Tesla’s new factory ignites an already hot housing market

In today’s Daily Download episode, HousingWire covers Tesla’s plans to build a $1.1 billion factory in Austin, Texas.

For some background on the story, here’s a summary of the article:

Electric car giant Tesla unveiled plans last week to build a $1.1 billion factory in Austin. Rumors had swirled for months prior that it might be happening, but last week, the news became official.

In building the factory on some 2,100 acres, Tesla has said it could hire 5,000 people over time.

The news follows 2018 and 2019 announcements by tech giants Apple and Google that they too plan to hire thousands of people in the Austin area in coming years. 

While the jobs created by Tesla will definitely only fuel the city’s economic boom (Austin has ranked on numerous lists in recent times, including coming in at No. 3 on the Milken Institute’s Best-Performing Cities 2020 report), they will come at a lower salary than those created by the likes of Apple and Google. According to the Austin Business Journal, the factory could employ about 5,000 workers with an average annual salary of $47,147 and a median salary of $68,303.

Still, the new factory combined with a continued influx of people moving from both coasts – which has only reportedly increased in the wake of the COVID-19 pandemic – will no doubt lead to an even tighter housing market. And while Austin’s median home price may be significantly lower than say, New York or San Francisco, it’s been on such a rise that many have questioned whether the city remains affordable by Texas standards.

Following the main story, HousingWire covers House Speaker Nancy Pelosi’s scathing critique of the Trump administration’s decision to overturn an Obama-era fair-housing rule, and a report from the Commerce Department that indicates sales of new houses jumped to a 13-year high in June.

The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.

HousingWire articles covered in this episode:

• News of $1.1 billion Tesla factory revs up already hot Austin housing market
• Pelosi calls out Trump’s repeal of Obama’s fair housing rule
• Sales of new houses jump to a 13-year high