Anton Kalafati on the Austin-area new home building boom

Anton Kalafati is president and majority owner of California-based B Side Construction. Anton Kalafati and his team have completed notable renovations to places like the CSU East Bay Hayward Presidential Suite, the SP2 Communal Bar and Restaurant in San Jose, and the Mill Valley Community Center. With over 13 years of experience, Anton Kalafati explains in the article below why there is a new home building boom in Austin, TX and how it is benefiting the local economy.

After a year of rapidly rising house prices, market analysts have realized that the US housing market has long suffered from a shortage of supply. With very little affordable housing available in many of the country’s most populated areas, first-time buyers have been squeezed out of the market. Yet Austin, TX, is now scrambling to turn the tide by investing in a new homebuilding boom, says Anton Kalafati.

Austin, TX looks set to become one of America’s largest metropolises as thousands move into the city. Thanks to a massive recovery in new home construction, Austin is also attracting younger first-time buyers. Anton Kalafati explores the drivers of the sudden housing boom and how it reshapes the local population.

Why Austin (and America) Needs So Many New Homes

Anton Kalafati explains that there is no getting around the fact that the United States needs more homes. Despite a steadily growing population, the 2010s saw a massive decrease in new construction across the country. This can largely be attributed to fears of a second housing bubble after the Great Recession of 2008. Yet with fewer houses being built, Anton Kalafati says prices have soared, pushing young first-time buyers out of the market.

Today, housing prices are around 40% higher than a year ago and rents are also on the rise. Unless new affordable homes are built to mitigate these effects, Millennials may never own a home in their lifetime. Fortunately, Austin is working to fix the problem, says Anton Kalafati.

Austin’s Rapid Growth Boosts Real Estate Investment

For a place once considered a mid-tier city known for its progressive politics in the heartland of conservative Texas, Austin is quickly transforming into America’s next big, up-and-coming city. In just one year, the city’s population grew by almost 3%, reflecting the same level of growth that most cities experience in a decade or more, says Anton Kalafati.

Even Elon Musk said Austin would become a hub city within the next 50 years and chose it as the location for his billion dollar manufacturing plant. Of course, with such growth, the city has to provide housing and the city is currently experiencing a massive housing boom, says Anton Kalafati.

Fears of a mini real estate bubble

Of course, explains Anton Kalafati, with any recovery in the market, there is fear of the formation of a bubble. However, analysts believe the new home building boom currently underway in Austin is different from the one that caused the Great Recession.

First, and most importantly, interest rates on mortgages are significantly higher than they were at the start of the 2008 financial crisis. This makes it harder for people with bad credit to get a mortgage. . If we go back to the period before the crash of 2008, we find that the housing market grew due to an increase in subprime mortgages, explains Anton Kalafati.

Austin is a different situation. New construction is appearing in the region due to an increase in demand, not due to perceived profitability on behalf of large financial institutions. However, the boom could run into small speed bumps along the way, especially as house prices continue to rise and population growth plateaus.

Anton Kalafati
What the Future Holds for Austin’s Real Estate Market

As Austin continues to grow, the real estate market will continue to heat up. Already, the city is experiencing bidding wars and homes are selling well above the asking price. If you’re considering buying a home in Austin, it’s important to act now, says Anton Kalafati. Prices will only continue to rise as more and more people move to town.

However, with some research and planning, you can find a great deal on a new home in Austin. Anton Kalafati recommends working with a local real estate agent who knows the market better than a national corporate agent. Also, don’t be afraid to aim around town!
As Austin continues to expand outward, you’ll soon find yourself in the heart of the next great metropolis. For individual business types, several high-rise buildings are also under construction, offering apartments in the city center with panoramic views.

The essential

Austin is currently experiencing one of the fastest population expansions in the United States. Thanks to the city’s sudden boom, the real estate market is also growing to accommodate its new residents. If you’re considering buying a home in Austin, it’s important to act now because prices will only continue to rise. However, with some research and planning, you can find a lot about a new home in Austin according to Anton Kalafati.

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