Is the Austin Market Recovering? Insights into Price Changes and Market Dynamics The Austin real estate market has undergone significant changes in recent years, highlighted by a notable decrease in the median list price for homes. This trend is evident when examining data from May 2022 to December 2024, showcasing a dramatic shift in the market dynamics. In May 2022, the <a href="https://teamprice.com/residential-price">median list price for homes in the Austin</a> area reached a peak of $539,900. This marked a high point in the market, reflecting robust buyer demand and limited inventory that characterized much of 2021 and early 2022. However, by December 2024, the median list price had declined to $425,000, representing a substantial drop of $114,900, or 21.3%, over the 31-month period. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241223122457.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" width="" height="" data-size="," data-align="none" data-percentage="auto,auto" data-index="0" data-file-name="image.png" data-file-size="297154" data-origin="," style=""></figure></div> To better understand this trend, it is important to contextualize it within broader market conditions. The Austin real estate market experienced unprecedented growth during the years of 2020 and 2021, driven by factors such as remote work flexibility, a surge in population migration to Texas, and historically low mortgage rates. These factors contributed to a sharp <a href="https://teamprice.com/residential-price" class="on">increase in home prices</a>, culminating in the 2022 peak. The subsequent decline in median list prices can be attributed to a combination of factors. Rising interest rates beginning in late 2022 played a pivotal role in cooling the market, as higher borrowing costs reduced affordability for many buyers. Additionally, increased inventory levels throughout 2023 and 2024 helped to alleviate the supply-demand imbalance that had previously driven prices upward. This trend is further illustrated by seasonal fluctuations in pricing over the years. For instance, during the first quarter of 2024, the median list price hovered around $459,900 in February and $479,900 in March, before settling at $425,000 by December. These monthly variations highlight the typical ebbs and flows of the market, influenced by factors such as buyer activity and economic conditions. Despite the overall decline, the Austin real estate market remains dynamic. While the drop in prices may be concerning to sellers, it presents potential opportunities for buyers. A 21.3% reduction in the median list price has improved affordability, making homeownership more attainable for those who were previously priced out of the market. The question of whether the Austin market is crashing or recovering depends on perspective. The data suggests that the market has shifted toward stabilization after a period of extraordinary growth. Indicators such as declining prices, improved inventory levels, and fewer multiple-offer scenarios point to a market that is neither collapsing nor overheated, but rather adjusting to more balanced conditions. For those considering entering the Austin real estate market, whether as a buyer or seller, understanding these trends is crucial. Buyers can leverage the current conditions to negotiate better deals, while sellers may need to adjust expectations and pricing strategies to align with the evolving market landscape. In conclusion, the Austin area has seen a significant recalibration in median list prices from their peak in May 2022 to December 2024. This shift reflects broader economic changes and local market adjustments. As the market continues to evolve, staying informed about these trends will be essential for making sound real estate decisions.&nbsp;

Explore how Austin's real estate market has evolved with a 21% drop in median list prices from 2022 to 2024. Understand key factors influencing the market, from interest rates to inventory levels, and what it means for buyers and sellers

Is the Austin Housing Market Crashing or Stabilizing? Key Price Trends Explained

Understanding Austin Area Real Estate: Sellers, Buyers, and Neutral Markets December 22, 2024 : The Austin area real estate market continues to be a dynamic landscape, offering insights into both opportunities and challenges for buyers, sellers, and investors. Recent data underscores the variety of market conditions across the top 30 cities in the Austin area, categorized by the months of inventory available—a critical measure of market balance. Understanding these distinctions is vital for anyone navigating real estate in this vibrant region. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241222112737.png" alt="" width="" height="" style=""></figure></div> In December 2024, the Austin area showcased a spectrum of market types, from sellers' markets to buyers' markets, defined by months of inventory. A sellers' market, characterized by less than 4.9 months of inventory, signals high demand and limited supply. Austin, for example, reported 4.1 months of inventory, aligning with its reputation as a competitive market. Median prices in Austin stood at $599,000, with an average active listing price of $984,704, underscoring the city's strong position in the regional market. In contrast, buyers’ markets, with more than 7 months of inventory, were observed in cities such as Burnet and Dale. Burnet, with 9.42 months of inventory, had a median price of $529,500, reflecting more negotiating power for buyers. Similarly, Dale exhibited 11 months of inventory, further emphasizing its status as a buyers’ market. These conditions highlight opportunities for buyers looking to secure properties at potentially favorable terms in less competitive markets. Neutral markets, where inventory ranges from 5 to 6.9 months, were represented by cities such as Bastrop and Driftwood. Bastrop, with 5.8 months of inventory, had a median price of $424,900. Driftwood, known for its luxury appeal, showcased a median price of $1,257,500 and exactly 6 months of inventory, indicating a balanced environment between buyers and sellers. Georgetown and Cedar Park are other notable examples of sellers’ markets. Georgetown reported 3.28 months of inventory, a median price of $509,545, and a significant volume of active listings, illustrating its steady demand. Cedar Park, with just 2.09 months of inventory, reflected one of the strongest sellers' market conditions in the area, with median prices at $499,999.&nbsp;Cities like Hutto and Pflugerville also demonstrated robust sellers’ markets, with 3.25 and 2.86 months of inventory, respectively. Hutto’s median price reached $399,990, while Pflugerville’s stood at $435,000. These cities remain attractive for those seeking homes at relatively moderate price points compared to Austin. On the other hand, cities such as Smithville and Spicewood leaned toward buyers’ markets. Smithville’s inventory was at 7.36 months, with a median price of $341,900. Spicewood, with 10.08 months of inventory and a median price of $862,500, provided opportunities for buyers interested in higher-end properties with more time to negotiate.&nbsp;The data also revealed shifts in pricing dynamics across the region. Cities like Manor and Kyle showed competitive conditions with inventory levels at 3.7 and 3.33 months, respectively, while median prices were $390,103 and $363,945. Price trends across these cities reflect the nuanced nature of the Austin area market, where local factors heavily influence demand and supply. Overall, the Austin area real estate market demonstrates a diverse range of opportunities, with each city offering unique conditions. Whether navigating a competitive sellers’ market or exploring the advantages of a buyers’ market, understanding these dynamics is essential for success in real estate.&nbsp;If you are a real estate agent or thinking of becoming one, please reach out. We are expanding our team and hiring new and experienced agents. No license is required to schedule a meeting with me, Dan Price, Broker. You are welcome to call me directly to discuss opportunities at 512-963-3768.&nbsp;

Latest trends in the Austin area real estate market with data-driven insights from December 2024. Learn about market conditions, median prices, and opportunities for buyers, sellers, and agents across 30 cities

