Austin ranks No. 1 on best US housing markets for growth, stability list (2024)

FAQs

Where does Austin rank in the housing market? ›

“The Austin-Round Rock-Georgetown metro area ranks No. 1 overall, thanks in large part to home values that have skyrocketed in the last 25 years,” the study said. “Between 1998 and 2022, home prices increased by 353.92%, the most cumulative growth in our study, without much downside.”

Austin is also No. 1 on the U.S. News & World Report's ranking of Best Places to Live in Texas for 2023-2024. San Antonio, Dallas-Fort Worth, Killeen and El Paso took the rest of the top five spots on that list.

With its growing economy and low taxes, Austin is an attractive investment location for real estate investors. In addition, the city's job market has seen 8% growth in the past year, and Forbes recently ranked it as one of the best cities for job seekers in 2021.

Austin has the 3rd most active real estate market in the U.S. within the last decade. Austin had the third highest number of single-family home permits between 2013 and 2022. A new report has discovered Texas cities hold the top five most active real estate markets in the country, with Austin landing in third place.

Austin's current dollar GDP totals $194 billion in 2021, making it the 22^nd largest U.S. metropolitan economy. On the basis of population in 2021, the Austin metro ranks 28^th. At the time of last year's release of this data, Austin's GDP ranked 24^th.

Firstly, it is important to note that the Austin housing market has been experiencing an unprecedented level of demand over the past few years. This demand has been driven by a combination of factors, including a strong local economy, a growing population, and an influx of out-of-state buyers.

1. Old Enfield. Old Enfield is the richest neighborhood in Austin. Situated only 2.7 miles north of Downtown, this area's unique character is defined by its historic architecture, elegant estates, and well-furnished public parks.

Austin is the most expensive city in Texas for a night out, and 3rd priciest in the U.S.

The Austin market is “arguably the largest housing bubble in America based on the fundamental data,” Reventure Consulting CEO Nicholas Gerli said in May. While it takes about five years for a market to crash, Gerli predicted a 30 percent to 40 percent decline in home prices in Austin over the next three years.

Are housing prices in Austin dropping? ›

Driving the news: Average home prices in greater Austin have fallen by more than 10% between July 2022 — when the market peaked — and April 2023, according to the Zillow Home Value Index.

It's true: Austin's housing market is booming and few would disagree that buying a house in Austin isn't a smart move. With an average annual appreciation rate of 7.28% (and a 20%+ appreciation rate for the past 2-3 years), it's safe to say that buying a house in Austin can certainly pay off.

Austin's population increased 33 percent between 2010 and 2020, and its booming job market makes it one the top places for migrating talent.

The Austin real estate market has been hot for the past couple of years, with home prices jumping nearly 20% each year. While home prices will continue to increase in the Austin area in 2023, transactions will slow a bit. Austin home sales are forecasted to decline by 6.6%, while prices will continue to increase by 3%.

Is it a good time to buy a house in Austin? While Austin isn't a cheap place to buy a home, the real estate market here is looking quite a bit more buyer-friendly in 2023. More sellers have been dropping their prices, according to data from Redfin, and properties are staying on the market longer.

In Texas, you'd need an adjusted gross income of at least $594,000 to be in the state's top 1% of earners.

A 'millionaire growth rate' of 102% puts Austin at the top of the list. Both West Palm Beach and Miami, Florida, made the top five list, along with Scottsdale, Arizona and Greenwich/Darien, Connecticut. Each of the top five cities saw growth rates of more than 70% over the decade.

Why is Austin getting so expensive? ​ A big reason this city has seen such a boom in prices lately is the announcement of some of the major tech companies moving here. Tesla, Google, Apple, and others have opened headquarters in and around Austin in the last few years.

Chart and table of population level and growth rate for the Austin metro area from 1950 to 2023. United Nations population projections are also included through the year 2035. The current metro area population of Austin in 2023 is 2,228,000, a 2.39% increase from 2022.

What is the hottest real estate market in Texas? ›

Some call Austin the “Silicon Valley of the South” in response to its booming tech activity. Austin's economic prosperity, even in light of the pandemic, and wealth of diverse talent make it a red-hot frontrunner for real estate investors in 2021.

According to the analysis, which considered census and income data, you need to make more than $142,000 to be considered rich in Austin. The study also lists Austin's median income as $72,000 and says you have to earn $424,507 to be included in the top 1 percent.

Fair Oaks Ranch

With a population of around 9,900 according to the recent census report, this city has become an attractive destination for those seeking luxury living. Known as the wealthiest place in Texas, Fair Oaks Ranch offers its residents fine dining options, top-ranking public schools, and high incomes.

Georgetown, a suburb north of Austin, once again saw the fastest pace of growth in the country with a rate of 14.4%, surpassing its 10.5% rate from 2020 to 2021.

The No. 1 city on the list is Austin, Texas. According to the report, the Texas city saw a millionaire growth rate of 102% from 2012 to 2022. In December 2022, Austin was home to 30,500 millionaires, 86 centi-millionaires, and nine billionaires.

Austin is a popular place to move to due to its thriving job market and lower cost of living compared to other major tech hubs like San Francisco and New York City. Additionally, Austin is known for its world-renowned live music scene, festivals, outdoor activities, and unique local cuisine.

