Austin cheers Tesla’s headquarters move, but local home buyers left on edge

[ad_1]

AUSTIN, Texas, Oct. 11 (Reuters) – Austin prides itself on “keeping it weird,” but the city’s success has helped more big companies like Tesla Inc.

Tesla CEO Elon Musk said Thursday the electric automaker will move its headquarters from Palo Alto, California to Austin, Texas. Continue reading

Property prices in the Austin metropolitan area have skyrocketed in recent years, with big tech companies like Apple Inc (AAPL.O), Alphabet Incs (ogle, Google, and Oracle Corp (ORCL.N)) opening new campuses in and around the Build a city.

“I’m really excited about all of the jobs this creates, but my family can’t buy a home right now, and Tesla is only going to get worse,” said Trish Webb, 47, a resident of South Austin, on Friday in the lunch break from her job as a hospital administrative assistant.

Median house prices in Austin have increased around 40% over the past two years, with the median price for a house in September being around $ 549,000, according to real estate agent Redfin.

Frequent reports of other state buyers, particularly Californians, buying houses for cash at double the price have frustrated many Austinites. Over the summer, nearly three out of four homes sold in the city were sold above asking price, Redfin data showed.

Even before Musk’s move was announced, the electric vehicle manufacturer planned to move around 10,000 workers to an imposing new factory east of the city center. It is unclear how many Tesla employees will be moving from California or hiring in Texas.

“All of these Californians coming here are changing the culture too, and I’m worried it’s going to be too much,” said Reed Chorry, 26, who moved to Austin from Houston a few years ago and works in sales.

The city’s unofficial motto – “Keep Austin Weird” – has spawned a quirky, bohemian cultural scene that has turned local music festivals like Austin City Limits and South by Southwest into national attractions.

“It’s going to be hard to keep up with as Austin gets bigger,” said Ryan Baker, 32, who works at an East Austin restaurant.

Austin Mayor Steve Adler welcomed Tesla’s decision, saying the company fits in with Austin’s strong innovative, entrepreneurial and environmentally conscious culture. His office did not respond to questions about the affordability of apartments.

Austin’s rapid growth is also expected to exacerbate the city’s congestion problems as three in four residents drive to work alone.

While Austin works to improve its public transport network, Tesla’s factory is in a transit desert.

The city may be evaluating transit options to the plant, but it expects most Tesla employees to drive to the plant, said Rob Spillar, Austin traffic director. Austin hopes an increase in homes, businesses and medical clinics will attract workers to live near the plant, Spillar said.

Roberts Communities, a developer of affordable prefabricated housing, hopes to benefit from this. The company has bought large lots just minutes from the Tesla factory and sells homes for around $ 80,000.

Tesla factory workers earn an average annual salary of $ 47,000, an income that is considered low by the Travis County’s health and human resources department.

“All of these workers will want to live with their families in a nice, clean, and affordable place to live,” said Brandon Long, a sales manager for Roberts Communities at the local Oak Ranch location.

Reporting by Tina Bellon in Austin, Texas Editing by Joe White and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

[ad_2]