Austin Market Report

Austin in the News: Austin continues to receive numerous accolades confirming it is among the best places to live and to do business in the United States. Recent accolades include:

  • Third Strongest Metro Economy in the Country (Brookings Institution, June 2009)
  • Best City for Recession Recovery (Forbes, June 2009)
  • Number 7 Biggest Tech Cities (bizjournals.com, May, 2009)
  • Best Bargain City in the U.S. (Forbes, May 2009)
  • Number 1 Big City for Job Growth (Forbes & New Geography, April 2009)
  • Among Top 20 Best Places for Business & Careers (Forbes, March 2009)
  • One of Two Fastest-Growing Metro Areas between 2007 and 2008 (U.S. Bureau of the Census, March 2009)
  • Austin-Bergstrom International Airport Among Top Performing Airports (Airports Council International, March 2009)
  • Second Healthiest Housing market for 2009 (Builderonline.com, February 2009)

 

Texas in the News:

  • Number 1 State for Business (Directorship, June 2009)
  • One of Top 7 Tax-free Havens (CNNMoney.com, May 2009)
  • Top in Production of Wind Power (American Wind Energy Association, April 2009)
  • Nation’s 2nd Largest Cyberstate (TechAmerica, March 2009)
  • Best for Business (Chief Executive, March 2009)
  • Fourth Best State to Start a Business (U.S. News & World Report, January 2009)

 

Population Growth: Austin MSA currently has a population of 1.65 million people and has experienced a stellar 3.4% average annual growth rate since the 2000 Census. According to the Texas State Data Center, the Austin population is expected to grow by 83% to over three million by the year 2030.

 

Population Projections (5 county area)

 

2000

2010

2020

2030

2040

Bastrop County

57,733

81,717

112,096

149,340

192,599

Caldwell County

32,194

38,724

45,622

51,469

55,752

Hays County

97,589

164,078

250,886

355,508

469,394

Travis County

812,280

992,773

1,168,738

1,336,648

1,498,569

Williamson County

249,967

435,355

715,395

1,137,513

1,742,619

Total: Austin MSA

1,249,763

1,712,647

2,292,737

3,030,478

3,958,933

Growth rates

 

2000-2010

2010-2020

2020-2030

2030-2040

Austin MSA

37.0%

33.9%

32.2%

30.6%

Texas

21.7%

21.6%

20.8%

20.3%

 

Source: Texas State Data Center, 2008 Population Projections

 

 

 

Population Distribution by Age: With 1.6 million residents, nearly half of the region’s population, 44%, is between the ages of 18 and 44 (compared to 37% nationally) and Austin’s median age, 32.9, is four years younger than the national median, 36.8.   

 

                                     Source: U.S. Bureau of the Census

 

Employment Growth:  Austin has maintained an average annual job growth rate of 2.5% from 1998 to 2008, over double the national rate of growth 1.1% for the same time period. 

 

Diversified Employment Base: The Texas Workforce Commission breaks Austin’s employment base into 12 sectors as follows:

 

Employment by Industry 2008

 

Austin MSA

United States

Government

21.0%

16.4%

Construction & Mining

6.1%

5.8%

Manufacturing

7.5%

9.8%

Wholesale Trade

5.3%

4.4%

Retail Trade

10.8%

11.2%

Transportation, Warehousing, & Utilities

1.7%

3.7%

Information

2.7%

2.2%

Financial Activities

5.8%

5.9%

Professional & Business Services

14.4%

16.0%

Education & Health Services

10.4%

13.8%

Leisure & Hospitality

10.4%

9.8%

Other Services

3.9%

4.0%

Source: Texas Workforce Commission

 

Skilled Labor Force: The Austin economy consists of a highly-skilled labor force which produces higher than average incomes.  In 2007, the median household income in Austin was $56,746 and the percentage of the population above the age of 25 that had attained a Bachelor’s degree or higher was 38.4%. This compares to $47,548 and 25.2% for the State of Texas and $50,740 and 27.5% for the United States.

