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Austin Real Estate Data Analysis

Executive Summary

Real Estate data was collected for the City of Austin Texas. The datasets consisted of Airbnb rental, and Zillow sales data over the time period of January 2018 until January 2021. With this information an overview of the type of dwellings are on the market and where someone looking to obtain shelter in the area would be able to invest.

Analysis of the datasets indicates that the housing market in Austin has been undergoing growth for at least the past three years. Most of that growth has come in the form of single-family detached housing at the expense of multifamily, townhouses, condos, and other housing types. This is readily seen in the growth of the sale price of housing over the three-year period that was analyzed. Austin Texas is a relatively large city with fifty-eight zip codes denoting city areas and are used for categorizing parts of the city. These areas vary greatly by housing price, dwelling type, rental availability, and safety. Some areas like 78753 have very high crime incidence rates which do not seem to impact the price of home sales but they are contingent on the type of housing stock. More crime exists in areas with more multifamily housing which may be due to the density of the neighborhood with more people leading to higher crime reporting.
Single-family detached housing makes up the largest share of homes for sale in Austin according to the Zillow sales data at ninety-three percent. These homes have a large distribution of ages centered around fifteen and forty years of age. However, sales of newer construction have picked up over the past three years. The average price of a single-family detached home in Austin is $518,521 with a max price of $13,500,000 and a min price of $5500 Major opportunities can be had using your home as a rental with Airbnb which increases the investment value of the property. The majority of homes rented with this method are single-family detached which mirrors the housing stock in the area. Most of the rental types are private homes at sixty-three percent of rentals with private rooms and shared rooms making up the rest of the properties. This analysis demonstrates that the Austin housing market has opportunities for investment. Future research should be focused on creating machine learning models using features from the data that predict the sales price and the likelihood of the property becoming a vehicle for Airbnb rentals. Furthermore, interactive maps may be created with the data to provide a quick way for an end-user to consume the analysis and make decisions about the property purchases.

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