Austin Housing Market: Trends & Prices
Austin Real Estate Market Overview
(Last Updated – 12/2021)
Chances are you’ve heard a lot about Austin lately. This Southwestern hot spot is all the rage thanks to its hip art, music, and food scenes. And the tech industry in Austin is booming, which is attracting high earners to the city.
Is the average home price in Austin rising because of tech? Probably in part. Real estate experts also think the latest jump in prices stems from a convergence of factors related to the pandemic, low interest rates, and a lack of inventory.
Austin home prices in 2021 were up 40% compared with the year before, according to Zillow. Is the market overheated? Home values had been rising steadily since 2012, but the most recent surge elevated Austin to the second-most-overvalued market in the country, based on a recent ranking by Florida Atlantic University and Florida International University. According to the research, the Austin housing market was overvalued, on average, by 57% in October 2021.
Frothy or not, the City of the Violet Crown (so named because of the color of the sky at sunset) holds appeal. Since 2010, Austin has grown in population by 34%, according to the latest census data. In the last year alone, the Austin metro area grew by 3%, ranking it No. 1 for fastest population growth among metro areas with 1 million residents. Given the large migration, low housing inventory, and low interest rates, it’s no surprise that Austin home prices have risen so significantly.
Austin, with lower home prices than, say, San Francisco or Los Angeles, lures not only techies and music lovers but also foodies. If health is top of mind, Whole Foods is headquartered downtown.
Recommended: Local Housing Market Trends by CityOverall Austin Market Trends
Welcome to Austin, where sellers should have no problem offloading their homes, but buyers need to be ready to compete.
According to Redfin, some homes for sale in Austin receive multiple offers. Typical homes sell for 1% above list price and go pending in 35 days. Hot homes sell for about 5% above list price and go pending in around 16 days.
Recommended: Price-to-Rent Ratio in 50 Cities$569,450
Median Sale Price
$326
Avg. Price Per Square Ft.
35 days
Avg. Time on Market
Austin Housing Market Forecast
There is no denying that house prices in Austin have seen a significant increase. The chart below illustrates the upswing that began in 2012.
Real estate experts don’t expect the trend to stop any time soon. Especially as Tesla neared completion of Gigafactory Texas, Austin was expected to attract more wealthy investors and more people looking to start or advance their careers to this booming tech hub.
Demographics of the Austin Market
Some consider Austin to be one of the best places to live in the United States (the city took fifth place in a U.S. News analysis), and it’s pretty obvious why. Not only does the city offer music festivals, art exhibits, and food fairs, but nature lovers will find what they need too.
The nearby Zilker Nature Preserve and Lady Bird Lake offer amazing views and a chance to escape the city for an hour or two. Families and active singles will have plenty of ways to fill their weekends and make memories in Austin.
Before making a move and buying a home, though, consider some of the key demographics of the Austin real estate market.
Recommended: Home Ownership ResourcesMedian Income: $71,576
Median Age: 33.3
College Educated: 51.7%
Homeowners: 45.1%
Married: 42.6%
Popular Austin Neighborhoods
Austin has many great neighborhoods to choose from, but let’s shine a spotlight on five of the biggest.
North Austin
If you like to walk to work or run errands, North Austin may be a good fit for you. This neighborhood isn’t the most pedestrian-friendly neighborhood in the city, but you’ll definitely have the option of walking to some of your favorite spots.
There are almost 100 restaurants, bars, and coffee shops to choose from, and most residents can walk to one of these establishments in just five minutes.
Quick Facts
Population:
167,104
Median Age:
32
Housing Units:
68,965
Bike Score:
62
Walk Score:
52
Transit Score:
46
Average Household Income:
$77,294
North Austin Housing Market
The North Austin housing market is going places. Since last year, average home prices have risen by 14.3%. Some North Austin homes receive multiple offers and go pending in around 34 days. In-demand homes can go pending in 21 days.
Median Sale Price
$430,000
Average Price Per Square Ft.
$269
Franklin Park
This is a primarily residential neighborhood known for having affordable housing options and some commercial buildings. The close proximity to downtown and the University of Texas will surely be appealing to students.
A large state park borders the eastern side of this neighborhood and offers hiking, camping, fishing, and other outdoor activities.
Quick Facts
Population:
50,123
Median Age:
30.2
Housing Units:
16,481
Bike Score:
44
Walk Score:
38
Transit Score:
38
Average Household Income:
$62,172
Franklin Park Housing Market
Don’t get your hopes up for scoring a deal in Franklin Park. Prices rose nearly 30% since last year, and homes typically sell for 3% above the list price.
In-demand homes can sell for 5% above list price and go pending in about 15 days.
Median Sale Price
$390,000
Average Price Per Square Ft.
$368
West University
West University may be a college town, but anyone can enjoy the lively feel of this neighborhood. While the home of the University of Texas at Austin won’t be the most quiet neighborhood, there will be no shortage of fun events, great food, and school pride.
Quick Facts
Population:
34,549
Median Age:
21
Housing Units:
10,818
Bike Score:
94
Walk Score:
91
Transit Score:
63
Average Household Income:
$48,216
West University Housing Market
The real estate market in West University is considered not very competitive, although the median sale price rose 16% since last year.
Typically, homes have been selling for 2% under list price in this neighborhood and stay on the market for around 58 days.
Median Sale Price
$328,000
Average Price Per Square Ft.
$399
Windsor Park
This neighborhood is home to charming ranch-style homes that provide a classic Texas feel. The family-friendly neighborhood has access to lots of parks and playgrounds. For parents who need to commute, downtown is just 15 minutes away.
Quick Facts
Population:
35,725
Median Age:
34.5
Housing Units:
15,079
Bike Score:
67
Walk Score:
55
Transit Score:
42
Average Household Income:
$87,072
Windsor Park Housing Market
The Windsor Park housing market is considered only somewhat competitive by Redfin, so you have a good shot at finding a home here amid the family-friendly vibes. The median sale price was up 31% in October compared with that month the prior year.
Houses in Windsor Park sell for around list price, with some receiving multiple offers. The typical home goes pending in 41 days.
Median Sale Price
$551,000
Average Price Per Square Ft.
$400
Garrison Park
This quiet neighborhood is conveniently located near both major highways that serve the area, making commuting a breeze.
When you want to stay closer to home, there are tons of stores and restaurants to choose from, including charming cafes.
Quick Facts
Population:
61,907
Median Age:
36
Housing Units:
28,390
Bike Score:
65
Walk Score:
50
Transit Score:
37
Average Household Income:
$80,652
Garrison Park Housing Market
In this moderately competitive real estate market, some sellers can look forward to receiving multiple offers and only having their house on the market for around 36 days. In October, prices had risen by 21% year over year.
Buyers should expect typical homes to go for around 1% above list price and popular homes to go for about 5% above list price.
Median Sale Price
$478,000
Average Price Per Square Ft.
$334
SoFi Home Loans
It’s easy to see why Austin has become such a popular market to buy a home in. There are some really amazing neighborhoods to choose from whether you’re young and single or have a family to look after.
If you think Austin could be your home sweet home, then you may need to consider your mortgage loan options.
If you’re buying a home or refinancing an existing mortgage, SoFi can help you make the process as quick and painless as possible.
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