How California is driving the growth of Austin and Phoenix
When founding Valorem-Ventures we made a decision to focus in the Austin and Phoenix metro markets. We have a local presence with our team and our partner groups' teams in these two markets and can provide in-person operational oversight, which is a key component to successfully operating multifamily properties.
From 2010 to 2019, the Austin area ranked as the fastest-growing large metro area in the U.S., according to Census Bureau data figures published March 26. The area’s population shot up 29.8 percent during that period, landing at 2,227,083 as of July 1, 2019. That works out to 169 people moving in per day into Austin during 2019. Over 200 people were moving into Phoenix per day in 2019. That growth rate has accelerated in both cities in 2020.
I was looking at some recent survey data from California that tracked the exodus of their residents to other states and found it intriguing that the exodus from California started in 2017 and was growing by 2019, even before the pandemic. The pandemic only accelerated this phenomenon and it will be interesting to see what the mid 2021 survey shows. I suspect it will be in the 35 to 40% range.
On the flip side if we look at there Californians are going, Texas and Arizona are the top two states they have been moving to. This is further validation that the growth we are seeing in Austin and Phoenix is not just a pandemic induced temporal phenomenon but is a long term shift.