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Austin Falls to No. 15 Ranking in Urban Land Institute’s Annual Forecast of U.S. Markets to Watch in 2025
The Urban Land Institute (ULI), an education, research and resource organization focused on shaping the future of the built environment for transformative impact in communities worldwide, has released its annual Emerging Trends in Real Estate® 2025 forecast, and for the first time since 2010 Austin has earned a ranking outside of the top 10 national markets to watch.
AUSTIN, Texas – October 29, 2024 –
Since 2010, Austin has ranked seventh or higher in each Emerging Trends in Real Estate® report. The capital city placed No. 5 in the 2024 forecast, No. 4 in the 2023 forecast, No. 4 in the 2022 forecast, No. 2 in the 2021 forecast and No. 1 in the 2020 forecast. Other noteworthy Texas cities earning spots on the list include Dallas-Fort Worth at No. 1, Houston at No. 3 and San Antonio at No. 13.
Austin is one of many cities within the top-ranked category, called Super Sun Belt markets, which includes each of the four top-ranked markets and 13 of the top 20-rated markets. The study mentioned that like several Sunbelt regions, Austin’s previously strong migration in flow is now moderating, with net migration barely positive. House prices are growing, as are office vacancy rates. However, strong economic diversity and employment means this Sunbelt staple still holds its charm.
The report’s overarching theme is “The Time Has Come.” The skies are finally clearing over commercial real estate markets, even if some dark clouds still linger. Industry people are more sanguine than a year ago, though also realistic. Better times are ahead, but the healing will take time. Anticipation of an inflection had been building over the past year as inflation started to ease, though the wait took longer than most real estate people had expressed hope for in our prior report. The pivot arrived in summer 2024 with eight magic words from Federal Reserve Bank Chair Jay Powell: “The time has come for policy to adjust.” With that pronouncement at the Fed’s annual Jackson Hole Economic Symposium in late August, Powell clearly communicated to markets that inflation had been tamed and the COVID era of tightening was ending.
An Emerging Trends in Real Estate discussion will be the focus of the ULI Austin December 11 Breakfast, taking place from 8-10 a.m. at the Austin Central Library. Guests will hear national evaluation and insights from one of the report’s co-authors, after which a local panel will provide a unique perspective on the high-level results.
Austin Falls to No. 15 Ranking in Emerging Trends in Real Estate® Annual Forecast,
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To view the full report, visit https://digitalmkg.pwc.com/etre-2025-pwc-uli/1.
The five emerging trends to look for in 2025 and beyond include:
Austin Falls to No. 15 Ranking in Emerging Trends in Real Estate® Annual Forecast,
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Thus, it returns as a top trend for the 2025 edition of Emerging Trends, as it has for eight years running.
The 2025 Property Type Trends include:
Austin Falls to No. 15 Ranking in Emerging Trends in Real Estate® Annual Forecast,
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discoveries lead to new medicines and therapeutics. While off all-time highs set during the COVID-19 pandemic and with lackluster performance during 2022 and 2023, publicly traded biotechnology companies are once again on a growth trajectory.
Now in its 46th year, Emerging Trends in Real Estate®, undertaken jointly by PwC and ULI, is one of the most highly regarded annual industry outlooks for the real estate and land use industry. It features proprietary data and insights from more than 1,600 leading real estate industry experts, exploring shifts post-pandemic and analyzing both U.S. and Canadian markets.
About ULI Austin:
The Urban Land Institute (ULI) is a member-led organization shaping the future of the built environment for transformative impact in communities worldwide. ULI is a network of people in every profession and sector in real estate development and land use from all over the world and in every career stage. While global in scope, ULI is local in impact through sharing knowledge and making connections. The Austin District Council was founded in 1994 and now includes over 1100 members. Our members are involved in all aspects of the development and city planning process – private, public, and nonprofit. For more information, visit Austin.ULI.org.
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