Safety First

Newsletter

written by - richard edison

February 2, 2024

Austin, Texas – In a world that seems to have gone completely mad, every now and again we must stop to reevaluate our priorities in life. This exercise always returns to one very basic life concept – Safety. You want to be safe, you want to live somewhere safe, you want your family safe, and you want your investments safe. On the roller coaster that is the U.S. and international markets, the concept of safety can be difficult to understand and seemingly impossible to navigate.
 
This past Wednesday, the Dow Jones Industrial Average had its worst day yet in 2024, falling by over 300 points. On Thursday, it earned all of that back and more. I have spent 25 years managing assets, trading markets, and teaching others how to trade markets, and I can tell you this: Nobody knows where things are going next. However, there is one thing that I pay particular attention to when deciding where to put my money – Demographics.
 
The Austin metro is the fastest-growing area in the nation for the 12th year in a row, according to the Austin Business Journal. This means that Austin is working against a national trend. Of the 800+ cities in the U.S. with more than 50,000 residents, 53% have lost population since 2020, according to the ABJ. People across the country are leaving the cities for the suburbs. However, in Texas, both our cities and our suburbs are exploding with growth. As you learned in our December 2023 newsletter, Houston, Dallas and Austin are expected to be the three largest cities in the country by 2050, according to MoveBuddha.
 
The city of Austin had an estimated population of 975,000 in 2022, according to the U.S. Census Bureau. The expectation by MoveBuddha is for the Austin metro to grow to 22 million people by 2050. Do the math. Follow the demographics. It’s a simple strategy.
 
At Next Frontier Real Estate Holdings, we find the best properties, negotiate the best prices, and buy them in our funds for cash. We have no legacy assets, and we carry no debt. To reiterate, our target assets include raw and undeveloped land, industrial hubs, data centers, and medium to large size multifamily developments in Central Texas. These are the sectors that will continue to experience growth over the long term as large corporations, their employees, and American families continue to move to the region. We are seeing promising opportunities unfold daily, as the effects of crippled capital markets permeate property values. 
 
We are incredibly excited for the road ahead, and we hope that you will consider joining us on our journey into the Next Frontier of Real Estate Investing.