IXI Market Insights in Action

With rising income, fewer mortgage delinquencies, and decreasing auto and bankcard debt, Austin, Texas is on the road to recovery. This economically diverse city is positioning itself to once again lead the nation in growth.

• Financial Assets: Deposit accounts in the Austin, TX metro area grew by $1 billion throughout 2010. Households shifted their preferences among deposit account types, moving $1.7 billion out of certificate of deposit accounts into savings accounts (a $1.45 billion increase) and money market deposit accounts (a $0.36 billion increase).
• Income: Austin boasts a diverse economy anchored by government activities, education, and the high tech software and semiconductor sectors. Average household incomes rose by 11% over the 12 months ended December 2010, ending the year at $112,520, ranking Austin the 6th highest income metro area in the nation.
• Mortgage: The homeownership rate in Austin is 57.4% and 73.4% of those owner-occupied homes are financed with a mortgage. First mortgage balances rose by nearly $500 in 2010 to an average of $145,170. Serious delinquency rates, defined as loans 90 days or more past due or in foreclosure, have declined 25% since peaking in February 2010 on first lien mortgages, and stood at 2.4% in June 2011.
• HELOC: Among Austin homeowners with a home equity line of credit, average HELOC balances increased by $2,180 between December 2009 and December 2010 to $52,945.
• Student Loans: The average total student loan debt among U.S. households with at least one student loan was $29,180 in 2010. For Austin households, the average total student loan debt totaled $28,882, up $1,450 from a year earlier, while the average individual student loan balance decreased by $160 to $8,420.
• Auto and Bankcard: Households in Austin decreased total auto tradelines by $1,450 during 2010 and dropped outstanding bankcard balances by $420, consistent with a national trend of deleveraging in consumer credit.

Austin’s heavy focus on technology industries and education services and low debt and delinquency rates will continue to generate strong growth for the area in the near term, well ahead of the national economy.