Austin Area Real Estate Market Update: December 2024 Insights

The Rising Cost of Homeownership in Austin: Analyzing Housing Affordability Trends (2000-2024) December 19, 2024 : <a href="https://teamprice.com/affordability">Austin housing affordability</a> has changed dramatically over the past two decades, with mortgage payments rising significantly in recent years. This trend has made homeownership more expensive for many buyers in the Austin area, especially when compared to historical norms. The data from 2000 to 2024 reveals key patterns in monthly mortgage payments, interest rates, and affordability ratios, offering insights into why Austin homeownership is becoming increasingly challenging. In 2000, the average monthly mortgage payment in the Austin area, including principal, interest, taxes, and insurance (PITI), was around $1,195. From 2000 to 2006, PITI steadily increased, reaching an average of $1,285 by 2006. This period saw relatively stable interest rates, with the median rate hovering between 2.76% and 3.38%. However, the housing market crash of 2008 temporarily reduced these payments. In 2009, the average monthly PITI dropped to $1,246, reflecting lower home prices and interest rates in Austin.&nbsp; <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241219032647.png" alt="" width="" height="" style=""></figure></div> The years following the crash saw mortgage payments fluctuate. From 2010 to 2015, monthly PITI in Austin ranged from $1,236 to $1,627, showing moderate growth. Interest rates during this period remained low, between 3.37% and 4.03%. By 2016, PITI reached $1,706, reflecting an upward trend in Austin home prices. This pattern continued, and by 2019, the average PITI in the Austin area was $1,954. Despite slight declines in 2020 due to lower interest rates, mortgage payments began to rise sharply in 2021. In 2021, monthly PITI surged to an average of $2,686, with some months exceeding $2,700. This increase coincided with rising Austin home prices and interest rates nearing 5%. In 2022, affordability hit a new low, with monthly mortgage payments peaking at $3,742 in June. The average PITI for the year was $3,476, driven by soaring Austin-area home prices and mortgage rates that exceeded 5.5%. Affordability ratios also reflected this shift. In 2022, PITI accounted for 47.19% of median household income, a sharp increase from the 26-30% observed in the early 2000s. The trend continued into 2023 and 2024, with monthly PITI in Austin remaining high. In 2023, the average mortgage payment was $3,443, and in 2024, it hovered around $3,381. Interest rates stayed elevated, with the median rate around 4.54% in December 2024. Although these figures represent a slight improvement from the 2022 peak, they still indicate significant affordability challenges compared to historical levels in Austin. Over the past 24 years, the median sold price-to-income ratio in Austin has also increased. In 2000, the ratio was 2.76, meaning a home’s median price was 2.76 times the median household income. By April 2022, this ratio peaked at 5.75, highlighting the growing gap between Austin home prices and incomes. As of December 2024, the ratio stands at 4.54, above the historical average of 3.74. This indicates that despite recent improvements, Austin home prices remain disproportionately high compared to household incomes. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241219032728.png" alt="" width="" height="" style=""></figure></div> Year-over-year changes in PITI show how volatile the Austin housing market has become. Between 2021 and 2022, monthly mortgage payments increased by over $800. In contrast, the period from 2009 to 2010 saw minimal changes, reflecting the stability after the housing crash. These fluctuations are largely driven by changes in interest rates and Austin home prices. For example, in 2021, interest rates climbed from 4.33% in January to 5.40% by June, contributing to the sharp rise in PITI. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241219032811.png" alt="" width="" height="" style=""></figure></div> <a href="https://teamprice.com/affordability">Affordability in Austin</a> has been especially strained since 2021. Before this period, the PITI-to-income ratio rarely exceeded 30%. In recent years, it has consistently remained above 40%, indicating that buyers are dedicating a larger portion of their income to housing costs. This trend is unsustainable for many households and reflects the need for either higher incomes, lower home prices, or reduced interest rates to improve affordability in Austin. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241219032840.png" alt="" width="" height="" style=""></figure></div> In summary, <a href="https://teamprice.com/affordability">housing affordability in Austin</a> has worsened significantly since 2000. Monthly mortgage payments have more than doubled, and affordability ratios have reached record highs. While homeownership in the Austin area was once manageable for most households, the current market poses challenges that many buyers struggle to overcome. Understanding these trends helps both buyers and industry professionals navigate the evolving Austin housing market and make informed decisions. This article was written on December 19 2024 and reflects data up to that date. The following charts will provide up to date information. If you have any questions, please let us know.&nbsp;

Austin-area housing affordability has changed from 2000 to 2024. Learn about rising mortgage payments, interest rates, and affordability ratios, and understand why homeownership costs have doubled over the past 24 years in the Austin real estate market

Austin Real Estate Affordability: How Homeownership Costs Have Doubled Since 2000

Austin Home Prices Surge in December 2024: Highest Monthly Increase Since February 2022 December 16 2024 : The Austin real estate market showed a remarkable surge in December 2024, posting the highest month-over-month price increase since February 2022. After a year of fluctuating trends, this strong finish signaled a significant boost in home values and overall market activity. Both the average and median home prices saw double-digit increases, marking a noteworthy shift in the market. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241216011314.png" alt="" width="" height="" style=""></figure></div>​ In December 2024, the total number of homes sold reached 2,346. This was a 5.5% increase from the previous month’s total of 2,223 homes sold in November 2024. Compared to December 2023, when 2,324 homes were sold, this represented a modest 1.0% year-over-year increase. The upward trend in home sales suggested growing buyer confidence as the year came to a close. The average sold price for December 2024 was $616,500. This was a significant $59,108 jump from November 2024’s average of $557,392. This 10.6% month-over-month increase marked the highest spike in home prices since early 2022. Year-over-year, the average sold price was up by $65,694, representing an 11.9% increase from December 2023’s average of $550,806. These figures highlight a clear upward trend in property values in the Austin area. The median sold price also saw substantial growth, reaching $480,000 in December 2024. This was an $47,500 increase from the previous month’s median of $432,500, representing an 11.0% month-over-month gain. Compared to December 2023’s median price of $440,415, this reflected a 9.0% year-over-year increase. The rise in both average and median prices indicated strong demand across various price points in the market. In addition to rising prices, the sold-to-list price ratio for December 2024 remained consistent at 97.01%. This figure showed that, despite the increase in home values, buyers were still purchasing homes at prices very close to the original list prices. The slight dip from November 2024’s ratio of 97.14% suggested that while prices were climbing, sellers were maintaining realistic expectations. The December 2024 data underscored a strong finish to the year for the Austin real estate market. The combination of increased sales volume and rising prices suggested a renewed energy in the housing market. This surge could be attributed to a variety of factors, such as improved interest rates, seasonal buying patterns, and overall market confidence. With December 2024 marking the highest month-over-month increase since February 2022, it sets the stage for an interesting year ahead in Austin’s real estate market. As we head into 2025, buyers and sellers alike will be watching these trends closely. The data for December 2024 paints a picture of a market where demand is strong, prices are rising, and opportunities abound for those looking to buy or sell homes in the Austin area. Keep in mind that these prices are from December 01 2024 to December 16 2024; prices will change as properties sell between today (December 16 2024) and the end of the month. Stay tunned for updated sold data and visit our <a href="https://teamprice.com/market-cycle">Market Cycle</a> page which is updated daily (Monday through Friday).&nbsp;

Austin’s real estate market surged in December 2024 with the highest month-over-month price increase since February 2022. Average and median home prices jumped over 10%, reflecting strong buyer demand and market growth

Austin Home Prices See Highest Increase Since 2022 in December 2024

Austin Housing Market Update: November 2024 Sees Decline in Inventory Levels The Austin housing market has experienced notable fluctuations in inventory levels over the past two decades, with recent data indicating a significant decrease as of November 2024. <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">Months of Inventory (MOI)</a> is a key metric used to assess the balance between housing supply and demand. It represents the number of months it would take to sell all current listings at the prevailing sales pace, assuming no new properties enter the market. This measure helps categorize the market into seller's, neutral, or buyer's markets. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241127012813.png" alt="" width="" height="" style=""></figure></div> Historically, Austin's MOI has varied in response to economic conditions and market dynamics. Between 2005 and 2007, the MOI averaged around 4 to 5 months, indicating a balanced to seller's market. For instance, in January 2005, the MOI was 4.3 months, suggesting a seller's market. This trend continued through 2007, with January recording 3.7 months of inventory. The global financial crisis of 2008 led to a sharp increase in MOI, reflecting a shift toward a buyer's market. By May 2009, the MOI peaked at 7 months, highlighting an oversupply relative to demand. This period was characterized by economic uncertainty and reduced buyer activity. Recovery began in the early 2010s, with MOI gradually declining. By 2012, the MOI consistently fell below 5 months, returning the market to seller-favorable conditions. In January 2013, the MOI was at 2.6 months, indicating high demand and limited supply. This trend persisted through 2014 and 2015, with June 2015 recording an MOI of 4.3 months, maintaining a stable seller's market. The period from 2020 to 2022 marked historic lows in MOI, driven by unprecedented demand, low interest rates, and constrained supply. In January 2021, the MOI dropped to an extraordinary 0.8 months, signaling one of the most competitive seller's markets in recent history. This trend continued throughout 2021, with MOI remaining below 2 months for most of the year. In 2023, the market began to shift, with MOI increasing. By March 2023, the MOI rose to 3.7 months, indicating a transition toward more balanced conditions. As of November 2024, the market has experienced a notable decrease in inventory levels. The MOI has fallen to 4.7 months, down from 5.1 months in October 2024. This decline suggests a tightening market, with reduced supply relative to demand. Seasonal trends also influence MOI fluctuations. Typically, MOI rises during the summer months, peaking in May or June, and declines in the winter. For example, in December 2015, the MOI was at 3.3 months, while by June 2016, it had increased to 4.6 months. These patterns are consistent throughout the data set, reflecting the cyclical nature of real estate activity. Understanding MOI trends is essential for buyers, sellers, and industry professionals. This metric provides valuable insights into market competitiveness and aids in strategic decision-making. Whether navigating a low-inventory seller's market or preparing for a buyer's market with abundant supply, MOI remains a cornerstone for assessing market conditions.&nbsp;

Latest developments in the Austin housing market as of November 2024, highlighting a significant decrease in inventory levels. Understand how Months of Inventory (MOI) reflects current market conditions and what this means for buyers and sellers

