Why do people pay so much to live on Lake Austin?

June 11, 2014by Brian Talley
Lake Austin beauty
Lake Austin beauty

Investing in Central Texas: Live on Lake Austin

The value of a home is largely driven by the opinion that a property has certain value. Sounds like common sense, right? When it comes to homes on Lake Austin there are a lot of people with the opinion that these properties have a lot of value, myself included. In fact, I would go so far as to say that property on Lake Austin is the most desirable and valuable strip of real estate in the State of Texas. Needless to say, there is a lot of demand for people wanting to live on the lake and a finitely amount of inventory. In fact, demand is so great that some homes sell for over $1500 per square foot and some over $10 million dollars. This may not be a lot for New York or L.A. but it is a big number for a small town like Austin, TX! So you might be asking yourself why people are willing to pay so much to live on a lake? Here are the top 5 reasons why people pay so much to live on Lake Austin.

  • Constant level. While the recent drought has tested the will of the Colorado River Authority in protecting this policy, the lake has remained constant level thus far during one of the worst droughts in recent history.
  • Close to downtown Austin. It is important to understand that Lake Austin is more like a river – the Colorado River to be more specific. But it is still considered a lake and it is approximately 20 miles long. With that said, the lake is as close as 2.5 miles from downtown Austin and as far as 21.5 miles from downtown depending on the location. This is the closest lake to downtown Austin where motorized water sports are allowed.
  • Beauty. Despite the perception that Texas is an arid desert with tumbleweed and dust bowls, the Austin area is central to the Texas Hill Country with gorgeous hills, trees, lakes, rivers, and wildlife. Lake Austin is truly the epicenter of beauty in the Austin area.
  • Investment. It is true that home sales slowed significantly on Lake Austin during the recession. But sold prices per square foot soared by 27% comparing 2006/2007 to 2009/2010 and 12.4% comparing 2009/2010 to 2013/2014. Average sold prices have progressed from $1.5M to $1.8M to $2.6M during the same time period comparisons.
  • Prestige. If you have lived in Texas for some time and can say you have a home on Lake Austin, you are literally the envy of just about everyone you know and even those you don’t know. I know few people that would not want to live on Lake Austin given the resources.

Ready to live on Lake Austin? View available homes here.

By Brian Talley of Regent Property Group