Austin's housing market cools but challenges remain
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The housing market appears to be cooling in Central Texas, but home prices are climbing in towns that were once considered to be way out in the boonies, per an Axios analysis of Zillow data.
Why it matters: People who were priced out during the pandemic may have more options now, but they will likely have to compromise on features, location and mortgage payments.
The big picture: The demand for houses outpaced supply at the height of the COVID-19 pandemic. The hype around the housing market, paired with supply chain disruptions, drove up prices even more.
Zoom in: Zillow data shows that average home prices decreased by more than 6% in some of Austin's northern suburbs between July and October.
- Homes in ZIP code 78613, which includes Cedar Park, saw the biggest drop in prices compared with other Austin-area ZIP codes.
- The average price in that ZIP code in October was around $561,000 — 6.6% lower than in July.
- Meanwhile, homes in Central Austin generally retained their value.
Zoom out: In the greater Austin area, prices have dropped by about 14% from the peak in May, going from a median of $560,000 to $480,000 in October.
Yes, but: Houses across the region remain pricey, posing a disadvantage for middle- and low-income families looking to replace their rent payments with a mortgage.
Meanwhile: Cities outside the immediate Austin area, where land is cheaper, experienced a spike in their average home price between July and October.
- The largest increases were east-southeast of Austin, in areas to the north and south of Bastrop. The typical home in the 78662 ZIP code, southeast of Austin, was $529,000 in October — almost 5.2% higher than in July.
Go deeper: Browse our interactive graphic to see how prices have changed in your ZIP code.