Austin Housing Market Update: November 2024 Inventory Levels Decline

Understanding the Price-to-Rent Ratio in Austin: Insights Across 75 Zip Codes The Austin housing market is as dynamic as its growing population, and one key metric stands out for those evaluating whether to buy or rent: the <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratio</a>. This metric is calculated by dividing the median home price in an area by the annual cost of renting a comparable property. Understanding this ratio helps individuals make informed decisions, whether they are first-time buyers, seasoned investors, or long-term renters. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241126020605.png" alt="" width="" height="" style=""></figure></div> In Austin, the <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratio</a> varies significantly across its 75 zip codes. Areas with a ratio below 15 typically favor buying, as purchasing a home is more cost-effective than renting. For instance, in zip codes like 78724 and 78725, the ratio stands at 12.5. These neighborhoods represent some of the most affordable buying opportunities in the region. Similarly, other zip codes, including 78741 at 13.2 and 78753 at 13.5, offer attractive markets for prospective buyers seeking affordable homeownership options. For those exploring neighborhoods with a balanced market, the <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratio</a> ranges from 15 to 20. In these areas, the decision to rent or buy depends on individual circumstances. Notable examples include zip code 78717 with a ratio of 18.8 and 78727 with a ratio of 18.9. These zip codes offer flexibility, allowing potential homeowners and renters to assess their financial goals and lifestyle preferences when making their decisions. On the other end of the spectrum, zip codes with a ratio above 20 suggest renting is more economical. These areas often feature higher <a href="https://teamprice.com/price-to-rent-ratio">home prices relative to rental costs</a>, making them ideal for those who prefer to avoid the financial commitment of homeownership. For example, 78703, with a ratio of 39.4, and 78746, with a ratio of 31.7, stand out as prime rental markets. These zip codes are often sought after for their upscale homes and desirable locations, which drive up property values more rapidly than rental rates. Across the Austin metropolitan area, the median price-to-rent ratio is approximately 19.9. This figure places the overall market in a balanced position, with certain neighborhoods tilting more toward renting or buying based on specific local conditions. For instance, Travis County, which encompasses many of Austin’s central zip codes, showcases a broad range of ratios. Zip codes like 78703 and 78746 reflect high ratios that favor renters, while 78744 at 16.0 and 78747 at 15.1 offer more favorable conditions for buyers. Williamson County offers similar diversity. Zip codes such as 78634 in Hutto and 78641 in Leander reflect balanced ratios, providing opportunities for both renters and buyers. Meanwhile, Hays County, which includes areas like Kyle and Buda, features lower ratios in zip codes like 78640 (14.0) and 78610 (14.2), indicating strong markets for buyers seeking affordability. Overall, 48% of Austin's zip codes fall below a ratio of 15, marking them as buyer-friendly. Another 29% fall within the balanced range of 15 to 20, where market conditions support either buying or renting. The remaining 23% exceed a ratio of 20, emphasizing the value of renting in premium areas. For investors, these metrics provide valuable insights into where rental properties may yield the highest returns. Low-ratio zip codes like 78725 and 78724 present strong rental income opportunities with affordable home prices. Conversely, renters looking to maximize their housing budget should focus on high-ratio areas like 78703, where the relative cost of renting remains favorable compared to buying. By understanding the price-to-rent ratio across Austin's zip codes, individuals can better navigate this competitive real estate market. Whether buying a first home, renting a luxury property, or investing in a rental unit, the price-to-rent ratio serves as a powerful tool to inform smarter decisions and optimize financial outcomes​

Explore the price-to-rent ratio across 75 Austin zip codes. Learn whether it’s better to buy or rent, with detailed data on housing affordability, market trends, and investment opportunities in Austin’s real estate market

Austin Price-to-Rent Ratio: Insights Across 75 Zip Codes

Austin’s Real Estate Market Hits Record-High Average List Price in October 2024 The City of Austin continues to demonstrate its robust real estate market growth, with the average list price reaching an all-time high of $947,796 in October 2024. This marks a significant increase from the previous October 2023 figure of $891,040, representing a 6.36% year-over-year rise. Austin’s real estate market has consistently demonstrated resilience and upward movement in property values over the past decade, contributing to its appeal for both homebuyers and investors. Looking back at historical data, the average list price in Austin has climbed steadily over the last decade. In 2014, the average price was $446,553, meaning that in 10 years, the city has seen a staggering 113.8% increase in property values. This growth is reflective of Austin’s position as one of the fastest-growing cities in the United States, driven by strong economic factors, population growth, and high demand for housing. Month-to-month data over the past year shows fluctuations in pricing, but the general trend has remained upward. In January 2024, the average list price was $887,148, slightly down by 0.5% from January 2023. However, this minor decline was quickly offset in subsequent months, with prices rebounding and ultimately peaking in October 2024. Notable increases include the February average list price, which rose to $913,186, and the March figure of $921,807. In addition to the year-over-year increase, the data shows strong growth over the past five years. From 2020 to 2024, Austin’s average list price rose by 69.6%. This five-year trend underscores the city's sustained price appreciation, making it a sought-after location for both residential and investment properties. The year 2021 was particularly noteworthy, with the market experiencing a 22.7% increase in list prices in October of that year, largely due to heightened demand and limited inventory during the pandemic. Examining the data from earlier years highlights the long-term upward trajectory of the market. In October 2015, the average list price was $480,635, and by October 2020, it had surged to $638,789, a 14.3% rise from 2019. As of October 2024, the city has maintained a steady pattern of growth, despite occasional market adjustments. This upward trend in Austin’s real estate market is not unique to October alone. Throughout 2024, other months also experienced substantial price increases. For instance, the average list price in April 2024 was $946,453, which represents a 3.0% rise compared to the previous year. In July 2024, the market held firm with an average price of $825,660, marking a 1.2% year-over-year growth. These figures emphasize the ongoing demand for housing in the Austin area. One of the most striking aspects of this data is the consistency of Austin’s real estate market growth, even during periods of economic uncertainty. The year-over-year percentage changes show that the city has experienced stable, upward trends for the better part of a decade. Whether looking at the 10-year growth of 113.8% or the five-year surge of 69.6%, it is clear that Austin remains a competitive market for both buyers and sellers. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241024043822.png" alt="" width="" height="" style=""></figure></div> As Austin’s average list price continues to rise, market analysts will closely watch whether this trend persists into 2025. For now, it’s evident that Austin's real estate market is strong, with prices reflecting both the high demand for housing and the area's rapid economic growth. The data suggests that as long as these driving factors remain in place, Austin’s market will likely continue to thrive, presenting opportunities for those looking to invest in one of the nation’s most dynamic housing markets​

In October 2024, Austin’s real estate market hit a record high, with the average list price reaching $947,796. Learn about the market's impressive 113.8% growth over the past decade and what’s driving these numbers.

Austin Real Estate Reaches Record-High List Price: October 2024 Analysis

Austin Zoning Changes Lead to Spike in 2-4 Unit Housing Permits In September 2024, Austin witnessed a remarkable <a href="https://teamprice.com/building-permits">surge in permits</a> for the construction of 2-4 unit housing developments. According to recent data, 314 permits were issued in that month alone. This is a substantial increase compared to previous months, reflecting a clear shift in Austin's housing market and development patterns. This surge is a result of recent zoning reforms that have reshaped how residential lots are used in the city, encouraging higher-density housing solutions. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241024030408.png" alt="" width="" height="" style=""></figure></div> Historically, Austin’s zoning laws favored single-family homes, limiting the potential for diverse housing options in many neighborhoods. However, in response to the city's growing population and affordability challenges, the Austin City Council introduced significant changes aimed at boosting housing density. One key reform, implemented in December 2023, allowed developers to build up to three units—such as duplexes and triplexes—on lots previously zoned for single-family homes. This change was a bold move to encourage more efficient use of space in Austin's urban core and increase the availability of affordable housing options. Further enhancing these efforts, in May 2024, the City Council reduced the minimum lot size requirement for single-family homes. The previous minimum of 5,750 square feet was reduced to 1,800 square feet, which opened the door for smaller, more affordable homes to be built on the same land footprint. This reduction in lot size also allowed for the development of 2-4 unit homes on lots that would have previously only accommodated a single-family residence. The data clearly shows that developers are taking advantage of these changes. The spike to 314 permits in September 2024 is a striking increase when compared to the year’s previous average. In August 2024, only 30 permits for 2-4 unit developments were issued, and in July 2024, there were just 25 permits. These lower numbers reflect a typical trend from earlier years, when fewer multi-unit developments were feasible due to Austin’s restrictive zoning laws. This recent spike marks a significant shift in how the city is addressing its housing needs. The multi-unit housing developments not only provide more affordable housing options but also help accommodate the influx of new residents to Austin. By allowing duplexes, triplexes, and fourplexes to be built in neighborhoods that previously only allowed single-family homes, the city is working to alleviate its housing shortage and offer more diverse living arrangements for its residents. While some local residents have voiced concerns about the potential changes to neighborhood character and increased density, the city’s leadership is focused on addressing Austin’s housing crisis through smart, calculated reforms. The dramatic rise in permits for 2-4 unit homes is evidence that these zoning changes are having a tangible impact on Austin’s housing market. Developers are responding quickly to the opportunities created by these reforms, and the result is a more diverse and dynamic housing landscape in the city. Austin’s recent zoning reforms aim to strike a balance between preserving neighborhood integrity and meeting the growing demand for housing. As developers continue to take advantage of these changes, Austin’s housing market will likely see further shifts, with increased density playing a crucial role in the city’s efforts to provide affordable housing options to its expanding population​

