Why Austin Is a Growing Tech Hub

Why Austin Is a Growing Tech Hub

  • Lyon Gegenheimer
  • 11/3/22

In recent years, the business climate in Austin, Texas has shifted considerably, influencing the real estate market. Now that many major businesses in technology are shifting headquarters and office presence to Austin, the demand for homes has grown in the city as well. For years, California’s Silicon Valley has been known as the startup and technology hub of the American business world. However, today we see many startup companies and major technology conglomerates upping their presence in Austin.
 
What exactly is encouraging the massive shift from California to Texas?

Decreased cost of living

The shift from Silicon Valley to Austin allows residents to experience the same pace of life and the same great weather while working at the same companies but with a decreased cost of living. It's no secret that life in California can be expensive whether you are renting or buying. For employees as well as businesses, these decreased costs are attractive motivators to shift business to the market in Austin. Decreased cost of living allows employees to pay out less living expenses monthly but also allows businesses large and small to allocate their budgets in places other than just monthly rent, utilities, and operating expenses.
 
As this shift in the Austin market has been going on for a few years now, the decreased cost of living is not exactly as low as it once was. However, it still is in a more affordable range than silicon valley. The demand for homes has gone up since the population moving to the area has increased, so home and rental prices have increased as well. Companies moving to the area keep jobs local and allow for promotions and pay increases. This consistent stability has prompted the market to become competitive, and residents can keep up.

Major companies making their presence known

The seed of a technology-focused industry in Austin was not just planted recently. Apple’s North Austin Campus was already the second largest Apple campus in the world outside of its main Cupertino, CA campus. Other notable companies such as IBM and Dell have also populated Austin and surrounding areas for years and will likely do so for years to come.
 
In recent years five major companies in the technology sphere have created a massive presence in the Austin area. Not only have these moves been great for the local economy, but they have also been great for the housing market and these businesses specifically as they begin to build and complete massive campuses that create a certain level of longevity, enforcing their long-term presence in the city of Austin. Other companies have seen this and have decided to move start-up and medium-sized businesses to the city as well.

Oracle

Photo courtesy of Unsplash
 
Oracle’s campus in Austin is along the shores of Lady Bird Lake, a short drive from downtown. Once their original 500,000-square-foot building was complete, they immediately started construction on another building of the same size. They also purchased the newly built apartment building across the street with over three hundred units, in an effort to provide easily obtainable housing to workforce members relocating to the area.

Tesla

Photo courtesy of Unsplash
 
The Technology and automotive conglomerate Tesla moved their headquarters to Austin recently. They now boast the largest factory building in the world, estimated at a one billion investment. This mass feat alone brought thousands of Tesla employees to the area, fueling the real estate market.

Samsung

Samsung North America has been operating in Travis County for over 20 years and has invested 10 billion dollars in its semiconductor factory at its campus in East Austin. Samsung recently announced a new 17 billion dollar factory in Taylor, Texas, a bedroom community about 25 minutes from Austin.

Facebook & Google

Photo courtesy of Unsplash
 
As two of the largest companies in the world, they are also the two largest leaseholders in downtown Austin. Followed closely by TikTok and Indeed, their presence in the city is a marker of favorability to companies in the technology industry.
 
Since major companies have shifted to Austin, Texas, this sets the precedence that this is the area for technology companies to thrive in. Silicon Valley has not been completely erased, but Austin is certainly now nipping closely at its heels for becoming the go-to spot in the country for individuals and companies that wish to pursue success in the technology industry. This industry expansion has done wonders for the housing market in Austin and all of its surrounding areas. Between companies outright purchasing multi-unit apartment buildings and giving employees stipends for purchasing or renting new homes, the demand for properties in Austin is at an all-time high.

The result for the community

Whether you are looking to sell, buy, rent, or custom-build, this is a great time to get in on East Austin real estate. As it stands, the market is predicted only to continue to grow. The thriving culture, kind people, warm weather, and great food already made Austin an idyllic place to live.
 
Adding the necessity of the area for business and career purposes has turned it into America's newest expanding technology hub.
 
Navigating the market during such a busy time can be overwhelming, especially if you are new to the Austin area and its notoriously sprawling luxury homes. If you are in the process of selling a home in Austin or relocating to Austin as a part of the city's technological growth, a realtor is a perfect way to simplify this process. Even in the hot market, there are still massive amounts of houses for sale in East Austin and surrounding areas. An agent well-versed in the movement and trends of the local market will be able to guide you in the direction that will equate to an optimally beneficial property sale or purchase.
 
This is where Lyon Real Estate comes in. Lyon Gegenheimer is a well-rounded real estate professional with years of experience not only in real estate but in architecture and investing as well. Going through the home buying or selling process with someone who is experienced in more than just one avenue of real estate is the ideal way to go. Browse his portfolio to get an idea of where your Austin, Texas real estate journey could land you.

*Header photo courtesy of Unsplash



Work With Lyon

Lyon is the lead broker of the Lyon Real Estate Group at Compass based in Austin, Texas. Lyon Real Estate Group’s goals are to provide the highest level of real estate services available. Honesty, Experience, and Integrity are principles and qualities the brokers and agents demonstrate daily with enthusiasm and solid market knowledge.

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