People who have lived in Austin all their lives may wonder why anyone would want to leave. Austin is an exciting city, with high economic growth leading to a constant state of evolution. There is always something new to try, and while other cities and states have their allure, they’re best for occasional visits.
It is unsurprising that many millennials are moving to Austin. However, there is also a fairly decent flow of young Austin natives moving on to Houston. Why should this be the case?
To understand this movement, we’ll get into the ins-and-outs of the Texas rental market in 2022. Young people have to consider what they can afford to rent. While the average cost of renters insurance in Texas is fairly low, there are other associated expenses that add up. The cost of rent therefore has a lot to do with where young people are choosing to live.
Real Estate in Austin
If you’re looking to buy property in Austin, you’re going to face an uphill battle. Not only is housing extremely expensive – the median price for a single-family home is $550,000 – but houses also stay on the market for barely any time. On average, a home in Austin is on the market for just fifteen days!
As a renter, life is not so simple either. While you will more easily find a place to live, paying the rent is going to be your biggest issue. Rent in Austin is higher than all but twenty other cities in the US. A two-bedroom apartment will likely cost you more than $2,000.
This in itself is a reason for young people to leave Austin. If they can’t afford to rent, they need to move somewhere that they can. But are things better in Houston?
Real Estate in Houston
Real estate in Houston is getting snapped up very quickly. Properties stay on the market for twenty-nine days on average, which is still significantly longer than in Austin. Housing is also a lot cheaper than it is in Austin, with the median price for a single-family home at around $314,000.
What about renters? The average rent for a two-bedroom apartment comes to around $1,500 a month. It is a significant drop from the $2,000 you’d be paying in Austin.
Nonetheless, the cost of rent only paints a part of the picture. It does not tell us how affordable it is. This is why it is important to get into the economic prospects in both Austin and Houston. As with other expensive US cities, the cost of living is offset by high incomes.
Business in Texas
Traditionally, Austin has been a hub of business. Recently, it has been called a potential ‘new Silicon Valley’, based on the number of tech startups that have launched and seen great success. If you get a good job in Austin, you will earn a good income. This is how people are able to afford rent in Austin in spite of its high price.
In the past, moving to Houston would lead to cheaper rent but low wages. Nowadays, however, Houston is on the up. There is a lot going on in Houston in an economic sense. It is not quite the hub that Austin is, and it is unlikely to ever catch up, but you can earn good money working in Houston.
Of course, people with an interest in aerospace engineering are drawn to Houston, but that is not the only industry that is thriving. In fact, Houston ranks fourth among U.S. metro areas in Fortune 500 headquarters. There is a lot of opportunity in Houston for young people with ambition.
As such, young people can now earn good money in Houston while spending a significantly smaller chunk of it on rent. Cost of living in Houston is also lower than it is in Austin, which is another reason young people are making the move.
Austin will always be a thriving metropolis. People move to Austin all the time. But, for many young Austin natives, Houston is now calling, with the offer of great jobs and cheap rent.