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Austin ranks among top luxury real estate markets with soaring 550% sales volume increase – Austonia
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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.”
The Texas Longhorns are kicking off their season this Saturday. (Texas Longhorns/Twitter)
Enjoy summer music with lakeside views all weekend long at longtime Lake Austin hangout Mozart’s Coffee Roasters. Free acoustic performances kick off Thursday and run throughout the weekend.
All weekend | 📍Mozart’s Coffee Roasters, 3825 Lake Austin Boulevard
Swing by Jo’s Red River for a coffee and pet some pups along the way to start your weekend. All pets are adoptable, and 20% of drink sales go to the Austin Humane Society.
9-11 a.m. | 📍Darrell K Royal-Texas Memorial Stadium, 2100 San Jacinto Blvd
Texas football is back! The Longhorns are kicking off their 2022 season with a home matchup against the Louisiana-Monroe Warhawks.
7 p.m. | 📍Darrell K Royal-Texas Memorial Stadium, 2100 San Jacinto Blvd
The final showing of the Screen on the Green summer series will feature a screening of Luca, $4 happy hour and popcorn and cotton candy.
8:30 p.m. | 📍 Fareground Austin, 111 Congress Avenue
Celebrate (or mourn) the symbolic end of summer with a Pre-Labor Day party at the oldest bar in Austin. Entertainment includes food, drink and old-school jams from Stretch Musik Band.
7 p.m. | 📍 Historic Victory Grille, 1104 East 11th Street
Seven hours of live music, local brews, cigars and BBQ. It doesn’t get more Texan than that.
3- 10 p.m. | 📍Fair Market, 1100 East 5th Street
Wind down from the weekend with a free, donation-based sunset yoga session beside the Barton Springs pool. The event wraps up with a post-yoga night swim dip in the pool.
3- 10 p.m. | 📍Barton Springs Municipal Pool, 2201 William Barton Drive
(Pexels)
Downtown views might not cut it anymore for getting workers back into the office.
According to real estate agency CBRE, the U.S. downtown office vacancy rate topped office vacancies in the suburbs in the second quarter.
It’s the first time it’s happened in more than 20 years and reveals that companies might be making a shift out of city centers whether it’s to get a better deal on office space or to save workers on commute time and make a return to the office more attractive.
But even with this flip nationwide, it hasn’t appeared to reach Austin just yet. In the first quarter of this year, office vacancy rates in downtown and the suburbs were even at nearly 20%. Then in the next quarter, CBRE reported the suburban vacancy rate just above 20% while downtown’s was 15.5%.
It could just signal that the trend is slower to catch on in Austin as nationwide momentum for suburban office space carries on.
This week, commercial real estate agency Workspace Property Trust announced it had acquired approximately eight million square feet across 53 suburban office buildings in a deal valued at $1.1 billion. It includes Texas metros like Houston and Dallas, as well as Austin’s tech competitors like Silicon Valley and Seattle.
Workspace described the deal as creating convenient and attractive locations for the workforce.
“Driven by the redefinition of work as a result of the pandemic and the continued and unabated demographic shift to the suburbs, more and more Fortune 1000 corporations are rethinking their presence in downtown markets and relocating many of their office needs to suburban locations across the U.S.” Roger W. Thomas, a Workspace founder said. “Workspace is poised to lead this transformation.”
Thomas went on to note a few major corporations who have announced moves to suburban markets like Intel, Oracle, Tesla, Honeywell and more.
Austin’s suburbs have become an ideal spot for some, including Leander which has reigned as one of the fastest growing cities in the U.S. for two years in a row as people are drawn to its more affordable cost of living.
More and more companies are looking at the suburbs too, even if it’s not strictly for office space. This spring, Meta announced an $800 million data center in Temple. And recently, Skybox Datacenters and Prologis partnered to purchase 200 acres in Hutto for a data center and are planning for another $548 million data center in Pflugerville.
Downtown and city limits can still flex its growth, however. CBRE notes that Austin joins Nashville, Charlotte and Boston as having the most space under construction as a share of their existing inventory. At least part of that excitement is set in downtown with several projects expected to break ground by the end of the year. Among those, CBRE reports, is the skyscraper poised to be the tallest tower in the state that would add another 700,000 square feet of office space to the construction pipeline.
Transport providers, businesses and governments on Saturday are rushing to get all their systems back online after long disruptions following a widespread technology outage.
The biggest continuing effect has been on air travel. Carriers canceled thousands of flights on Friday and now have many of their planes and crews in the wrong place, while airports facing continued problems with checking in and security.
At the heart of the massive disruption is CrowdStrike, a cybersecurity firm that provides software to scores of companies worldwide. The company says the problem occurred when it deployed a faulty update to computers running Microsoft Windows, noting that the issue behind the outage was not a security incident or cyberattack.
Here’s the Latest:
Microsoft: 8.5 million devices on its Windows system were affected
Microsoft says 8.5 million devices running its Windows operating system were affected by a faulty cybersecurity update Friday that led to worldwide disruptions.
A Saturday blog post from Microsoft was the first estimate of the scope of the disruptions caused by cybersecurity firm CrowdStrike’s software update.