In September 2024, Austin issued 314 permits for 2-4 unit housing developments, marking a significant increase driven by recent zoning reforms. Discover how these changes are reshaping Austin’s housing market and addressing the city’s affordability challenges

Austin Real Estate: 2-4 Unit Permits Surge in September 2024

Austin Area Housing Market: October 2024 Market Conditions by Zip Code October 23 2024 : The real estate market in the Austin area, specifically across 75 zip codes, offers a diverse landscape that fluctuates between sellers, neutral, and buyers’ markets. A detailed look at the data from October 2024 reveals critical insights into months of inventory, pricing trends, and the overall real estate dynamics within key areas such as Austin, Georgetown, Round Rock, and Leander. Understanding these trends is essential for both buyers and sellers to make informed decisions. <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">Months of inventory</a>, a measure of the balance between supply and demand, plays a pivotal role in defining the market. A sellers' market is characterized by less than 4.9 months of inventory, meaning demand is higher than the available homes. Neutral markets have inventory between 5 and 6.9 months, where supply and demand are more balanced. Finally, buyers' markets feature more than 7 months of inventory, where the supply of homes exceeds demand, giving buyers more negotiating power. As of October 2024, 39% of the cities in the Austin area fall under the sellers' market category, 25% are classified as neutral markets, and 36% are buyers' markets. Each zip code reflects a different set of market conditions, and the data illustrates how these factors influence property prices and time on the market. In a sellers' market like <a href="https://teamprice.com/zip-codes/78739">78739 (Austin)</a>, there is only 1.4 months of inventory, making it highly competitive for buyers. With an average home price of $936,857 and a median price of $799,450, homes in this area are in demand. The median time on the market is 41 days, a testament to how quickly properties are moving. Similarly, <a href="https://teamprice.com/zip-codes/78747">78747 (Austin)</a> also reflects a sellers' market, though inventory is slightly higher at 5.5 months. With 143 active listings, homes have a median price of $454,990 and spend 32 days on the market. In contrast, neutral markets offer a more balanced environment for both buyers and sellers. <a href="https://teamprice.com/zip-codes/78759">78759 (Austin)</a>, with 5.3 months of inventory, fits into this category. The median home price here is $634,500, and properties take about 69 days to sell. Neutral markets like <a href="https://teamprice.com/zip-codes/78626">78626 (Georgetown)</a>, which features 4.51 months of inventory and a median price of $436,505, reflect balanced supply and demand, allowing transactions to be fairer for both sides. Buyers' markets, on the other hand, are seen in areas like <a href="https://teamprice.com/zip-codes/78746">78746 (Austin)</a>, where the inventory reaches 8.6 months. This area features a high-end market, with average home prices reaching $3,153,492 and a median price of $2,480,000. Homes in this category tend to stay on the market longer, with a median of 89 days, offering buyers more time and negotiating power. Another buyers’ market is <a href="https://teamprice.com/zip-codes/78669">78669 (Spicewood)</a>, where inventory levels stand at 11 months. The median home price is $963,000, and homes typically stay on the market for 119 days. Price trends across the region show a mix of reductions and slight increases. In high-demand areas like <a href="https://teamprice.com/zip-codes/78704">78704 (Austin)</a>, prices have dropped by 8.2%, while <a href="https://teamprice.com/zip-codes/78731">78731 (Austin)</a> saw an 8.6% price reduction, reflecting a market shift even in previously competitive zones. Meanwhile, <a href="https://teamprice.com/zip-codes/78759">78759 (Austin)</a> experienced a notable 21.8% price increase, despite being in a neutral market. This uptick indicates growing demand, even as supply remains relatively balanced. Areas with more price volatility are typically those with higher inventory. <a href="https://teamprice.com/zip-codes/78645">78645 (Leander)</a> and <a href="https://teamprice.com/zip-codes/78722">78722 (Austin)</a>, with 11 and 7.2 months of inventory respectively, have seen more fluctuations in prices as sellers adjust to the slower market. As a result, more properties in these zip codes have experienced price drops to attract buyers. For instance, <a href="https://teamprice.com/zip-codes/78701">78701 (Austin)</a> had 52.2% of its listings adjust prices, with an average reduction of 8.0%. This trend of price adjustments is common across the market as sellers respond to changing demand. Inventory levels in each zip code are crucial for understanding market conditions. <a href="https://teamprice.com/zip-codes/78739">78739 (Austin)</a>, with its low inventory, reflects a tight market where buyers must act quickly, while areas like <a href="https://teamprice.com/zip-codes/78669">78669 (Spicewood)</a> and <a href="https://teamprice.com/zip-codes/78746">78746 (Austin)</a>, with their higher inventory, provide more opportunities for buyers to negotiate better deals. For instance, in 78746 (Austin), where the inventory is at 8.6 months, the median time on the market is 89 days, giving buyers more time to consider their options. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241023021334.png" alt="" width="" height="" style=""></figure></div> As the Austin area continues to grow, market conditions are likely to shift further. Monitoring these trends and understanding the months of inventory in each zip code will be key for anyone looking to buy or sell in this diverse and competitive market. Whether you are looking to capitalize on a sellers' market or negotiate in a buyers' market, understanding these market metrics is essential for success.&nbsp;

Discover the latest real estate trends in the Austin area with insights on months of inventory, pricing, and market conditions across 75 zip codes. Learn how market dynamics favor buyers or sellers and how these factors impact home prices and time on the market in October 2024

Austin Area Real Estate Market Analysis: October 2024 Insights by Zip Code

Historic Decline:&nbsp;<a href="https://teamprice.com/appreciation-year-over-year-lease-city">Austin’s Median Rental Price Drops</a> in 2024 After Two Decades of Growth In 2024, the Austin rental market has witnessed its most significant shift in over two decades. According to recent data, the city’s <a href="https://teamprice.com/appreciation-year-over-year-lease-city">median leased price has dropped</a> by 2% year-over-year, the largest annual decline since 2002. This is a noteworthy development for a city that has been experiencing rapid growth and soaring rental prices in recent years. The median leased price in Austin for 2024 is $2,300, a decrease from $2,350 in 2023. This 2% drop is particularly striking when compared to the substantial gains seen in 2022, when the median price surged by 18%, reaching an all-time high. The trend reversal suggests that the Austin rental market may be cooling down, perhaps due to a combination of increasing rental supply and evolving economic conditions impacting demand. In terms of <a href="https://teamprice.com/appreciation-year-over-year-lease-city">average rental prices</a>, Austin also saw a decrease. The average leased price for 2024 stands at $2,608, down 1% from $2,647 in 2023. While the reduction in the average price is not as significant as the median, it reflects a consistent downward movement. This aligns with the broader trend in the median price, showing that both metrics are indicating a softer rental market. The number of units leased in 2024 has decreased to 12,850, down from 14,874 in the previous year. This drop in leasing activity could be linked to various factors, such as affordability issues, potential renters shifting to homeownership, or the increase in remote work opportunities allowing people to seek housing options outside of the city. The lowered demand is likely putting downward pressure on prices, contributing to the observed declines in both median and average leased prices. Historically, Austin has experienced fluctuations in its rental prices, but this year’s decline is unique due to its magnitude. The last time Austin saw a drop of this scale was in 2002, when the median leased price fell by 13%. Since then, the market has generally trended upwards, with only occasional dips, such as a 1% decrease in the average leased price during 2009 and 2010, and more recently, the 1% dip in 2023. The 2024 decline, therefore, stands out as a considerable shift, signaling possible changes in the long-term rental landscape for Austin. Despite these declines, the rental prices remain high compared to a decade ago. In 2013, the median leased price was just $1,450, which is significantly lower than today’s $2,300. This increase reflects Austin’s growth and its transformation into a sought-after urban area, attracting professionals, families, and students alike. However, the current dip may suggest that the market is stabilizing, possibly offering renters a brief respite from the upward pressure on prices. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241017053458.png" alt="" width="" height="" style=""></figure></div> As we look forward, it remains to be seen whether this cooling trend will continue, or if Austin’s rental market will rebound. Factors such as interest rates, employment levels, and broader economic conditions will likely play a role in determining the direction of rental prices. However, for now, renters in Austin may find some relief as the market appears to be adjusting after years of sustained growth.&nbsp;

