As the pandemic finally winds down and another Texas Summer heats up, the Austin real estate market continues to climb to greater and greater heights. ABoR’s latest monthly market update for May, released June 15th, reports a new average home price of $566,500 – the highest for any month on record in the City of Austin – and a 34% year-over-year increase. Just three months prior, in February of this year, the average home price in Austin was $491,000.
“Austin’s housing market has become one of the most competitive markets in the U.S.,” Susan Horton, 2021 ABoR President, said. “As new companies relocate to Austin and the city’s popularity draws in new residents, the sheer demand for housing has created a critical inventory shortage, reinforcing that affordability and accessibility to housing across our region is a real concern and should be a top priority for local leaders.”
Earlier this month, Austin City Council unanimously decided to raise the local homestead exemption from 10% to 20% in an effort to alleviate some of the financial pressure on middle-income families. With steadily increasing home prices, consistently low inventory and a lack of centrally-located land on which to build single-family homes, the effort to provide affordable housing options has become an essential focus for Austin policy makers.
“The market can seem difficult to navigate to the average consumer,” continued Horton, “because it is fast paced, and transactions are becoming increasingly complex. This is why it is so important to work with a Realtor who understands the market and can help you find a home that fits your needs and your budget.”