Boomerang Buyers Dominate Central Austin Home Trends

By DeeinAustin™

Spring is the time of year that real estate really heats up and 2008 is no exception for Austin real estate.  What's different this year? A phenomena that I call "Boomerang" Home Buyers. Boomerang Buyers have a big effect on new construction and resale homes in Central Austin.

IS YOUR FRIEND MOVING BACK TO AUSTIN?  THEY MAY BE A BOOMERANG

• Boomerangs are 30-somethings who left Austin to pursue a career, Ivy-league or out-of-state university, or other endeavor.
• They now have a small family or career change and want to come back.
• They usually have 20-40% CASH to put down.
• They like the Austin climate, friendly nature, unique atmosphere, family values, and lower cost of living.
• They'd settled in Seattle, Chicago, Michigan, Iowa, Los Angeles, New York, and other international cities, so often have eclectic taste.

Simply put, Boomerang Buyers want to be closer to the friends, family, and city they now miss.

BOOMERANG BUYERS WILL DOMINATE CENTRAL AUSTIN HOME TRENDS IN 2008

Boomerang Buyers came back to dominate home sales in Downtown, SoCo (South Congress), SoLa (South Lamar), Hyde Park, and East Central Austin.

They want to walk or bike to shopping areas, be close to parks and greenspaces, enjoy unique homes, prefer mid-century modern or post-modern construction, and avoid homeowner associations (HOAs).

TOP FEATURES BOOMERANG BUYERS WANT IN YOUR CENTRAL AUSTIN HOME

Inside the Boomerang Home

1. Two-to-Three bedrooms plus an Office with an open floor plan for under $300-450,000.
2. Wood floors such as bamboo and Brazilian Cherrywood.
3. Modern cabinets, custom tile work, ample space in Kitchens and Baths. 
4. Modern colors and/or an accent wall in the main living with lots of natural light.
5. Modern fixtures, lighting, and amenities such as walk-in closets and steam showers.

Outside and General Home Features

1. Gas utilities, green-rated construction, and energy-efficient appliances.
2. Sustainable landscaping such as succulent plants and crushed granite.
3. At least a single-car garage or covered parking.
4. Fenced yards with an outdoor living space, balcony, or patio.
5. Ability to upgrade, add a bed or bath, and have a garage apartment or studio.

AVOID MONEY-WASTING "UPGRADES" THAT DON'T WORK

Goofy light fixtures, floor lamps, and decorations that you see for dorm rooms in IKEA and Target. Stage the with modern furniture and decorative accents without going overboard. Above-sink bowls are hit or miss.

Rethink granite (especially granite tile), marble, and Saltillo tile, which are overused and aren't modern.

The Boomerang phenomena is not only seen in Austin, but other areas of the country. Be mindful that Boomerangs aren't always 30-somethings (Generation X). Baby Boomers are also moving back, but often have different needs.

Bottom line, when marketing your home or doing upgrades in central areas, keep this demographic in mind for the biggest return and fastest home sale.

IF YOU LIKED THIS STORY, CHECK OUT THESE RESOURCES!

• Luxury Condos on East Riverside Coming in 2009.
• 5 Quick and Easy Green Fixes You Can Do Today.
• Green Events to Hit Austin in March.
• Best Modern Homes Blog in Austin and Second Best Modern Homes Blog.
• Latest market update: North and South Austin are HOT.
• Annual Austin Real Estate Update: Winners and Losers in 2007.

Modern Interiors Photo Credit: Brukoff Design.

Comments

[Santa Fe Real Estate]

I like the term - we've seen these same kinds of buyers in certain areas of our market too, but never thought of them as "Boomerang Buyers".

[Dee Copeland]

Thanks, Santa Fe. Your market is often similar to ours, but I'd wonder if they want the same finishes.

Hands down, the homes that are selling the fastest and for more money are the ones that incorporate these features. I noticed the phenomena the past few years and it hasn't slowed much. In fact, it seems that the mortgage market change increased this since they don't have problems qualifying.

[Lance, Houston Real Estate Expert]

Dee,

What a great post...! So detailed.

Austin does have a cosmopolitan feel... actually, The Woodlands is building up a similar sort of reputation here just North of Houston.

One of our new developments - East Shore - is in fact very European in many ways.

Lance.

[Dee Copeland]

Thanks Lance! I think people don't realize that each post takes at least 2 hours. Most take 3-4 and some market updates accounted for 8 hours of time.

I really liked this post because I don't think I've seen any resources really sum up who these buyers are and how to handle the trend. I did want to note that many Boomerang Buyers even keep an Austin cell phone number. Pretty cool!

[Clara Spriggs-Adams]

Dee,

Thanks for investing enormous amounts of time to keep us informed. Your info is always up to date and relevent.

Clara

[Erin Buck]

Very interesting. I never knew there was a term for it! Thanks!

[Dee Copeland]

hi Erin! Actually, I hadn't heard the term either. It came from a "Generational Selling" class that I took.

Generation X was called the 'Boomerang Generation' because a large percentage would leave the "nest" and come back to live with their parents while they were either in college or moving to the next stage of their careers.

When I thought about describing these buyers, it seemed like they were leaving the 'nest' of the city they loved, only to come back once they grew up. :-)

[Austin Urban Grid]

I like this term "Boomerang Buyer" and the description. So may types of buyers out there and profiles like this allow the real estate industry to get a better understanding of what makes certain groups tick.

That way realtors and developers can offer specific concierge services to please these groups.

[gregkameron]

Spring is the time of year that real estate really heats up and 2008 is no exception for Austin real estate. Boomerang Home Buyers have a big effect on new construction and resale homes in Central Austin.