Austin’s Housing Market: A Closer Look at PITI

Published 06/11/2023 | Posted by Dan Price

Austin, the crown jewel of Central Texas, is witnessing a real estate frenzy. With a burgeoning tech industry and a renowned live music scene, the city and its neighboring counties – Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet – are magnets for new residents. However, this influx has also led to soaring housing prices.

The Monthly Mortgage Payment, or PITI (Principal, Interest, Taxes, Insurance), is a critical gauge of affordability. In June 2023, a staggering record was set when PITI in the Austin area hit $3,777. This figure is calculated using the median sold price of homes, assuming a 20% down payment, and the 30-year mortgage rate for that month.

To put this into perspective, let’s rewind to the year 2000. Back then, PITI was a mere $1,125 in January and only slightly rose to $1,195 by December. Fast-forward to June 2023, and the PITI has ballooned by over 230%.

What’s astonishing is the rapid pace of this increase. In June 2023, the median sold price of a home in the Austin area was $495,000, a spike of $30,000 or 6.5% from the previous month. Yet, when compared year-over-year, the median price has seen a decline of $40,000 or 7.5%.

This rollercoaster trend signifies that although there was a year-over-year reduction, the costs are still incredibly high and the monthly fluctuations are unpredictable. The reduction might not actually be indicative of a market slowdown, but rather a slight readjustment.

The implications of these soaring costs are far-reaching. First-time homebuyers may find it increasingly difficult to enter the market. Additionally, long-term residents could struggle with the rising property taxes associated with increased home values.

As Austin continues to thrive and attract new residents, it is crucial for potential homebuyers to be mindful of these trends. A keen eye on the market and consultation with real estate professionals might be the key to navigating this exuberant housing market.

Ultimately, the soaring PITI serves as a reminder of the double-edged sword of progress and growth. Austin’s desirability is undeniable, but as more people flock to be a part of this dynamic city, the strain on housing affordability is inevitable.

*This article is based on historical data and trends, and the housing market may undergo changes after the time of writing.

Keep reading other bits of knowledge from our team.

Request Info

Have a question about this article or want to learn more?

Central Texas MLS | Four Rivers Association of REALTORS® All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than Team Price Real Estate may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2022 All rights reserved.

© 2023 North Texas Real Estate Information Systems, Inc. All rights reserved. Disclaimer: All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Team Price Real Estate shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. The database information herein is provided from and copyrighted by the North Texas Real Estate Information Systems, Inc. NTREIS data may not be reproduced or redistributed and is only for people viewing this site. All information provided is deemed reliable but is not guaranteed and should be independently verified. The advertisements herein are merely indications to bid and are not offers to sell which may be accepted. All properties are subject to prior sale or withdrawal. All rights are reserved by copyright

The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Based on information from the Austin Board of REALTORS®. Neither the Board nor ACTRIS guarantees or is in any way responsible for its accuracy. All data is provided "AS IS" and with all faults. Data maintained by the Board or ACTRIS may not reflect all real estate activity in the market.

MLSGrid IDX Data Notice
DMCA Notice

Information provided Courtesy of LERA MLS - Local Expertise Regional Access. IDX information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is believed to be accurate but not guaranteed. Provided courtesy of the San Antonio Board of Realtors. Copyright 2025 LERA MLS, All Rights Reserved.

IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed.

Austin’s Housing Market: A Closer Look at PITI

Published 06/11/2023 | Posted by Dan Price

*This article is based on historical data and trends, and the housing market may undergo changes after the time of writing.

Austin’s Housing Market: A Closer Look at PITI | Team Price Real Estate

Austin’s Housing Market: A Closer Look at PITI

Published 06/11/2023 | Posted by Dan Price

Related Articles

Request Info

Search

Explore

About

Resources

Company

Austin’s Housing Market: A Closer Look at PITI

Published 06/11/2023 | Posted by Dan Price

Related Articles

Request Info