How to Navigate Austin’s Very Weird Real Estate Market Right Now
We’re in a really unique moment right now, and if you’re trying to make sense of it as a buyer or seller, you’re not alone. To understand where we are, you have to go back to 2021. Interest rates were under 3%, and home values jumped in many areas by close to 30% in less than a year. It was unsustainable, and over the past two years, the market has been correcting. Some neighborhoods—especially those feeding into highly rated schools—have held their value pretty well. Others have dropped closer to 2020 pricing.
Now we’re in what I would call a housing gap.
This isn’t a great market for most people to sell in, which has created a major inventory issue. If someone has a home that works for them and a sub-3% interest rate, they’re staying put. That means a large portion of the inventory hitting the market right now is coming from investors, relocations, divorces, or longtime homeowners cashing out. You’ll see homes that haven’t been updated in decades sitting right next to investor flips—and not a ton in between.
Is Austin Still Growing? What Migration Trends Mean for the Housing Market
During the pandemic years Austin experienced one of the largest population booms in the country. Between 2020 and 2022 the Austin metro added nearly 95,000 new residents through migration alone, fueled largely by remote work, tech expansion, and people relocating from higher-cost states. 2021 in particular was the peak of that movement, and it played a huge role in why housing demand and home prices accelerated so quickly during that time. When thousands of people move to the same city at once, the housing market naturally feels that pressure.