 

Cost Advantage: The Austin region makes financial sense with its low cost of doing business, affordable home prices, and a lower overall cost of living compared with most of the country.

Competitive Labor Costs: Average Annual Salaries, May 2008

 

 

All Occupations

Business & Financial

Computer & Math

Engineering
& Architect

Office

Production

Transportation &
Material Moving

Austin

$42,550

$62,300

$77,340

$69,400

$32,280

$29,580

$27,070

Chicago

47,120

69,190

76,810

72,610

34,890

33,040

33,770

Detroit

46,700

69,570

73,320

70,500

34,360

40,930

35,590

Indianapolis

41,420

61,030

66,360

63,700

32,410

34,080

31,580

Lexington

38,510

54,250

59,640

66,180

29,640

30,780

29,910

Nashville

39,280

57,710

60740

61,350

61,670

34,690

29,990

San Jose

64,310

81,860

102,480

99,000

41,590

36,030

33,350

Toledo

38,880

56,790

57,760

62,930

30,440

36,840

31,480

U.S.

42,270

64,720

74,500

71,430

32,220

32,320

31,450

Source: U.S. Bureau of Labor Statistics

 

Low Cost of Living: Aggregate costs for real estate, energy, wages and taxes in Texas are below most states in the country. According to the National Association of Realtors, the median sales price of a single family home in 2008 was $188,600 while the national average was $196,600. The U.S. Census Bureau reported that Austin’s state and local tax burden per capita was $3,235 while the national average was $4,001.

 

Quality of Life: Chamber of Commerce highlights a number of Austin’s benefits and culture as:

  • Affordable and diverse neighborhoods, from urban lofts to hill country estates
  • A climate made for outdoor enjoyment and recreation nearly year round
  • Many professional and amateur sports venues and events
  • More fine restaurants and clubs per capita than any other U.S. city
  • A lush environment highlighted by parks, lakes and trails
  • A creative culture that supports the arts, music and the theater
  • Year-round festivals and celebrations for people of all ages
  • Some of the highest ranked public school districts

 

Academic Strength: Eight colleges and universities, with renowned academic programs and enrollment of over 122,000 students. The student pool within 100 miles of Austin exceeds 330,000, providing one of the world’s strongest talent pools. In 2007, over 38% of adults in the Austin metro have attained a college degree or higher, compared to the national average of 27%. University of Texas at Austin is respected worldwide, ranking 18th in the nation’s best business schools (2009), consistently ranking in the top 10 nationally for the number of science and engineering doctoral degrees, and being the fourth most patent-earning university in the country. As a world-class research institution, UT Austin’s annual research expenditures are more than $497 million.

 

Climate: Classified as “humid subtropical” with hot summers and mild winters with 300 days of sunshine annually.

Climate Norms

Temperature

Minimum

Average

Maximum

January

37.3°F

2.9°C

48.1°F

8.9°C

58.9°F

14.9°C

April

56.3°F

13.5°C

67.1 °F

19.5 °C

77.8°F

25.4°C

July

71.5°F

21.9°C

82.8 °F

28.2 °C

94.0°F

34.4°C

October

56.3°F

13.5°C

68.6 °F

20.3 °C

80.8°F

27.1°C

Annual precipitation

31.35 in.

79.63 cm

Annual snowfall

0.8 in.

2.0 cm

Annual average wind speed

7.9 mph

12.7 mph

Annual relative humidity

67%

--

 

Source: U.S. National Climatic Data Center

 

Centrally Located and Well Connected: Strategically located between the east and west coasts and centrally located relatively to the major Texas metros of San Antonio, Dallas and Houston. The modern international airport, the Austin-Bergstrom International, is served by 12 major airlines with 300 daily arrivals and departures including direct flights to more than 80 domestic destinations and 3 foreign cities.

Non-Stop Jet Destinations 2009

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