Austin/ Real Estate & Development
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Published on June 17, 2024
Austin Housing Market Cools Dow, Home Prices Nearing Normalcy as Rent Declines Offer Relief to ResidentsSource: Unsplash / Dillon Kydd

The Austin housing market, once notorious for its exorbitant prices, is presenting a more affordable facade, with rental and housing prices moving towards a semblance of normalcy. According to a study by Florida Atlantic University, the capital of Texas now ranks No. 87 in the nation for housing costs—prices were reported to be down significantly from their peak two years ago. Researchers found the average home cost stands at $470,662, a modest 12.46% above what historical data would suggest.

Drastic changes in the Austin market are closely linked to the rental landscape, where a surge in housing construction brings promises of stabilization. Austin witnessed a substantial 7.2% decline in asking rent prices in May, as reported by Redfin. With around 26,000 new apartment units expected to be delivered this year alone, experts believe the supply increase is a significant factor behind the rent decrease.

FAU Housing Economist Ken H. Johnson elucidated that Austin, which was previously the nation's second-most overpriced housing market, has seen a price drop of 17 to 18% in two years. "Our new data shows you're going to be down about 17 to 18% in terms of price. Now all of a sudden price is barely above the long-term trend," Johnson told KXAN. He attributes Austin's shifting housing market to its rental trends, where flattening rental prices are likely to closely follow house pricing trends.

Austin renters now find themselves with increased bargaining power in an uncharacteristically softening market. The Executive Director for Austin's Apartment Association, Emily Blair, advised that renters should capitalize on this opportunity by negotiating terms with property owners. "I think it's great to ask them what type of units do they have if they represent other properties as well, if they have any incentives, if there's any sort of security deposit," Blair told KVUE. With rents beginning to steadily soften, the housing market in Austin is transforming, potentially giving more people a chance to call this bustling city home.

Austin-Real Estate & Development