Housing Prices Boom in Area Surrounding Tesla's Gigafactory in Texas

Housing prices surrounding Tesla's new Austin-based Gigafactory are increasing as Tesla also prepares to move its corporate headquarters to Texas. In September, home prices in Travis County, Texas, where the factory will be built, were up 53.7% compared to last year, selling for a median price of $363,000, according to Redfin. That's more than a 26% increase compared to Austin, Texas as a whole. Tesla confirmed the new factory's location in July 2020 after a bidding process involving several other southern cities, Insider reported. Tesla was offered $65 million in tax rebates over 10 years to take over a concrete plant. The plant will become a 5 million-square-foot factory for Tesla's Cybertruck, Semi truck, and Model 3 and Y. Tesla said plans to hire up to 5,000 workers at a starting wage of $15 an hour for many of the low-skill manufacturing roles, according to Insider. Tesla CEO Elon Musk made the announcement that the company would relocate its headquarters to Texas at its annual shareholder meeting on Thursday. Homes for sale in the areas surrounding the plant have already started listing their proximity to the factory. A four-bedroom, three-bathroom house for sale in Austin, Texas is advertising a "great location- 13 min from Tesla," on Redfin. "I think there will be a premium on being close to Tesla HQ, especially since a portion of engineering jobs will have to be in person," said Daryl Fairweather, Redfin's chief economist, told Austin's local news station KXAN in an email. Musk has already moved himself to the Lone Star State after fighting with California over its coronavirus restrictions, Insider reported. Musk already moved his charitable foundation to Texas, too, further fueling speculation that a new factory would soon follow. SpaceX, Musk's other venture outside of Tesla, also has a launchpad in Texas.