This article was previously published April 21, 2021 on the Fredericksburg Standard-Radio Post website here.

Amid the pandemic and political differences, droves of people from big cities are buying land in rural Texas communities. And Fredericksburg as well as the rest of Hill Country, is becoming a favored destination.

A total of 552,707 acres in Texas was purchased for a record $1.69 billion in the latter part of 2020, according to research conducted by the Texas Real Estate Research Center.

Mimi Bartel, associate broker at Century 21 the Hills Realty and co-owner of Property Management Services, said there are two main, pandemic-driven reasons people are leaving urban parts of Texas in favor of cities like Fredericksburg.

“People have learned they can work from home. They can telecommute,” Bartel said. “And then the second reason is that they are trying to get away from the cities where there’s such a large concentration of people and get to an area that’s maybe safer.”

Bartel said social and political tensions in bigger cities have also been a motivating factor in this migration.

“Another reason people are coming here is because of the social unrest in some of the cities. Again, that has to do with moving to a safer environment,” Bartel said.

A safe haven

Dennis Kusenberger, broker and owner of RE/MAX Town and Country, said his clientele are looking for properties in the Texas Hill Country for political reasons, as well.

“A lot of the calls that we get are from out of state, especially California, a couple from Washington state and Oregon,” Kusenberger said.

Kusenberger said Gillespie County has always been a safe haven, one that people seem to need now more than ever. A lot people moving to the Hill Country are from other states and are seeking refuge from communities they no longer feel at home in.

“There are a lot of people moving here from out of state, a lot of people moving from large cities to get to a Fredericksburg lifestyle, where it’s slower, it’s more conservative, it’s just not the hustle of the big city life,” Bartel said.

Market drivers

Bartel referenced statistics compiled by the Central Hill Country Board of Realtors that showed this increasing trend in the city of Fredericksburg.

“Last March 2020, we had 19 sales within the city of Fredericksburg,” Bartel said. “And the average sales price was $410,223. This year, during the month of March, we had 32 closings in the city of Fredericksburg and the average sales price was $572,512, or a 39% increase.”

By widening the scope to include all of Gillespie County — ranches and large parcels of land, the increase is steeper.

During March 2020, there were 33 closed sales in Gillespie County with an average sales price of $451,275. In March 2021, 58 properties were sold in the county. The average sales price was $777,064, or a 72.2 percent increase according to a snapshot compiled by the Texas Realtor Data Relevance Project.

Bartel said the realty market “has exploded since the pandemic.”

Kusenberger said the recent increase is not the end for Fredericksburg’s trend upwards.

“I don’t think we’re seeing the top of the market at all,” Kusenberger said. “Fredericksburg has always been a destination.”

Rental popularity

In recent years, the attraction of Fredericksburg has drawn hordes of tourists, opening up a market for short term rentals and Airbnbs in the area.

“Another thing that I have really had a run on here lately is short-term rentals,” Kusenberger said. “It seems like every other call we get, they’re wanting a home within walking distance of Main Street that they can use for short-term rental, Airbnb.”

Bartel, however, said more people are looking to move to Fredericksburg permanently now that they have the ability to work from home.

“I think that we’re seeing an influx of people making Fredericksburg as their permanent home,” Bartel said.

The increase in demand for property in rural parts of Texas, including the Hill Country, will increase property prices.

“There’s more people looking than we have properties to fill their needs,” Bartel said.

Limited supply

Kusenberger said the options for people wanting to buy in the Hill Country are very slim. He said the old expression “they’re not making any more land” has “probably never been truer than it is right now.”

The prices of property continue to grow due to demand as well as several other factors influenced by the pandemic.

“The prices are escalating not only because of supply and demand, but because building materials have escalated in price,” Bartel said. “And so that is driving up the cost of building, never mind, the real estate, that dirt that is under that construction.”

Bartel said a way that Gillespie County could become more affordable is by getting the private sector involved. Bartel also said federal housing grants could also help.

“Everybody wants a safe and secure home,” Bartel said. “That is critical to the quality of life and it’s difficult to get right now."