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Austin Months of Inventory Down 10.8% YoY | Austin Real Estate Market Update

Austin Months of Inventory Down 10.8% YoY | Austin Real Estate Market Update

Published 02/03/2026 | Posted by Dan Price

For the City of Austin, months of inventory are now down 10.8% year over year, moving from 4.93 months in Feb 2025 to 4.40 months in Feb 2026. That is a meaningful contraction in supply on a YoY basis and signals that Austin is tightening relative to last year, not loosening.

Zooming out to the two-year comparison, Austin is up just 1.1% versus Feb 2024. In plain terms, Austin’s inventory today is essentially flat compared to two years ago. That matters because it tells us Austin has already worked through most of its post-2022 inventory expansion and is now hovering near a normalized level rather than continuing to build excess supply.

The contrast with surrounding markets is important. Many nearby cities show double-digit to triple-digit increases in months of inventory over two years. Austin does not. That divergence suggests Austin remains structurally more resilient, with better demand absorption relative to supply than much of the surrounding metro.

From a market-phase standpoint, 4.40 months of inventory places Austin firmly in a balanced to mildly soft market, not a distressed or oversupplied one. Buyers still have negotiating leverage, but the leverage is no longer expanding. Sellers who price correctly are still finding demand, while overpriced listings continue to stall or require reductions.

The key takeaway is this. Austin is not following the broader regional inventory inflation trend. Inventory has tightened meaningfully year over year, and over a two-year window it has barely moved. That combination points to stabilization, not renewed weakness. Future price movement will hinge less on inventory growth and more on affordability, rate sensitivity, and how aggressively sellers respond to this tighter supply reality.

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