“We currently estimate that CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines,” said the blog post from Microsoft cybersecurity executive David Weston.
“While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.”
Weston said such a significant disturbance is rare but “demonstrates the interconnected nature of our broad ecosystem.” Windows is the dominant operating system for personal computers around the world.
Austrian doctors’ group calls for better data protection for patients
In Austria, a leading doctors organization said the global IT outage exposed the vulnerability of health systems reliant on digital systems.
“Yesterday’s incidents underscore how important it is for hospitals to have analogue backups” to safeguard patient care, Harald Mayer, vice president of the Austrian Chamber of Doctors, said in a statement on the organization’s website.
The organization called on governments to impose high standards in patient data protection and security and on health providers to train staff and put systems in place to manage crises.
“Happily, where there were problems, these were kept small and short-lived and many areas of care were unaffected” in Austria, Mayer said.
Germany warns of scams after major IT outage
BERLIN — The German government’s IT security agency says numerous companies are still struggling with the consequences of a far-reaching technology outage.
“Many business processes and procedures have been disturbed by the breakdown of computer systems,” the BSI agency said on its website.
But the agency also said Saturday that many impacted areas have returned to normal.
It warned that cybercriminals were trying to take advantage of the situation through phishing, fake websites and other scams and that “unofficial” software code was in circulation.
The agency said it was not yet clear how faulty code ended up in the CrowdStrike software update blamed for triggering the outage.
European airports appear to be close to normal
LONDON — Europe’s busiest airport, Heathrow, said it is busy but operating normally on Saturday. The airport said in a statement that “all systems are back up and running and passengers are getting on with their journeys smoothly.“
Some 167 flights scheduled to depart from U.K. airports on Friday were canceled, while 171 flights due to land were axed.
Meanwhile, flights at Berlin Airport were departing on or close to schedule, German news agency dpa reported, citing an airport spokesman.
Nineteen flights took off in the early hours of Saturday after authorities exempted them from the usual ban on night flights.
On Friday, 150 of the 552 scheduled inbound and outbound flights at the airport were canceled over the IT outage, disrupting the plans of thousands of passengers at the start of the summer vacation season in the German capital.
German hospital slowly restoring its systems after widespread cancellations
BERLIN — The Schleswig-Holstein University Hospital in northern Germany, which on Friday canceled all elective surgery because of the global IT outage, said Saturday that it was gradually restoring its systems.
In a statement on its website, it forecast that operations at its two branches in Kiel and Luebeck would return to normal by Monday and that “elective surgery can take place as planned and our ambulances can return to service.”
Britain’s transport system still trying to get back on track
LONDON — Britain’s travel and transport industries are struggling to get back on schedule after the global security outage with airline passengers facing cancellations and delays on the first day of summer holidays for many school pupils.
Gatwick Airport said “a majority” of scheduled flights were expected to take off. Manchester Airport said passengers were being checked in manually and there could be last-minute cancellations.
The Port of Dover said it was seeing an influx of displaced air passengers, with hourlong waits to enter the port to catch ferries to France.
Meanwhile, Britain’s National Cyber Security Center warned people and businesses to be on the lookout for phishing attempts as “opportunistic malicious actors” try to take advantage of the outage.
The National Cyber Security Center’s former head, Ciaran Martin, said the worst of the crisis was over, “because the nature of the crisis is that it went very wrong very quickly. It was spotted quite quickly and essentially it was turned off.”
He told Sky News that some businesses would be able to get back to normal very quickly, but for sectors such as aviation it would take longer.
“If you’re in aviation, you’ve got people, planes and staffs all stranded in the wrong place… So we are looking at days. I’d be surprised if we’re looking at weeks.”
Germany airline expects most of its flights to run normally
BERLIN — Eurowings, a budget subsidiary of Lufthansa, said it expected to return to “largely scheduled” flight operations on Saturday.
On Friday, the global IT outage had forced the airline to cancel about 20% of its flights, mostly on domestic routes. Passengers were asked to take trains instead.
“Online check-in, check-in at the airport, boarding processes, booking and rebooking flights are all possible again,” the airline said Saturday on X. “However, due to the considerable extent of the global IT disruption there may still be isolated disruptions” for passengers, it said.
Delta Air Lines and its regional affiliates have canceled hundreds of flights
DALLAS — Delta Air Lines and its regional affiliates canceled more than a quarter of their schedule on the East Coast by midafternoon Friday, aviation data provider Cirium said.
More than 1,100 flights for Delta and its affiliates have been canceled.
United and United Express had canceled more than 500 flights, or 12% of their schedule, and American Airlines’ network had canceled 450 flights, 7.5% of its schedule.
Southwest and Alaska do not use the CrowdStrike software that led to the global internet outages and had canceled fewer than a half-dozen flights each.
Portland, Oregon, mayor declares an emergency over the outage
PORTLAND, Ore. — Mayor Ted Wheeler declared an emergency Friday after more than half of the city’s computer systems were affected by the global internet outage.
Wheeler said during a news conference that while emergency services calls weren’t interrupted, dispatchers were having to manually track 911 calls with pen and paper for a few hours. He said 266 of the city’s 487 computer systems were affected.
