How Is the Austin Economy?
Whether you live in Austin or are considering moving here, you probably have questions about recent Austin economy and data and trends. To kick off 2025, here are some of the most frequently asked questions about Austin’s economy and the answers.
What is the current unemployment rate in Austin?
As of November 2024, Austin’s unemployment rate remained steady at 3.5% for the Austin Metropolitan Statistical Area (MSA), below the state and national rates of 4.2%. ¹
How will Austin’s job market perform in 2025?
Last quarter, Austin experienced a sluggish to modest increase in 2024, based on the Federal Reserve Bank of Dallas report. However, AngelouEconomics reported that the 2025 outlook for employment growth will be strong.
What are the average wages in Austin?
In November 2024, the average hourly wage in Austin was $35.15, growing 4.5% year over year. However, wage increases are not keeping up, driving lower-wage earners to move further out.
How will Austin’s housing market be in 2025?
The average rental rate is around $1,394, with 43 days on the market. Multifamily housing is overbuilt, causing a 7% decline in rents. 30% of renters in Austin commute from Bexar County.
What is the economic growth rate of Austin?
Austin’s real gross domestic product (GDP) will be 2.2% in 2025. Our regional economy is growing faster than any other major economy, and Texas boasts the 8th largest economy in the world.
How does Austin’s economy compare to other Texas cities?
Austin’s real gross domestic product (GDP) will be 2.2% in 2025. Our regional economy is growing faster than any other major economy, and Texas boasts the 8th largest economy in the world.
What industries are driving Austin’s economic growth?
The sectors contributing to Austin’s economic expansion include professional and business services, government, and education and health services.¹ The key sectors for 2025 to watch are artificial intelligence (AI), renewable resources, and industrial development.
Is Austin’s population growth affecting the local economy?
Significant population growth has increased demand for housing, infrastructure, and jobs.
What is the outlook for Austin’s economy in 2025?
AI, renewable resources, and industrial developments will be sectors to watch, while uncertainty will loom due to tariffs, energy prices, and geopolitical trends.
How are national economic policies impacting Austin’s economy?
Uncertainties surrounding national policies, including potential changes in tariffs and immigration, could impact Austin’s economy.
What questions do you have about Austin and your home-buying journey? Contact Joel today to learn more!
¹ Source: Federal Reserve Bank of Dallas
