Building Costs Per Square Foot in the City of Austin (TX), USA

Newly Built House in Austin 4504 Oakwood Boulevard TX-78731 – 4 Bed and 5 Baths with 2 x Attached Garages on Gross Floor Area 2,833 sqft – Built in 2022 – Price $2,250,000 (1)

Residential Construction Market Analysis in the City of Austin (TX), USA

Building costs are 12% above the national average in the City of Austin in Texas. Austin is one of the top 10 real estate markets in the country. The capital city is booming with Residential Building Projects in Austin.

Residential projects including single-family homes are coming up in Austin, with the area hitting the status of one of the busiest residential construction markets in the country. According to an NAHB report, 10597 single-family home permits were issued in Austin in the first 5 months of 2022. It puts Austin at No.5 among the Unites States metro areas for single-family construction permits. The residential building market is hot in Austin as builders are shopping lands for Residential Building Projects in Austin to match supply and demand.

Austin Construction Outlook

Like every other part of the economy, inflation and shortage of labor shortages are hitting the construction sector in Austin. The tight labor market has affected commercial and Residential Building Projects in Austin. Other than labor shortages, the construction industry has also faced supply chain challenges. Even after the COVID-19 surge, the industry is suffering from rising materials costs and supply chain issues. While the cost of lumber shows some signs of easing, the cost of steel, plastic, and others are climbing. Thus, they have a dragging effect on the industry growth. Behind the backdrop of these problems, the 2022 outlook is positive, with lots of construction activity expected.

Austin Housing Market Analysis and Forecast

Despite Challenges from the Pandemic and other issues, experts predict that 2022 will experience a growth in the Residential Building Projects in Austin. They are optimistic that the increase in federal infrastructure investments will propel the construction industry toward growth. The market is now extremely hot, and it experiences an increase in price over the last year. Austin’s strong in-migration feature with a recovering economy turned real estate into a seller’s market. The population of Austin is 2,176,000 with an increase of 2.79% from 2021. Such growth demands more housing construction. Due to a reasonable cost of living, people are migrating to Austin. The data show that there is an increased new listing and active listing in all areas. It indicates a growth in the Austin housing sector. An increase in supply from the previous year has been observed in 2022. The trends indicate stabilization and growth of the Austin housing market.

Austin Average House Price (Median Home Price)

Austin is one of the most desired places to live in the United States. Because of its mixed economy and quality of life, the place ranks high on the list. Main outdoor attractions include an array of festivals, from food to music and other recreational activities.

The prices of Austin homes are increasing, and 2022 is showing signs to be a big year for the Austin housing market. Subsequently, Homebuilders are trying to meet the demand of lower price category homes by building homes in the greater Austin area, where land costs are lower than that of Austin city.

The state of the property market in Austin is shaped by a variety of factors. The city of Austin lies at the center of the great migration of the United States. The high rate of migration from within the state and out of state has strongly contributed to the market for Residential Building Projects in Austin. Many companies have also migrated to the area. It forced a large number of people to settle in the area. According to the Austin Board of Realtors (ABOR) Central Texas Housing Market Report of 2022, the median price of single-family homes, condos, and townhomes rose to a record $667,000 in April 2022 for Austin city. It showed 18% growth.

The Median Sales Price of single-family homes, condos, and townhomes in Austin Round-Rock MSA has grown by 19% and reached $550,000 in May 2022. The U.S. Office of Management and Budget also included Bastrop, Caldwell, Hays, Travis, and Williamson Counties in Greater Austin (Austin–Round Rock-Georgetown MSA) in March 2020.

These are the median figures to expect when it comes to residential property prices for townhouses, condominiums and single-family homes in this Zip Code:

• Bastrop County: MSA 400,900 with 24 % increase.
• Caldwell County: MSA $345,000 with 43% increase.
• Hays County: MSA 470,000 with 25% increase.
• Travis County: MSA 659,000 with 21% increase
• Williamson County: $509,500 with 18% increase

The above place has also experienced an increase in new listings and active listings. Many homes also have multiple offers.