The cost of living in Austin, TX is -38.4% lower than in New York, NY. You would have to earn a salary of $36,973 to maintain your current standard of living. Employers in Austin, TX typically pay -16.3% less than employers in New York, NY.

Austin is routinely lauded as one of the best places to live in the United States, thanks to its warm weather, thriving economy and bustling cultural scene. But if you're considering moving to Austin, you'll have lots of different options for places to live, from family-friendly suburbs to densely packed urban areas.

Will house prices go down in 2023 in Texas? ›

While some areas may experience an increase in housing prices, others may experience a decline. In Dallas, TX, housing prices are expected to decrease by 0.1% as of April 2023, followed by a further decline of 0.3% in June 2023, but are projected to increase by 0.7% by March 2024.

Austin is a Sellers Housing Market, which means prices tend to be higher and homes sell faster.

AUSTIN, Texas — After a red-hot Austin housing market, a new report from Zillow shows us just how quickly it's cooling off. The average home value in the Austin area is down 12% since the record highs we saw in June.

Looking forward, Zillow expects Austin metro home prices to continue falling. As of February 2023, they predicted that the median value would dip by another 1.5% over the next 12 months.

As the demand for housing continued to rise in Austin in the early months of 2022, builders of both homes for sale and for rent ramped up production, with the number of building permits pulled nearing 4,400 in March 2022.

Apartment rent keeps going up in Texas, and in Austin the increase is nearly 10 percent more than last year, making it increasingly difficult to afford living in the city.

Nationally, 81% of properties were cheaper to rent. In Austin, Texas, 95% of properties were cheaper to rent than own.

Houses. Houses provide tenants with more privacy, more space, and a little more freedom. Yards can provide outside areas for relaxation and a place for your dog to wander and roam. However, houses are typically further away from work and social areas and also lack some of the amenities of apartments.

To illustrate the price of rent in Austin is to draw a steep, steep hill. But for the past few months, that hill has leveled off as landlords have dropped rent prices. April rent numbers marked the first annual decrease in average rent since early 2021, according to data from ApartmentData.com.

Travis County — home to Austin — attracted the largest group of California residents, according to the Express-News data analysis. And it's not just residents leaving the Golden State. According to news channel CBS 13, 153 California companies relocated from California to other states in 2021.

Is Austin worth moving to? ›

Its affordable cost of living is one of the top reasons Austin is considered one of the best places to live in the United States. Even though it may be on the affordable side, Austin is thought to be a bit pricey when comparing it to other cities in Texas.

As of October 2022, Austin, Texas, was the second fastest-growing city in the United States. The American Growth Project report identified those booming cities based on “industry growth potential; labor flexibility and readiness; skills levels and gaps; and the urban/rural economic divide.”

2023 is a balanced year for housing supply and demand. This is ideal for retail purchasers and rental property investors. No longer a “seller's” market. Rising interest rates raise the monthly mortgage payment, which reduces homebuyers and lowers property values.

In Austin, median home prices increased approximately 2.5% compared to the previous month, bringing the median price for a single-family home to $585,000.

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

Austin-Round Rock Metro's home values are expected to drop by 1.4% between March 2023 and March 2024. According to their forecast, the supply and demand dynamics will likely push down prices over the next 12 months.

Robust Job Market

As mentioned above, Austin's thriving job market consistently ranked in the top 10 cities for job seekers, especially for tech jobs. In addition, it makes it an attractive investment destination due to the high demand for rental properties from employees relocating to the city for new opportunities.

Austin is a natural hot spot for real estate investors because its continued growth creates demand and opportunity for investors. Austin's population topped 961,000 last year according to 2020 census data, a gain of 21.7% from over the last 10 years.

Driving the news: Average home prices in greater Austin have fallen by more than 10% between July 2022 — when the market peaked — and April 2023, according to the Zillow Home Value Index.

Learn why Austin, Texas is leading the charge as one of the US' fastest-growing and most promising commercial real estate investment markets. Austin ranked as one of NAI's top 10 commercial real estate markets in 2020, projected to outperform the rest of the country.

Is Austin housing a bubble? ›

The Austin market is “arguably the largest housing bubble in America based on the fundamental data,” Reventure Consulting CEO Nicholas Gerli said in May. While it takes about five years for a market to crash, Gerli predicted a 30 percent to 40 percent decline in home prices in Austin over the next three years.

Austin is a popular place to move to due to its thriving job market and lower cost of living compared to other major tech hubs like San Francisco and New York City. Additionally, Austin is known for its world-renowned live music scene, festivals, outdoor activities, and unique local cuisine.

Pro: Taxes Aren't So Taxing in Texas

One of the BIG reasons to move to Texas from California is the taxes. California state income tax is the highest in the country, on all levels. Californians pay as much as 13.3% in state income tax and, depending on local rates, between 7.25% and 10.75% in sales tax.

According to the analysis, which considered census and income data, you need to make more than $142,000 to be considered rich in Austin. The study also lists Austin's median income as $72,000 and says you have to earn $424,507 to be included in the top 1 percent.

That's the takeaway from a new Bankrate analysis of nearly 200 housing markets around the country. The personal finance website ranked the top most attractive and active housing markets and found that Gainesville, Georgia, was No. 1.

Affordable property values: San Antonio is known for its affordable property values, making it an attractive option for investors looking to buy rental properties in Texas. The city's low cost of living and strong job market also contribute to its real estate investment appeal.