’re still in the early days with at least a five-year runway ahead of us. Especially in executive estates, waterfront, and ranch properties which make up the majority of our current $200 million-plus listing portfolio.”
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Popular
Lina Martinez with her newly adopted cat, Emmanuel, who she renamed Sullivan.
Timmy and Tommy are ready to play.
As the 2-month-old white-and-tabby brothers swat feather wands, chase toys and generally hold court inside Purr-fecto Cat Lounge, a half-dozen potential adoptive parents look on lovingly, trying to get their attention.
“This is kind of like the speed dating of cats,” said Lupita Foster, owner of Purr-fecto Cat Lounge. “I intentionally didn’t put in any tables. That’s why we call it a lounge instead of a cat café because we have these lounge areas where you can sit and relax and cuddle.”
Foster, who has owned a cleaning company, Enviromaids, for 18 years, was inspired to open Purr-fecto Cat Lounge after adopting her own cat, Romeo, from a local shelter.
“When you want to adopt a cat, you have to spend a lot of time with them to get their personality,” Foster said. “I wanted to do something to help the community and something that makes me feel good, that warms my heart. A business with a purpose. This was a perfect idea.”
Actually, a purr-fect idea.
Inspired in part by a cat lounge she visited in Los Angeles, Foster began laying the groundwork for the business in late 2021 and officially opened the doors of Purr-fecto Cat Lounge, located at 2300 S. Lamar Blvd., in July 2022. Since then, she’s worked with rescue organizations such as Fuzzy Texan Animal Rescue and Sunshine Fund Cat Rescue to facilitate nearly 100 cat adoptions.
At any given time, there are 10-15 cats living in the space, which features an ideal blend of calm, cool corners and adorably Instagrammable backdrops with phrases such as “I want to spend all my 9 lives with you.”
Lina Martinez, 32, learned about Purr-fecto Cat Lounge from a friend’s Instagram post and made an appointment to visit two days later.
“My first impression was, ‘AWW!’” Martinez said. “The kittens were to die for. I felt happy and at peace – just what I needed.”
Visitors to the cat lounge pay $15 for a 30-minute CATXperience session or $30 for a 70-minute session that is spent getting to know the personalities of each cat. Foster said the first thing she typically sees from visitors to the lounge is a smile.
“Everybody that enters the door is smiling,” she said. “And we’ve seen people who have cried because they can’t have kids and they decide to go and adopt a cat instead.”
Foster said she loves bringing in cats who might not have a chance to be adopted at traditional shelters. She told the story of one cat named Izzy, who was partially blind, who was adopted by a family that had a deaf cat at home.
“Izzy was not going to get adopted anywhere else, but she’s extremely beautiful,” she said. “If she was in a cage in a rescue and you tell people she’s blind, she was probably going to be overlooked. But visiting our space, she doesn’t seem like she’s blind. She knows her way around. She moves around perfectly.”
Although Martinez, who had been casually looking for a pet to adopt since moving to Austin nearly four years ago, was interested in a cat named Ruby that she had seen on Purr-fecto’s social media, at the lounge she instead found herself drawn to 5-month-old mixed breed Tuxedo cat.
“I thought he was a star,” she said. “He worked the room and introduced himself to everyone. When I laid down to pet Ruby, he ran from the other side of the room and cuddled with me. It was game over. He got me.”
And she, of course, got him, complete with a commemorative photo that read “My Furrever Family” the day she took him home. Although his original name was Emmanuel, she renamed him Sullivan after her favorite DJ.
“Purr-fecto is special because of the amount of effort and love they put into taking care of the cats,” Martinez said, “and finding them good homes and making possible adopters feel at home.”
Foster, who spent a recent Thursday hosting a group of teenagers in foster care at the lounge, several of whom expressed interest in working there, said the best part about her new endeavor is that her heart is always full.
“I just feel complete,” she said. “I always felt as an entrepreneur that I was missing something. I knew I accomplished a lot, but in my heart I was missing a little connection with the community. Now I’m creating connections between humans and pets and that’s amazing. I’m creating family bonds. It’s just about love, you know. And we need that.”