Proposed Residential Building Projects in Austin

With multiple developments and improvements, Austin is experiencing a robust expansion. Because of its popularity, the construction of residential complexes has gained momentum in the metro area. Here are five of them:

1. Rainey Street Condo Tower at 44 East Avenue

This 51-story condominium tower will change the Austin skyline. The location of this building project is on East Avenue, around the corner between Cummings Street meets and Lady Bird Lakes where the hiking trail makes its way.

The tower will be around 545 feet tall with approx 460,000 square feet in total. It will include 300 plus residences for sale. The design will include various apartment configurations with 1 to 4 bedrooms to accommodate a wide range of client budgets.

Some of these will have impressive penthouse features. The ground floor will include a dining space of around 3,000 square feet, and there will be more than 500 parking spaces.

2. Goodwin Apartments

This Residential Building Projects in Austin is located at 3706 Goodwin Ave. It will be 5 story building and will have 375 residential units. The expected delivery time of the project is the first quarter of 2024. Located in the growing area of East Austin, it delivers a diverse and unique feeling. The project will have spacious 1, 2, 3, and 4-bedroom apartments with a large closet and a fully-equipped kitchen with a pantry.

3. The Emma

This residential project will have 5 stories. It is located at 3219 Manor Rd and will have 146 residential units. Groundbreaking is scheduled for the second quarter of 2022 and the expected delivery time is the fourth quarter of 2022. The apartments will feature air-conditioning, heating, tub/shower, and oven.  The community will also have a pool and fitness center.

4. Denny’s Condo Tower near Downtown Austin

It sits next to the DoubleTree hotel and is located at the corner of East 16th Street and the I-35 Frontage Road.  The Denny’s Condo Tower will have 18 floors. There will be 250  condos in the tower. 178 of them will have one-bedroom residences and 72 of them will have two bedrooms. Moreover, 10% of the total units will be marked as income-restricted residences. It will comprise eighteen one-bedroom and seven two-bedroom condos.

5. Austin 255 Affordable Apartments

A 255-unit residential complex is coming up at 4515 S Congress Ave in Travis County, Austin on a 3.39-acre land. It will include 50 studio units, 162 1-bedroom units, 38 2-bedroom units, and 5 live-work units. The studio units will be 418 square feet. The size of 1-bedroom units will have a square footage of 555 sqft to 793 sqft.

Two-bedroom units will be from 919 to 1,036 square feet and the area of the live-work units will be 1,330 square feet. It will boast many community features like club rooms, courtyards, fitness centers, swimming pools, etc. The expected delivery date is scheduled for the 4^th quarter of 2022.

Summing up

Because of high demand and the diverse economy, the economic impact of Residential Building Projects in Austin is expected to be steady. As such, investors can expect the capital city to survive the impact of the corona pandemic. This article is not meant for taking decisions. One should do sufficient research and take professional help for making any real estate investment.

Newly Built House in Austin 3605 Oak Springs Drive #2 TX-78721 – 2 Beds and 3 Baths with Attached Garage on Gross Floor Area 1,098 sqft – Built in 2022 – Price $620,000 Cottage Style (2)

Building Costs Per Square Foot for Single Family Homes in the City of Austin (TX), USA

Building costs are 12% above the national average in the City of Austin in Texas.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Austin City ranges from $386.28 per sqft to $592.14 per sqft, with the average being $455.86 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Austin City ranges from $234.76 per sqft to $359.86 per sqft, with the average being $277.04 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Austin City ranges from $151.76 per sqft to $230.51 per sqft, with the average being $177.68 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Austin City ranges from $110.76 per sqft to $169.85 per sqft, with the average being $130.71 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Austin City ranges from $89.90 per sqft to $137.68 per sqft, with the average being $106.01 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Austin City ranges from $70.91 per sqft to $108.68 per sqft, with the average being $83.65 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.