Discover how Austin’s rental market is changing in 2024, with a 2% drop in median leased prices marking the largest decline since 2002. Learn about the factors contributing to this shift in one of the nation’s hottest housing markets

Austin’s Median Rental Prices Drop by 2% in 2024: Largest Decline in Over 20 Years

Austin-Area Home Prices Drop by 22%: What It Means for Buyers and Sellers The real estate market in the Austin area has experienced a significant shift since its peak, with notable <a href="https://teamprice.com/residential-price">declines in both list and sold prices</a> across various metrics. This analysis, based on data from the Austin-Area MLS and the City of Austin, provides a detailed breakdown of how home prices have changed since reaching their highest points. For buyers, sellers, and real estate professionals, understanding these trends is essential to navigate the current market conditions effectively. As of September 2024, the <a href="https://teamprice.com/residential-price">average list price in the Austin-Area MLS</a> has decreased by 6.3% from its peak value in April 2024. At that time, the average list price was $709,318, but it has since fallen to $664,347. Similarly, the median list price in this region peaked earlier, in May 2022, at $539,900. It now stands at $465,041, marking a more substantial drop of 13.9%. This decline in listing prices reflects the broader market's correction and signals opportunities for buyers seeking to enter the market at more competitive prices. The <a href="https://teamprice.com/residential-price">sold prices in the Austin-Area MLS</a> show even more dramatic declines. The average sold price peaked in May 2022 at $664,515. Today, that figure has dropped by 18.6%, settling at $541,059. The median sold price has seen an even sharper decline, falling from a peak of $538,000 in May 2022 to $420,000 today, representing a 21.9% decrease. Additionally, the average price per square foot for sold homes in the Austin-Area MLS has dropped by 22.5%, from $324 to $251. The median price per square foot has also seen a 22.5% decline, falling from $280 to $217. These reductions underscore the changing dynamics of the market and suggest that sellers may need to adjust their expectations regarding home values. Turning to the City of Austin specifically, we see somewhat smaller <a href="https://teamprice.com/residential-price">declines in list prices</a>, but significant reductions in sold prices. The average list price in the City of Austin peaked at $948,096 in April 2024. While this figure remains relatively high, it has dropped by 2.5% to $924,711. The median list price, which reached $658,589 in May 2022, now sits at $625,000, reflecting a 5.1% decrease. <a href="https://teamprice.com/residential-price">Sold prices in the City of Austin</a> have fallen even more sharply. The average sold price, which peaked at $847,583 in May 2022, has dropped by 14.8% to $722,561. The median sold price has fallen from $680,000 to $570,000, a decrease of 16.2%. When considering price per square foot, the declines are more pronounced. The average price per square foot has decreased by 21.7%, from $442 at its peak to $346. Similarly, the median price per square foot has dropped by 21.9%, falling from $393 to $307. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240930120512.png" alt="" width="" height="" style=""></figure></div>​ These declines are significant and offer valuable insights into the state of the Austin real estate market. For buyers, this may represent a favorable time to enter the market, with prices being lower than their peak. Sellers, on the other hand, may need to adjust their strategies, pricing their homes more competitively to attract buyers in a market that has shifted away from its peak values. Regardless of whether you're buying or selling, staying informed about the latest trends in the Austin real estate market is crucial for making smart decisions. With home prices in the Austin area and the City of Austin seeing drops of up to 22.5% from their peak, the data suggests that the market is undergoing a significant correction. While the average and median list prices show more modest declines, particularly in the City of Austin, the sold price data indicates that buyers are paying considerably less than they were at the market’s peak. For real estate professionals, this information is invaluable when advising clients on how to navigate the current market conditions​

Austin real estate prices have dropped significantly since their peak in 2022 and 2024. Learn about the detailed price reductions in list and sold prices, as well as changes in price per square foot, and understand what these trends mean for buyers and sellers in the Austin real estate market

Austin Real Estate Market: How Prices Have Dropped Since Peak Values

Austin’s Housing Market Shows Signs of National Shift: Freddie Mac House Price Index for July and August 2024 September 30, 2024 : The&nbsp;<a href="https://teamprice.com/freddie-mac-house-price-index">Freddie Mac House Price Index (FMHPI)</a> is an important tool that tracks the trends in home prices across cities in the United States. For real estate professionals, homeowners, and potential buyers, understanding these trends is crucial in making informed decisions about the market. The latest data from July and August 2024 provides valuable insights into the shifts occurring in the housing market, particularly in Austin, Texas, as well as other major cities across the country. In July 2024, the national housing market experienced a slight decrease in home prices. The <a href="https://teamprice.com/freddie-mac-house-price-index">Freddie Mac House Price Index</a> for that month revealed an average month-over-month (MoM) decline of 0.1% across major cities. However, the year-over-year (YoY) price changes indicated that many markets were still growing compared to the previous year, with an average increase of 3.5%. Cities like Miami and Charlotte saw higher growth rates, driven by strong demand, while cities like Austin showed more modest or even negative trends. By August 2024, the national housing market displayed more noticeable changes. The MoM increase across cities averaged 4.02%, suggesting that while there was some softening, many markets were still experiencing upward momentum. The YoY price increase also slowed slightly to an average of 3.5%, down from the 3.5% seen in July. This indicates that while prices are still higher than they were a year ago, the rate of growth is stabilizing. For Austin, this change was less positive. The city’s MoM increase was a modest 1.74% in August, showing a slower pace of growth compared to the national average. Year-over-year, Austin’s housing prices fell by 5.1% in August, compared to a 5.1% decline in July. This trend points to a market correction in the city, as home prices cool after years of rapid increases. Austin, known for its strong housing market in recent years, has faced new challenges in 2024. The tech-driven city had seen a surge in demand for homes during the pandemic, as more people moved to the area for remote work opportunities and quality of life. However, in 2024, rising mortgage rates and concerns about affordability have dampened demand. Buyers are now more hesitant to enter the market, leading to a cooling in prices. For homeowners and sellers in Austin, this means adjusting expectations, while for buyers, it could represent an opportunity to enter a market that is stabilizing. Other cities in the Freddie Mac House Price Index for July and August show varied results. In Miami, housing prices continue to rise, driven by a combination of migration from other states and strong local demand. Miami saw a YoY increase of 13.6% in August 2024, making it one of the strongest-performing markets in the country. By comparison, cities like San Francisco and Denver have experienced declines similar to Austin’s, with both cities showing year-over-year price decreases. San Francisco, in particular, has been grappling with affordability issues and a shift in the workforce that has reduced demand for high-priced homes in the city. Looking at the data for the top 40 cities by population, several patterns emerge. Cities in the Southeastern United States, such as Miami, Tampa, and Charlotte, continue to experience price growth, though at a slightly slower pace than in previous years. These cities have been beneficiaries of a migration trend from more expensive regions, as people seek more affordable housing and warmer climates. On the other hand, cities in the Western United States, including Austin, San Francisco, and Denver, have seen prices decline as market conditions shift. In these cities, affordability and the end of pandemic-driven demand have contributed to the cooling market. The <a href="https://teamprice.com/freddie-mac-house-price-index">Freddie Mac House Price Index</a> also provides insight into the broader national trends for all 384 cities included in the data. While the overall MoM price changes indicate that many markets still see positive growth, YoY growth remains positive but slower than in previous years. The national average YoY price increase of 3.5% in August 2024 reflects a still-growing market, while Austin showed a YoY decrease of 5.1%. The national average MoM increase was 4.02%, with Austin’s increase standing at 1.74%. Additionally, Austin is down 15.5% from its peak in May 2022, while the national average drop from the peak across all cities is 1.4%. One of the most important insights from the Freddie Mac House Price Index is the "Down from Peak" data. Last month, 76 out of the 384 cities tracked by the FMHPI had experienced a decline from their peak home values. However, in just one month, that number surged to 335 cities—a staggering 87.2% of the tracked markets. This dramatic increase suggests a widespread correction in home prices across the United States. Austin, which saw a significant drop of 15.5% from its peak, may very well be the "canary in the coal mine" for this broader market downturn. As one of the first major cities to experience a sharp price decline, Austin could be signaling what’s to come for other cities. With more markets now following suit, this data reflects a cooling housing market that could become a national trend in the coming months. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241001123131.png" alt="" width="" height="" style=""></figure></div>​ Austin’s housing market, in particular, stands out in the latest Freddie Mac data. While the national average increase in home prices from January 2020 to August 2024 is 51.6%, Austin's growth in the same period is 40.8%. From January 2021, the national average increase is 35.6%, while Austin saw only an 18.3% rise. Since August 2022, the national market has grown by 7.8%, but Austin’s prices have dropped by 11.9% in that same period. This marks a significant shift from the city’s rapid price increases in previous years. The decline in Austin’s market can be attributed to a combination of rising mortgage rates, affordability concerns, and a reduction in out-of-state buyers who had previously fueled demand. For buyers and sellers in Austin, understanding these trends is crucial. For buyers, the price declines may present an opportunity to enter the market at a more favorable time, particularly as inventory levels rise and competition decreases. Sellers, on the other hand, may need to adjust pricing expectations as the market corrects itself. Real estate professionals in Austin should keep a close eye on these trends, as the market continues to shift in response to broader economic factors. In conclusion, the <a href="https://teamprice.com/freddie-mac-house-price-index">Freddie Mac House Price Index</a> for July and August 2024 highlights the varied performance of housing markets across the United States. While some cities continue to see price growth, others, like Austin, are undergoing a market correction. For those in the Austin real estate market, understanding these data points and adjusting strategies accordingly will be key to navigating the changes in the months ahead.&nbsp;

