I get a lot of questions about affordability in Austin. What about the suburbs? Is it worth it to live close to town? Where is the next growth? My answers to those questions depends on the audience. Beauty is in the eye of the beholder. The one thing I can say without question is that I like West of Austin for those who want to spend $500,000 or less and who want the Austin feel. I did some number crunching on a few areas out West.
Bee Cave is West of Austin and it is a booming place. It is almost contiguous city to get there, except the views you get on the way out are quite beautiful depending on your route. It is being developed. You can find traditional homes alongside a brand new home. It is a hot place for investors. There are new shopping centers being built. It is also not far from Austin, and the traffic is not as bad as the North trudge, in my opinion. My calculations from Austin Board of Realtors Multiple Listing Service (MLS) statistical reports indicate that the Median Sales Price for homes in Bee Cave has remained consistent over the past five years between $450k and $500k. That is an impressive amount of median home price, but you get a lot for the money out there.
Keep going up the road, and you have Lake South and into Lake North. Those areas have a median home sales price according to my calculations from MLS reports of $406,101 in 2014. There has been a steady increase in the median price for the past four years of just under 10%. Lake Travis is a booming area, and it is quite beautiful. There are some deals to be had in those areas, and I expect to see more growth that way. I am also a fan of Dripping Springs. The median sales price for Dripping Springs is $355,251 in 2014, consistently increasing from $281,042 in 2010 according to my calculations from the MLS statics reports.
To give a good frame of reference for these numbers, my calculations from MLS reports indicate that the Median Sales Price for homes in Austin as a whole for 2014 is $311,504, up consistently from $245,664 in 2010. What does all that mean? It means that buying in and around Austin has proven to be a sound market for real estate investment for the past five years.