Austin Condo Inventory Hits Record High as Prices Remain in Deep Correction
The Austin real estate market is often judged by single-family home trends, but the condo segment is telling a sharper and more revealing story. In the Austin MLS area, residential condos are now facing a combination of record-high supply and materially lower prices, a pairing that defines one of the clearest correction cycles within the broader Austin housing market. By the end of 2025, condo inventory and pricing data together point to a market still working through excess supply rather than stabilizing. This matters because condos typically respond faster to changing market conditions than detached homes. As a result, condo data often provides early insight into shifts in demand, affordability pressure, and buyer behavior across the Austin real estate market.
Condo Prices Have Reset Well Below Peak Levels
Residential condo prices in the Austin MLS area reached their peak in April 2022, when the median sold price climbed to $470,045. That peak followed a rapid acceleration from 2020 through early 2022, driven by low interest rates and elevated demand across the Austin housing market. By November 2025, the median sold price for Austin-area condos had declined to $337,500. This represents a $132,545 drop from peak levels, or a 28.2% decline in median value. The size of this correction is notable, but equally important is its persistence. Rather than a brief pullback, the condo market has experienced a multi-year repricing process marked by lower highs and limited recovery momentum. Despite occasional seasonal upticks, pricing has consistently failed to reclaim prior ranges. Condo values today sit well below their pandemic-era highs, confirming that those peak levels were not supported by long-term affordability or sustainable demand.
Active Condo Inventory Ends 2025 at Record Highs
While prices have been declining, supply has continued moving in the opposite direction. Active residential condo listings in the Austin MLS closed December 2025 at 4,240 units, the highest year-end condo inventory level on record. For historical context, December inventory stood at 1,996 in 2022, 2,686 in 2023, and 3,612 in 2024. In just three years, active condo supply has more than doubled. The longer-term comparison is even more striking. In December 2019, the Austin MLS recorded just 677 active condo listings, meaning current year-end inventory levels are more than six times higher than pre-pandemic norms. Importantly, this is not a seasonal phenomenon. Condo inventory remained elevated throughout all months of 2025, with mid-year levels exceeding 5,200 active listings. The persistence of high supply into year-end indicates that listings are not clearing at a pace consistent with incoming inventory, a hallmark of demand-constrained market conditions.
Supply and Price Are Reinforcing the Condo Correction
The interaction between rising inventory and falling prices is central to understanding current Austin real estate trends in the condo segment. Elevated supply gives buyers more choice, increases competition among sellers, and places sustained downward pressure on prices. At the same time, declining prices signal to sellers that prior expectations are no longer supported, often prolonging listing timelines. This dynamic explains why the condo market has corrected more aggressively than other property types. Condos tend to attract first-time buyers, urban professionals, and investors, all of whom are highly sensitive to financing costs and monthly payments. As affordability tightened, demand adjusted quickly, while supply continued to build. From a market-structure perspective, the condo segment is still in the absorption phase of the correction cycle. Until inventory begins to stabilize or meaningfully decline, pricing pressure is likely to remain a defining feature of this segment of the Austin property market.
What Condo Data Signals for the Austin Real Estate Market
Condo performance often acts as a leading indicator within the Austin real estate market. The combination of a 28.2% price decline from peak and record-high inventory levels reinforces a broader theme within the Austin housing market update: buyers are price-sensitive, demand is selective, and supply must adjust to clear. This does not suggest systemic weakness across all housing types, but it does underscore how different segments respond unevenly to the same macro conditions. In the case of condos, excess supply and affordability constraints have extended the correction far beyond the initial post-2022 downturn. For agents, buyers, sellers, and investors, condo data provides a clear lesson. Pricing strategy, absorption expectations, and timeline planning must reflect current realities rather than peak-era assumptions. Treating the condo market like single-family housing increasingly leads to mispricing and extended exposure.
Frequently Asked Questions
Are Austin condo prices falling?
Yes. The median sold price for residential condos in the Austin MLS area is down 28.2% from its April 2022 peak. Prices declined from $470,045 to $337,500 as of November 2025, confirming a sustained correction within the Austin housing market’s condo segment.
Why is condo inventory so high in Austin?
Active condo listings finished December 2025 at 4,240, the highest year-end level on record. Elevated inventory reflects slower absorption driven by affordability constraints, higher financing costs, and reduced investor demand, all of which have limited buyer activity in the Austin real estate market.
How does the condo market compare to single-family homes?
Condos have experienced sharper price declines and faster inventory expansion than many single-family homes. This is largely due to higher demand sensitivity and the buyer profiles associated with condos, making them more reactive to shifts in the Austin housing market.
Is high condo inventory a sign of a market crash?
The data points to a correction and normalization process rather than a market collapse. Condo prices remain above pre-2020 levels, but the excess appreciation from the pandemic period has largely been erased within this segment of the Austin property market.
What do condos indicate for the Austin real estate forecast?
Condo trends suggest that future appreciation will be slower and more affordability-driven. Until inventory begins to contract meaningfully, the Austin real estate forecast for condos points to continued price sensitivity and selective demand rather than rapid recovery.
