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Among cities in Texas with populations greater than 25,000, Kyle was ranked No. 2 for homeownership in a recent study by a national consumer advocacy website.
NerdWallet announced in January the results of its study, which used U.S. Census data from 2010 to 2012. In the same month, the Austin Board of Realtors reported that Kyle saw a 30 percent bump in home sales from 2012 to 2013.
Austin-area home sales in 2014 are off to a solid start with a 4 percent gain from January 2013 to January 2014, according to an Austin Board of Realtors news release.
But the organization also said the housing inventory in Buda and Kyle is at an all-time low.
In December 2013, the inventory for Buda and Kyle was two months, meaning the supply would be depleted in that amount of time if no homes were added to the market. An inventory of 6.5 months is ideal for balanced supply and demand, according to the Real Estate Center at Texas A&M University.
"In addition, [the] sales volume in December 2013 for Buda and Kyle was up 21 percent compared to December 2012, while active listings stayed about the same (242 in December 2013 and 246 in December 2012)," said Bill Evans, Austin Board of Realtors president. "That indicates that demand for homes has continued to grow, but the stock of available homes has stayed the same, creating more competition for properties in the market."
The inventory for Buda and Kyle matches the inventory for the Greater Austin area. With greater competition for fewer listed homes, prospective homebuyers looking to locate in Austin proper may decide to move to Buda or Kyle if price is a deciding factor, Evans said.
In December 2013, the median sales price for a home in the Greater Austin area was $226,000, while homebuyers in Buda and Kyle paid a median price of $169,775, he said.
"Many buyers weigh the benefits of cost savings over increased commute times," Evans said. "If traffic conditions improve and it becomes easier to commute to Austin, however, it is possible more buyers could be drawn to the [Kyle and Buda] area."
Affordability was one of the primary reasons NerdWallet rated Kyle second in the state in terms of homeownership.
Homeownership costs in Kyle account for 23 percent of the median household income, according to the report. The city is among the three lowest in the state in that category.
With rapid population growth, the city has been a hub for economic development.
In October 2009, Seton Medical Center Hays opened, and major retailers and restaurants followed suit. In 2015, a Walmart store near the medical center is expected to open.
The economic development in the city stimulated more population growth, Realtor Bruce King said.
"All of a sudden, here we are with all these new people moving in," he said. "We're expected to have a whole bunch of people move in here by 2020, and the growth is going to be crazy."
King, who is with Prosper Properties, a Buda-based realty company, described the low interest rates, healthy home inventory and employment opportunities in Kyle as a "perfect storm" for people to move to the city.
King said he was drawn to the real estate profession when Seton Hays arrived, he said.
"I knew we were going to grow and recognized it'd be a good community to live in," King said.
