Austin Real Estate Market vs. Blue-Chip Stocks – How Do They Compare?
September 5, 2018 | Front Porch Realty
How Does Austin Real Estate Market compare to Blue-Chip Stocks?
We hear about Austin Real Estate market and how valuable is has become. But just how valuable?
The total value of Austin’s residential real estate market reached $222 billion dollars, according to Aug. 28th report by lending tree. Austin’s real estate market has now surpassed the market cap of big name Blue-Chip stocks such as Walmart , Coca-Cola, Netflix Inc, and PepsiCo Inc.
Austin Real Estate market, how valuable is it?
That’s only slightly larger than the last evaluation of consumer good company Procter & Gamble Co. (NYSE), with a total market capitalization of $2o5 billion, which, is just behind Intel Corp. (Nasdaq) at $222.9 billion, all based off Friday (8/31/18) afternoon share prices.
Austin’s residential real estate market totals $222 billion
The worlds first trillion dollar market capitalization was just achieved by Apple, Inc. , as a comparison, Apple Inc is more valuable than all but the most expensive housing markets in the nation, only New York at $2.5 trillion, Los Angeles at 2.2 $trillion and San Francisco at $1.5 trillion , break the 13 digit mark.
The most expensive housing markets in the nation
The market capitalization is calculated by multiplying the number of outstanding shares of a company stock by its share price. It’s a good indication of the publics perceived value of a company, although it doesn’t give the total equity value of the company because it ignores things such as preferred share that aren’t available on the open markets.
Los Angeles at 2.2 $trillion and San Francisco at $1.5 trillion
Real estate market capitalization is inherently different from previously mentioned stock market cap. Let me offer a very over simplified break down:
Say you moved to an island that has 5 houses on it. You and your friends buy 3 of the houses for $100k each. The two other home owners, hearing their houses MIGHT also be worth $100k , decide to list their homes.
Now the islands real estate market cap is $500k, but only $300k was actually invested or spent in the market.
The Austin real estate market capitalization is a projected price including the houses still on the open market.
Austin’s real estate market cap totaling $222 billion is also about as valuable the entire GDP of Vietnam, estimated at $220 billion in 2017.
Austin real estate market ranked No.22 in the LendingTree report, which came in between Tampa, Florida and Charlotte, North Carolina.
Included in the report Americans own a combined $28.4 trillion of residential real estate in the United States, data sourced from over 155 million properties.
Thanks for reading our article about the Austin real estate market vs blue-chip stock prices! If you found this interesting be sure to share it with a friend!
We offer FREE home evaluations and consultations for your Austin Real Estate Needs. We also offer competitive pricing for home listings! Find out more today by calling 1 (512) TWO NINE THREE -7539 or by Contacting Us Below.
