If you’ve been watching the Austin housing market over the past few years, you know it’s been a bit of a rollercoaster. Sky-high prices, limited inventory, rising mortgage rates—it’s been tough out there for buyers. But lately, there are a few signs that we might be turning a corner.
Rates Have Likely Peaked
Let’s start with the big one: interest rates. After a long stretch of aggressive hikes, it looks like the Fed is finally done (for now). We’re probably at the floor when it comes to rate hikes, and while we’re not seeing major cuts just yet, the worst seems to be behind us. That’s good news for buyers who’ve been waiting for some relief.
Austin Inventory is Up
Here’s something we haven’t seen in a while: inventory is actually growing. As of late March, there are over 14,000 active listings in the Austin area—a 13% increase from last year. And with about 5.4 months of inventory available, we’re moving closer to a balanced market (finally!). That means buyers have more options and sellers are facing a bit more competition.
Affordability Is Still a Struggle, But There’s Hope
Sure, the median home price is still high—around $564,000—but it’s not climbing as fast as it used to. And here’s the really encouraging part: Austin is on track to deliver more affordable housing in 2025 than any other U.S. city. That includes a wave of multifamily units and some really creative solutions—like local churches developing affordable housing on their land. Yes, you read that right.
Lawmakers Are (Kind Of) Pitching In
Even the Texas Legislature is trying to help. A few new bills are aimed at increasing the housing supply, including one that lets builders create smaller-lot homes in new neighborhoods. It’s not a silver bullet, but it’s a step in the right direction.
So, What Does This Mean for You?
If you’re a buyer who’s been on the sidelines, this could be your moment to re-engage. Rates are steady (and may even come down later this year), inventory is up, and competition isn’t as fierce as it was during the peak frenzy.
And if you’re a seller? You’ll still find plenty of motivated buyers out there—but pricing and presentation matter more than ever.
Bottom line: We’re not in a full-blown buyer’s market, but we’re also not in the wild west of 2021 anymore. Austin’s housing market is starting to find its balance, and that’s something we can all appreciate.