Freddie Mac House Price Index for July and August 2024, with a focus on Austin’s housing market trends. Learn how Austin’s home prices have dropped by 15.5% from their peak, signaling a potential national housing market correction. Stay informed on the latest shifts in the real estate market

Austin Leads National Housing Market Shift: Freddie Mac House Price Index for July and August 2024

Austin Lease Market Analysis 2023-2024Key Insights into the Best and Worst Performing Zip Codes The Austin real estate market is known for its dynamic changes, especially in rental prices across various zip codes. Between 2023 and 2024, Austin saw both significant appreciation in some areas and declines in others, painting a detailed picture of the city's evolving lease market. Using the most recent data, we explore two Austin zip codes: one with the highest appreciation and another that experienced the most significant decline. These insights can help prospective tenants and investors better understand the current leasing landscape in Austin. In 2023, the average <a href="https://teamprice.com/appreciation-year-over-year-lease-zip-code">lease price for properties in the 78733 zip code</a> was $4,255. By 2024, this had increased to $4,842, marking an impressive 13.8% year-over-year appreciation. Located in the western part of Austin, in Travis County, the 78733 zip code encompasses areas near Lake Austin and the scenic Hill Country. The allure of this area lies in its proximity to luxury waterfront properties, expansive homes, and top-rated schools. The neighborhood offers a peaceful lifestyle with easy access to downtown Austin and the natural beauty of the surrounding area, including hiking trails and open spaces. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240927112506.png" alt="" width="" height="" style=""></figure></div> The significant increase in rental prices in 78733 is indicative of strong demand for luxury housing, particularly in areas with limited inventory and access to natural amenities. This part of Austin has long been favored by those seeking large estates and upscale living. The increase in average lease price also suggests that many are willing to pay a premium to live in this exclusive area, close to the water and surrounded by the Hill Country's stunning landscape. Conversely, the 78726 zip code, also located in Travis County, experienced a notable decline in rental prices. In 2023, the <a href="https://teamprice.com/appreciation-year-over-year-lease-zip-code">average lease price in this zip code</a> was $3,140, but by 2024, it had fallen to $2,881, reflecting an 8.3% decrease. This area, which includes parts of the Northwest Hills region and Anderson Mill, is known for its suburban feel, with family-friendly neighborhoods and access to nature preserves like the Balcones Canyonlands. Despite its suburban charm and convenient access to outdoor recreational areas, this part of Austin saw a cooling demand for leases, leading to the decline in average rental prices. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240927112554.png" alt="" width="" height="" style=""></figure></div> Several factors could explain this decline. The 78726 area, while desirable for families and those seeking a quieter suburban environment, may face increased competition from other parts of Austin where development and urbanization are accelerating. As more people opt for areas with closer proximity to downtown or regions with newer developments, 78726 may be experiencing lower demand for leases, contributing to the drop in rental prices. Additionally, as some of Austin's more suburban zip codes begin to feel the effects of this shifting demand, lease prices may continue to stabilize or decrease in certain areas. Looking at the broader trends in Austin's lease market, the 78733 zip code exemplifies the upper-tier market's strength, with its luxury offerings and high demand continuing to drive rental price appreciation. Meanwhile, the decline in 78726 shows how some suburban areas, despite their family-friendly appeal, may be less attractive as renters shift their focus to areas with newer amenities and closer city access. These contrasting trends underscore the importance of location and proximity to amenities in determining lease prices across Austin. Overall, understanding these key zip codes—one experiencing strong growth and the other facing challenges—provides valuable insights into Austin's lease market. As rental prices continue to fluctuate across the city, tenants and investors should carefully consider not only current prices but also long-term trends and the underlying factors driving market shifts. The data from 2023 to 2024 offers a detailed view of where Austin’s lease market is heading and what to expect in the near future.​

Discover the best and worst performing zip codes in Austin’s lease market from 2023 to 2024. Explore detailed data insights on rental price appreciation and declines in key Austin neighborhoods, including 78733 and 78726, to stay ahead of real estate trends