Border crossings into the US are delayed
SAN DIEGO — People seeking to enter the U.S. from both the north and the south found that the border crossings were delayed by the internet outage.
The San Ysidro Port of Entry was gridlocked Friday morning with pedestrians waiting three hours to cross, according to the San Diego Union-Tribune.
Even cars with people approved for a U.S. Customers and Border Protection “Trusted Traveler” program for low-risk passengers waited up to 90 minutes. The program, known as SENTRI, moves passengers more quickly through customs and passport control if they make an appointment for an interview and submit to a background check to travel through customs and passport control more quickly when they arrive in the U.S.
Meanwhile, at the U.S.-Canada border, Windsor Police reported long delays at the crossings at the Ambassador Bridge and the Detroit-Windsor tunnel.
U.S. filings for unemployment benefits rose again last week and appear to be settling consistently at a slightly higher though still healthy level that the Federal Reserve has been aiming for.
Jobless claims for the week ending July 13 rose by 20,000 to 243,000 from 223,000 the previous week, the Labor Department reported Thursday. It’s the eighth straight week claims came in above 220,000. Before that stretch, claims had been below that number in all but three weeks so far in 2024.
Weekly unemployment claims are widely considered as representative of layoffs.
The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March of 2022 in an attempt to extinguish the four-decade high inflation that shook the economy after it rebounded from the COVID-19 recession of 2020. The Fed’s intention was to cool off a red-hot labor market and slow wage growth, which it says can fuel inflation.
AP AUDIO: More Americans apply for jobless benefits as layoffs settle at higher levels in recent weeks
AP correspondent Shelley Adler reports filings for unemployment benefits have risen.
“The Fed asked to see more evidence of a cooling economy, and for the most part, they’ve gotten it,” said Chris Larkin, managing director of trading and investing at E-Trade. “Add today’s weekly jobless claims to the list of rate-cut-friendly data points.”
Few analysts expect the Fed to cut rates at its meeting later this month, however most are betting on a cut in September.
The total number of Americans collecting unemployment benefits rose after declining last week for the first time in 10 weeks. About 1.87 million Americans were collecting jobless benefits for the week of July 6, around 20,000 more than the previous week. That’s the most since November of 2021.
Continuing claims have been on the rise in recent months, suggesting that some Americans receiving unemployment benefits are finding it more challenging to land jobs.
And there have been job cuts in a range of sectors in recent months, from the agricultural manufacturer Deere, to media outlets like CNN, and elsewhere.
The four-week average of claims, which evens out some of the week-to-week volatility, rose by 1,000 to 234,750.
Strong consumer demand and a resilient labor market has helped to avert a recession that many economists forecast during the extended flurry of rate hikes. As inflation continues to ease, the Fed’s goal of a soft-landing — bringing down inflation without causing a recession and mass layoffs — appears within reach.
While the labor market remains historically healthy, recent government data suggest some weakening.
The unemployment rate ticked up to 4.1% in June, despite the fact that America’s employers added 206,000 jobs.
Job postings in May rose slightly to 8.1 million, however, April’s figure was revised lower to 7.9 million, the first reading below 8 million since February 2021.
Darden Restaurants is adding Tex-Mex to the menu.
The parent company of Olive Garden, LongHorn Steakhouse, Yard House and other chains, said Wednesday it’s buying Chuy’s for approximately $605 million.
Darden said it will acquire all outstanding shares of Chuy’s for $37.50 per share. Those shares closed at $25.27 apiece on Wednesday, then soared past $37 in after-hours trading once the deal was announced. Darden shares fell 1% in after-hours trading.
Darden said the boards of Darden and Chuy’s have unanimously approved the acquisition. The deal is expected to close later this year, if it’s approved by Chuy’s shareholders.
Chuy’s Holdings Inc. was founded in Austin, Texas, in 1982. It now operates 101 restaurants in 15 states and has 7,400 employees. It’s known for its eclectic decor and fresh food, including handmade tortillas and sauces.
Like Darden, Chuy’s owns and operates all of its restaurants. Darden President and CEO Rick Cardenas said Chuy’s is a differentiated brand with strong growth potential that will expand Darden’s dining options.
Darden, based in Orlando, Florida, operates more than 1,900 restaurants and has 190,000 employees. It also owns Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s and Bahama Breeze.
“Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy’s is an excellent fit that supports our winning strategy,” Cardenas said in a statement.
Chuy’s Chairman, CEO and President Steven Hislop said the acquisition will accelerate Chuy’s business goals and expand the brand to more communities.
The deal comes as both restaurant companies have been struggling with a downturn in customer traffic due to consumer concerns about inflation.
In Darden’s fiscal fourth quarter, which ended May 26, same-store sales — or sales at restaurants open at least a year — were flat compared to the prior year. Chuy’s same-store sales were down 5% in its first quarter, which ended March 31.
Investment bank Jefferies downgraded shares for both restaurant chains earlier this month, saying they’re being squeezed by price promotions at fast-food chains like McDonald’s as well as at casual dining peers like Chili’s and Applebee’s.
