How We Invest
Our Focus and Process
Whilst we have worked in many areas of residential real estate, our biggest focus is the building and selling of mid-market spec homes. We pride ourselves on outstanding design, quality, and now health features, and we like to move quickly. We mitigate risk by investing in a variety of sub-markets. Right now, for example, we are building homes that will sell for $450k to $2.2m (and most in the $600k to $1.3m range) across 3 distinct areas of Austin.
We run very detailed due diligence systems when new lots are brought our way by our trusted team. We also conduct market comparisons using the MLS (Multiple Listings Service) system and a plethora of local market data, erring on the side of caution with our forecasts. Only when even an extremely pessimistic outcome would still yield a profit do we make a purchase - we are intentionally very picky! Then we purchase, design, build and sell beautiful spec homes, to a high standard, and ever faster (we’re working on an in-house project named Project Warp Speed… obviously).
The Opportunity - Austin, Texas
As of early 2025, you’ve probably seen negative headlines about Austin’s housing market for a while, but a closer look at the data reveals a story of balance and promise.
Population Growth: From Strain to Sustainability
During the boom years, Austin’s rapid growth peaked at around 250 new residents per day—a pace that strained the city's infrastructure. Today, that influx has moderated to about 125 new people daily, a far more manageable rate that supports long-term, sustainable growth.
Home Price Trends: From Overheated Peaks to Stable Fundamentals
Pre-Pandemic: In 2019, median home prices were around $370,000.
Pandemic Surge: Prices soared, climbing well above $500,000 at the height of the pandemic frenzy.
Normalization: By 2023, the market corrected, and prices stabilized at approximately $450,000—a level that reflects long-term fundamentals. Now, in early 2025, this stability continues, confirming that today’s home prices are exactly where they should be based on historical trends.
Housing Shortage: A Catalyst for Future Appreciation
Data from the City of Austin’s Open Data portal (as of early 2025) shows that new residential construction permits have dropped to levels last seen in 2011, even though our population is approximately 50% greater now.. This pullback in new permits means that future inventory will tighten, setting the stage for price appreciation and creating strong opportunities for new builds.
In Summary
While sensationalist headlines focus on short-term volatility, the underlying data tells a more compelling story:
Balanced Growth: A moderated pace of 125 new residents per day means sustainable expansion.
Stable Prices: After an over-exuberant spike above $500,000, the market has settled into a stable, fundamental-driven range of about $450,000.
Tightening Supply: Reduced construction permits promise future scarcity that will bolster home values.
These trends combine to create a robust, investor-friendly environment—positioning Austin for long-term, stable growth and making it an attractive opportunity for quality new construction, and explaining our bullishness about the area.
Brownstone Experience
Since 2014, Brownstone, its affiliates and its team have acquired, developed, and disposed of over 150 single family homes and over 100 doors of multi-family property for a gross sales value of approximately $85m. This has been a blend of rentals, fix-and-flips and new construction, across the US, plus some in the UK.
Our Partners
Environmental, Social and Governance
We've had Environmental, Social & Governance principles at our core, long before we were aware of the acronym. Our homes all adhere to environmental standards as well as including a variety of health and eco enhancements, driven by our CEO’s passion for health. Examples are learning thermostats, efficient watering systems, water filtration, “clean” paints, advanced filters, healthier lighting, electric vehicle charger wiring, enhanced windows and doors, healthy insulation and more.
This is along with strict policies regarding equality and humanity, a Results Oriented Work Environment, and the development of a model for giving a percentage of annual profits to charitable causes.
We like to do good and treat people well because we feel it is the right thing to do, so we unashamedly feel good about our actions.