Austin is Booming with Work-from-Home and Out-of-State Buyers

AUSTIN, TX—As employers extend the option of working from home, homebuilders and master-plan developers are buzzing, especially in suburban markets. Developers in the tech/creative industry hub of Austin confirm this trend and report a surge in buyers from both the urban core and out of state.

“Instead of living in San Francisco, New York or Los Angeles, workers can now choose to live in the relatively less expensive suburbs of Austin, Raleigh, Nashville and Denver,” said David Shulman, senior economist for the UCLA Anderson Forecast. “All that is needed are fast Internet connections and a decent airport.”

With two master plans in the region, Headwaters in Dripping Springs and Orchard Ridge in Liberty Hill, Freehold Communities confirms this trend. Sales combined for both communities are up a hefty 250% from January to August 2020, as compared to the same months in 2019.

“Both our Headwaters and Orchard Ridge communities recorded exceptionally strong second quarter sales and that trend has continued through the third quarter,” Matt D. Matthews, Freehold Communities Texas division president, tells GlobeSt.com. “This is another testament to the desirability of the Austin market, especially among families relocating for job opportunities in the tech and creative industries.”

He noted that as people spend more time at home, cities and communities designed for healthy and active lifestyles will only continue to become more desirable.

“Our communities in Texas focus on trails, views and open space which are certainly appealing to prospective buyers as recent events have only accentuated the work-from-home concept,” Matthews says.

Buyers relocating from Austin’s urban core are also seeking additional living space, suitable for home offices.

Katie Linn and her husband Emil Bo Sørensen are among the homebuyers at Headwaters. Employed by the University of Texas at Austin, Linn and her husband will work from home after relocating from their current 600-square-foot condominium in South Central Austin. Their new home was priced at approximately $400,000 and is around 1,887 square feet.

“With the University now allowing work-from-home, we will have a larger home that can accommodate my home office,” said Linn. “Financially it was the right move for us. Of course, as Millennials, having a home office was already very high on our checklist.”

With homes ranging up to 3,200 or more square feet by builders including CastleRock Communities, Dream Finders Homes, GFO Home, Lennar, Pacesetter Homes, Ashton Woods, David Weekley Homes and Taylor Morrison–both communities offer space for home offices, studies and entertainment spaces. In addition, the master plans’ amenities include community workspaces including a WiFi cafe that will be suitable for residents long after use restrictions are lifted. Freehold Communities is also seeing a surge of interest from out-of-state buyers.

“Potential buyers relocating from other states continue to tour our communities, with a specific concentration of relocation buyers from California,” said Matthews.

Both communities also maximize nature settings. Headwaters designers crafted the community to preserve the natural landscape and protect the local watershed. The plan preserves more than 1,000 acres for parks and open space with miles of trails. HW Central (the amenity center) offers the Wi-Fi cafe work and social space, plus a split-level pool with waterfall and fitness center.

Headwaters was recently named Master-Plan Community of the Year by the Homebuilders Association of Greater Austin (for communities of 600 acres or more).

Orchard Ridge’s social amenities include the Founders Garden, where residents have access to raised beds dedicated to growing vegetables, flowers and herbs. Additional raised beds form the community garden which is planted with blueberries, raspberries and strawberries. These amenities are part of the agrihood trend that Freehold Communities is pioneering nationwide.