On July 22, 2020, Tesla officially announced they will be calling Austin home for their all-new Gigafactory. With an estimated cost of roughly $1.1 billion dollars, the Gigafactory will be located in the Del Valle area (far east Austin) along the Colorado River. Once finished, the factory will create Tesla’s line of electric pickup trucks deemed the Cybertruck, alongside their consumer car, the Model 3.
What Does This Mean for Austin?
Tesla is estimating the factory will need to be staffed with a crew of 5,000 new employees. This new influx of jobs could be a huge draw for people looking to make the jump from California to Texas, or skilled locals interested in a career-move to one of the top companies in Silicon Valley. Another thing to consider is the renovation of the space around the factory. Elon Musk, CEO of Tesla, has been quoted on an investor’s call regarding the new location to have said, “It’s right on the Colorado River, so we’re actually going to have a boardwalk, a hiking-biking trail. It’s going to basically be an ecological paradise. Birds in the trees, butterflies, fish in the stream, and it will be open to the public as well.”
What Does This Mean for the Local Real Estate?
By looking at similar scenarios of other Silicon Valley companies that have moved in and built up new headquarters, we can only guestimate what kind of effect the new Gigafactory is going to have on the Austin real estate market. We are expecting properties around the campus itself to be bought out and either built up into more suitable living for workers or converted into part of Tesla’s campus. The property value in the surrounding area should also go up (based on the Apple Campus construction), but of course, this speculation is hinged on Tesla’s follow-through. Construction on the campus is estimated to finish sometime in May of 2021, which is when we can expect to see the first real signs of change in the market due to Tesla’s arrival.
As Austin continues to grow and attract more companies like Tesla, we fully expect the market to expand with it.