Austin Lease Market 2024: Best and Worst Performing Zip Codes

Overview of 2024 Building Permit Activity As of August 2024, the total number of <a href="https://teamprice.com/building-permits">building permits</a> issued across all units in the Austin area was above historical averages, reflecting continued robust construction activity in the region. Through August, the cumulative total of building permits was 39.2% higher than the long-term average, suggesting sustained demand for residential development. However, there were month-to-month fluctuations, with certain months performing below expectations, such as April and May. This pattern mirrors some volatility in the Austin real estate market, where both demand and economic conditions influence building activities. Breakdown by Units Single-Unit Permits: The demand for single-family homes in Austin has continued to drive a significant portion of <a href="https://teamprice.com/building-permits">building permit applications</a>. The data shows a steady issuance of permits for single-unit properties, with the year-to-date figures remaining stable compared to previous years. Although not dramatically above historical averages, the issuance of permits for single-unit properties reflects a steady housing market. 2-4 Unit Permits: Permits for 2-4 unit developments have shown a modest increase compared to the previous year but still represent a smaller share of total building permits. This category typically reflects smaller multifamily developments, such as duplexes or triplexes, which are often favored in urban areas for their affordability and density. 5+ Unit Permits: Larger multifamily developments (5 or more units) have shown significant growth in 2024, particularly during the summer months. August, in particular, saw a marked increase in permits issued for 5+ unit buildings, reflecting the ongoing demand for apartments and condominium developments in the Austin area. This trend aligns with the growing population and the need for higher-density housing solutions in the metropolitan area. Month-by-Month Trends in 2024 The report provides a monthly breakdown of building permit issuance, allowing for a closer examination of construction trends. Some key observations include: January: The year began with a relatively strong issuance of building permits, with over 3,000 permits issued, reflecting a continuation of momentum from 2023. April-May Decline: In contrast, April and May saw a drop in permit issuance compared to the early months of the year. These months registered permit counts closer to the historical averages, suggesting a temporary cooling of the market. Summer Surge: The summer months of July and August saw a resurgence in building activity, with permit numbers spiking, particularly in the multifamily housing sector. August was notable for being 41.4% above the long-term average for that month, emphasizing the strong seasonal demand for housing in the Austin area. Population-Adjusted Trends One significant feature of the report is its adjustment of building <a href="https://teamprice.com/building-permits">permit data relative to the population size</a> of the Austin area. This adjustment is crucial in understanding whether the level of building activity is proportional to the city's growth.&nbsp;The report notes that permits issued per 100,000 people for the month of August 2024 were 7.1% above the historical average, indicating that, on a per capita basis, construction activity is outpacing population growth.&nbsp;Cumulatively, from January through August 2024, the number of permits per 100,000 people was 4.3% above average, further underscoring that Austin is experiencing an above-average rate of construction relative to its population growth. Historical ContextLooking at the historical data, several long-term trends emerge:Early 2000s Boom: The Austin area saw a sharp increase in building permit issuance during the early 2000s, peaking in 2006. This period was characterized by rapid population growth and economic expansion, leading to heightened demand for housing.2008 Recession Impact: The global financial crisis in 2008 significantly impacted the housing market in Austin, as reflected in the sharp decline in building permits during 2009 and 2010. The report shows that the issuance of permits during this period fell dramatically, with some months seeing as few as 200-300 permits issued.Post-Recession Recovery: After bottoming out in 2010, building permit activity slowly recovered. The recovery gained pace after 2012, with 2020 being a particularly strong year for permits issued. This period of growth coincides with Austin’s rise as a major tech hub, drawing an influx of new residents and spurring housing demand.Pandemic Surge: 2020 and 2021 were exceptional years for building permit issuance, reflecting the strong demand for housing during the pandemic. The report highlights that these years were well above the long-term average, with certain months in 2021 seeing record-breaking numbers of permits issued. Current Economic FactorsThe surge in <a href="https://teamprice.com/building-permits">building permit activity in 2024</a> must also be understood in the context of broader economic conditions. Several factors are likely influencing the continued high demand for residential construction in Austin:Population Growth: Austin remains one of the fastest-growing metropolitan areas in the United States, attracting both domestic and international migrants. The influx of new residents has put pressure on the housing market, driving both prices and the need for new construction.Job Market Strength: Austin’s economy continues to perform strongly, particularly in the tech sector, where companies such as Tesla, Apple, and Oracle have expanded operations. The strength of the local job market is a key driver of housing demand, as new workers relocate to the area.Interest Rates: While rising interest rates have cooled some housing markets across the U.S., Austin’s demand for housing remains resilient. However, the report notes some fluctuations in building permit issuance, which may reflect the uncertainty caused by changing interest rates. Higher borrowing costs can dampen demand for new housing construction, especially in more expensive markets. Conclusion :&nbsp;The <a href="https://teamprice.com/building-permits" class="on">Austin-area building permit data</a> for 2024 indicates that the region is experiencing robust construction activity, with the issuance of permits well above historical averages. Both single-family homes and larger multifamily developments are contributing to the growth, reflecting the diverse housing needs of the region’s expanding population. While there have been some monthly fluctuations, the overall trend points to a resilient market, bolstered by strong economic fundamentals. As Austin continues to grow, the demand for new housing is likely to remain strong, with building permits serving as a key indicator of future development and real estate trends in the region. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240927120734.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="0" data-file-name="austin building permit 1.png" data-file-size="361223" data-origin="," style=""></figure></div>​ <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240927120745.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="1" data-file-name="austin building permit 2.png" data-file-size="130231" data-origin="," style=""></figure></div> <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240927120805.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="2" data-file-name="austin building permit 3.png" data-file-size="129337" data-origin="," style=""></figure></div>

Explore Austin's 2024 building permit data with a detailed analysis of trends in single-family, 2-4 unit, and 5+ unit developments. Learn how construction activity is responding to the city's growing housing demand, with permits issued through August showing a 39.2% increase over historical averages

Austin Building Permits Surge in 2024: New Data Shows Strong Growth

Austin Real Estate Market: Examining Months of Inventory from 2014 to 2024 The Austin real estate market has experienced significant shifts over the past decade, with the <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">months of inventory</a> serving as a key indicator of these changes. The term "months of inventory" refers to the amount of time it would take to sell all active listings in the market at the current pace of sales. When months of inventory are low, it signals a seller's market where demand exceeds supply. Conversely, higher months of inventory indicate a buyer's market, where there are more homes available than there are buyers. Understanding the fluctuation of months of inventory in Austin from 2014 to 2024 can offer insight into how the market has evolved and where it may be heading. In 2014, the Austin housing market had an average of 3.37 months of inventory. This level indicated a balanced market where neither buyers nor sellers had a significant advantage. By 2015, the months of inventory increased slightly to 3.61, maintaining the market’s balanced nature. However, a steady decline began in the years that followed, with the months of inventory dropping to 2.45 by 2018. This trend suggested that housing supply was tightening as demand increased, likely driven by Austin's booming population growth and economic expansion. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240926115222.png" alt="" width="" height="" style=""></figure></div> The onset of the pandemic in 2020 marked a dramatic shift in the real estate landscape. The months of inventory plummeted to just 1.54 in 2020, reflecting an extremely competitive seller's market. The pandemic spurred demand for homes as historically low interest rates and the rise of remote work led many to seek more spacious living environments. In 2021, the months of inventory reached an all-time low of 0.97. Buyers were facing significant challenges, with homes being sold almost as soon as they were listed, creating intense competition. However, by 2022, the months of inventory began to increase as the market started to correct itself. The average months of inventory for that year rose to 2.37, more than doubling from the previous year’s figure. This upward trend continued into 2023, with the months of inventory rising to 4.01, a sign that the market was beginning to balance after the volatility caused by the pandemic. As of 2024, the months of inventory have reached 4.89, suggesting that supply is starting to catch up with demand. Looking at individual months, the seasonal fluctuations in Austin's real estate market become apparent. For instance, January consistently sees lower months of inventory compared to the summer months, which is a common trend in real estate markets nationwide. In 2024, January had 3.27 months of inventory, while June reached 5.93, reflecting increased market activity during the warmer months when families tend to move. This pattern is consistent across the years, with inventory levels generally peaking during the summer and declining in the winter.&nbsp; Over the ten-year period from 2014 to 2024, the data reveals significant year-over-year percentage changes. For example, in January 2022, there was a 261.7% increase in inventory compared to 2021, highlighting how dramatically the market had shifted. The years immediately following the pandemic saw inventory levels steadily rise, marking a return to a more balanced market. Despite this correction, the 2024 levels are still higher than pre-pandemic figures, indicating that Austin’s housing market is likely entering a new phase of stabilization. In the long-term view, the 5-year and 10-year averages offer further perspective. From 2020 to 2024, there was a 73.6% increase in the months of inventory for January, while the 10-year comparison shows a 24.0% rise. These trends suggest that while the market is recovering from the dramatic shifts seen during the pandemic, it may not fully revert to the conditions seen in the mid-2010s when inventory levels were much lower. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240926115300.png" alt="" width="" height="" style=""></figure></div> The months of inventory is a crucial indicator of market health. For potential buyers and sellers in the Austin area, understanding these trends can help inform decisions about entering or exiting the market. With the current levels approaching 5 months of inventory in 2024, Austin is moving closer to a balanced market where neither buyers nor sellers have a distinct advantage. This return to equilibrium after years of intense competition is a promising sign for the stability of the housing market in the city.

Explore the evolution of Austin's real estate market with a detailed analysis of months of inventory from 2014 to 2024. Discover how the market has shifted from a seller’s market to a more balanced state, with data-driven insights into key trends and seasonal variations. Learn what these inventory changes mean for buyers and sellers in Austin

Months of Inventory in Austin Real Estate: A Decade of Data (2014-2024)

Austin Real Estate Activity Index Sees Uptick Amid Seasonal Changes and Lower Interest Rates As of&nbsp;&nbsp;September 24, 2024, the <a href="https://teamprice.com/insight-and-statistics">Austin real estate market</a> is showing signs of improvement, with the <a href="https://teamprice.com/real-estate-glossary/activity-index">Austin Area Real Estate Activity Index</a> reaching its highest point since late July. This shift in the market comes after months of fluctuating activity, driven primarily by changes in both pending sales and the number of active listings. The data reveals a market responding to various factors, including seasonality, improved interest rates, and the attractiveness of current listing prices, many of which have undergone significant price reductions. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240924012751.png" alt="" width="" height="" style=""></figure></div> Currently, the <a href="https://teamprice.com/real-estate-glossary/activity-index">Activity Index</a> for 2024 sits at 22.4%, marking a notable difference of -12.6% compared to the 25.6% figure from 2023. Despite this decline from the previous year, recent data shows that the market may be turning a corner. Pending sales, for example, are now at 4,247, their highest level since August 1, 2024. Meanwhile, active listings have decreased to 14,753, down from a peak of 15,503 on July 15, 2024. This drop of 750 active listings is a strong indicator of tightening inventory, a trend that often accompanies increased buyer interest.​Seasonality continues to play a major role in the fluctuations of the Austin real estate market. As the summer season ends, it's common to see shifts in both inventory and buyer demand. However, in 2024, other factors are intensifying these changes. One of the most significant is the improvement in interest rates, which has made financing more accessible for potential buyers. Coupled with the decreasing number of active listings, this has contributed to an uptick in pending sales, further bolstering the Activity Index.​Another critical factor driving the current market is the sharp price reductions across a large percentage of active listings. Of the 14,753 <a href="https://teamprice.com/active-residential-listings">active properties</a>, 56.7% have experienced price drops. These reductions are not minor; in the <a href="https://teamprice.com/insight-and-statistics-austin">City of Austin</a> alone, 58.3% of the 2,567 active listings have had price drops, with an average reduction of $98,000, or -7.6%. These price adjustments are drawing more attention from potential buyers, making properties more appealing in a market where affordability remains a key concern.​Specific neighborhoods are seeing even more dramatic price cuts. For example, in the 78722 zip code, 51.3% of the 39 active listings have had price reductions, with an average drop of $86,000, or -10.6%. This kind of pricing strategy, paired with lower interest rates, is creating a perfect storm for increased buyer activity as we head into the latter part of the year. In summary, the combination of improved interest rates, attractive listing prices, and the natural seasonality of the real estate market are all contributing to an upward trend in Austin's Activity Index. While 2024 has shown a slight overall decline compared to 2023, the current data suggests that the market may continue to strengthen as inventory tightens and buyer demand grows.

