Elon Musk Is Investing in Austin, Texas — Should You?
Tesla Inc. CEO Elon Musk has announced plans to build his own company town on a reported 6,000 acres located approximately 35 miles outside of Austin, TX.
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Per The Wall Street Journal, the town is envisioned as a “sort of Texas utopia along the Colorado River,” with Musk planning to provide lower-than-market-value housing to the SpaceX and The Boring Company employees who will be working at the nearby facilities currently under construction.
“Snailbrook, Texas,” (a name derived from Boring’s company mascot) the land is located in Bastrop County area outside the state capital, near Tesla’s 10,000,000 sq ft Gigafactory and headquarters. According to Fortune, before the city is incorporated, Musk would need to have at least 201 residents. Once created, he will be able to set some city regulations.
Musk has been expanding his empire globally now for years, but has taken a particular interest in Austin ever since picking the site for Tesla’s fifth Gigafactory in 2020 and moving its legal headquarters there from Palo Alto, California, in 2021.
The move will bring thousands of jobs to an already flourishing area. Additionally, a massive $17 billion Samsung semiconductor plant located 20 miles from Austin, in nearby Taylor, is expected to begin operations in July 2024, according to mySanAntonio.com.
Should You Invest in Austin, Texas?
A perennial entry on most “best places to live” lists, Austin has been booming for years. Known for its vibrant culture and amazing music scene, Austin is one of the fastest-growing cities in the U.S., mainly due to its attractive economic climate.
According to Benzinga, Austin has seen a huge influx of residents (36%) and its gross domestic product (GDP) in the metropolitan area has nearly doubled since 2010. The largest office occupiers in Austin proper as of March 2024 are Dell Technologies, Apple, IBM, Meta and Google, according to Aquila.
But with so many businesses already established and so many people flocking to the capital, are there investment opportunities in Austin? It seems there’s still room to grow.
In its “A Beginner’s Guide to Investment Properties Austin TX,” Wildhorn Capital, talked positively of Austin’s shift to a business hotbed and capability for expansion.
“This transformation has turned Austin into a top-notch destination for real estate investing for passive and active investors,” the site wrote. “With its trajectory, Austin is poised to evolve into Texas’ next major metroplex, converging with San Antonio to forge a pathway of diverse opportunities for investors.”
With its resilient economy and thriving job market, there are a multitude of residential, multifamily and commercial investing strategies — and the potential for substantial returns — open to prospective Austinites. However, the good thing about investing anywhere is you don’t need to uproot and change your ZIP Code.
How to Invest in Austin
Austin is a fast-growing city that is attractive to both new residents and investors alike. It’s also a near-perfect location for passive investors interested in real estate syndications (when a group of investors pools their capital together to purchase a large real estate property) and build-to-rent opportunities (detached units built for long-term rental purposes).
Another way to passively invest in Austin is through a company like Cityfunds, which makes it possible for shareholders to own multiple properties in high-demand, city specific markets, like Austin, using a diversified portfolio of home equity investments.
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Typically, real estate is a great investment because it appreciates over time. When you add the charming culture, thriving economy, growing population and tremendous business and real estate investment opportunities, Austin is one of the most desirable cities in America.
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