The Austin real estate market is showing signs of recovery as the Activity Index hits its highest point since July 2024. With improved interest rates and significant price reductions across active listings, pending sales have surged to their highest levels since August, creating a positive outlook for the remainder of the year

Austin Real Estate Market Sees Activity Index Improvement in September 2024

2024 Sees 21.4% Fewer Sales Between January and September September 23, 2024 : The Austin real estate market has seen a noticeable slowdown in 2024. From January to September, the <a href="https://teamprice.com/sales-density-population-and-realtors">number of properties sold in the Austin Area</a> per 100,000 population dropped by 21.4%. This decline marks a significant change in a region that has been known for its booming real estate activity. The latest data indicates that the real estate market in Austin is cooling, reflecting broader market trends that may affect both buyers and sellers. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240923011922.png" alt="" width="" height="" style=""></figure></div> Between the beginning of the year and September, <a href="https://teamprice.com/sales-density-population-and-realtors">cumulative sold properties</a> per 100,000 population have decreased compared to the same period in previous years. The dip in sales activity, particularly this 21.4% decline, has brought sales volume below the historical average. While some months showed signs of slight improvement, the overall downward trend has been clear. For instance, certain months experienced minor upticks in property sales, with gains of 2.4% or more. However, these gains were insufficient to offset the overall decrease. Historical trends in Austin show that the city has experienced fluctuating real estate activity over the past two decades. In years of robust economic growth and lower interest rates, the market saw significant increases in <a href="https://teamprice.com/sales-density-population-and-realtors">sales density</a>. However, 2024 presents a different picture. Buyers seem more hesitant, likely impacted by increased mortgage rates and concerns about affordability. Even though there have been occasional periods of market stabilization, the cumulative figures for 2024 reflect a consistent cooling trend. The 21.4% decrease is significant when considering the historical context. Over the past few years, Austin’s real estate market has been a hotspot for growth, with strong demand from buyers locally and from out of state. This year’s slowdown indicates that fewer properties are being sold, which could be attributed to changing economic conditions or potential shifts in buyer behavior. At the same time, the broader national market has seen similar slowdowns, reinforcing the idea that the real estate sector is entering a more cautious phase. While the cumulative decline from January to September is notable, there are still moments of optimism. Certain periods experienced growth, with <a href="https://teamprice.com/sales-density-population-and-realtors">sales density</a> increasing by over 12% during specific months. These spikes suggest that while the overall trend is downward, there are pockets of activity that show buyers are still engaging with the market. However, these short-term gains are not enough to reverse the broader 21.4% drop seen over the entire nine-month period. The long-term outlook for Austin's real estate market will depend on various factors, including interest rates, buyer sentiment, and affordability. While the 2024 slowdown presents challenges, the historical resilience of Austin’s market suggests that future growth is still possible once current economic pressures ease. For now, though, the data points to a market that is operating below its typical performance levels, and both buyers and sellers will need to adjust their strategies accordingly.

Discover key insights into Austin's real estate market with data showing a 21.4% decline in sold properties per 100,000 population from January to September 2024. Learn about the current market conditions and what the future may hold for buyers and sellers in this rapidly evolving market.

Austin Real Estate Market Sees 21.4% Decline in 2024: January to September Data

Why Austin Rental Prices Dropped in 2024: A Comprehensive Market Analysis September 21, 2024 : The Austin rental market, which has seen explosive growth over the past decade, experienced a notable shift in 2024. The <a href="https://teamprice.com/lease-price">average leased price in the City of Austin</a> as of September 2024 was $2,607, marking a significant decline from the highs observed in 2022. This drop is indicative of broader market adjustments, driven by a variety of factors that have altered the supply-demand dynamics in one of the country’s most competitive rental markets. In 2022, <a href="https://teamprice.com/lease-price">Austin rental prices</a> peaked, with the average leased price in September reaching $2,746. Since then, the market has cooled, and by September 2024, there was a $139 drop in the average leased price compared to two years prior. This decline reflects the market’s response to increasing inventory, a shift in demand, and possibly, the broader economic conditions affecting renters and landlords alike. In particular, the demand for rentals has lessened in some areas, and the increase in available rental units has further put downward pressure on prices. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240922023141.png" alt="" width="" height="" style=""></figure></div> The decline wasn’t isolated to September. <a href="https://teamprice.com/lease-price">City of Austin rental prices</a> throughout the year showed similar trends. For example, the average leased price in February 2024 was $2,669, down from $2,696 in 2023. March followed a similar pattern, with the average price dropping from $2,685 in 2023 to $2,644 in 2024. While the year-over-year declines seem modest, they indicate that the Austin rental market may have reached its peak in 2022 and is now stabilizing. Looking at longer-term data, the average leased price in January 2024 was $2,555, compared to $1,548 in January 2014. Over this 10-year period, rental prices increased by more than $1,000, reflecting Austin’s status as a rapidly growing urban hub. This growth has been fueled by a thriving tech sector, a steady influx of new residents, and Austin’s appeal as a top-tier city for lifestyle and business. However, the recent decline suggests that the market may be entering a new phase, where rental prices are no longer skyrocketing but are instead adjusting to the realities of supply and demand. The year-over-year percentage changes also offer a deeper understanding of these trends. From 2020 to 2024, the average leased price in Austin grew by 34.8%. However, this upward momentum has slowed, with certain months in 2024 seeing small declines compared to the previous year. For example, in August 2024, the average leased price fell from $2,605 in 2023 to $2,470, marking a 5.2% decrease. Similarly, September 2024 showed a slight dip compared to September 2023, with a decrease of -1.3%. One of the key reasons for this price moderation could be attributed to Austin’s rapidly growing rental inventory. As more housing developments come online, tenants are benefiting from a wider range of choices, allowing for more competitive pricing. Additionally, the economic uncertainty surrounding inflation and interest rates may have tempered demand for rentals, leading to slower price growth. Despite these recent declines, Austin’s rental market remains one of the most expensive in Texas. Over the last decade, rental prices have grown significantly, outpacing wage growth and making it one of the more challenging markets for affordability. However, the easing of rental prices in 2024 could offer some relief to renters who have faced sharp increases over the last several years. Austin’s rental market is also subject to seasonal trends. Historically, prices tend to peak during the summer months when rental activity is high. In 2024, the average leased price in June was $2,727, slightly down from $2,745 in 2023. July saw a more pronounced decline, with the average price dropping from $2,704 in 2023 to $2,619 in 2024. These fluctuations highlight how market conditions can change depending on the time of year, and why tenants and landlords should pay attention to seasonal patterns. In conclusion, while the <a href="https://teamprice.com/lease-price">Austin rental market</a> has experienced rapid growth over the past decade, 2024 marks a year of adjustment. The data shows a clear shift from the high peaks of 2022, with a consistent, albeit modest, decline in rental prices across various months. This could signal a broader trend toward market stabilization, offering renters more opportunities and potentially easing the pressure on affordability in the coming years.​

Austin rental prices saw a notable drop in 2024, marking a shift in the market after years of growth. This article provides an in-depth analysis of the reasons behind the decline, supported by comprehensive data on rental trends. Stay informed about the changes in Austin's rental landscape

Why Austin Rental Prices Dropped in 2024: A Comprehensive Market Analysis

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