Renting remains cheaper than buying in Austin
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Almost 95% of Austin homes remain cheaper to rent than to buy, despite falling home sale numbers and prices, according to a new analysis from online real estate company Redfin.
Context: That's well above the national average of 81% and just slightly below the nation's most unaffordable metros, like Los Angeles, San Francisco and Seattle.
By the numbers: Home sales nationally declined 22.7% year-over-year in April compared to 14% in the Austin metro area, per the Austin Board of Realtors.
- The average sales price for the metro fell 15.1% to $466,705 compared to April 2022, the Board of Realtors found.
Yes, but: Mortgage rates have nearly doubled, while rent is down 1.8% year-over-year, according to Zillow's April rent report.
- In the city of Austin, the average monthly rent is $1,873, per Zillow.
The intrigue: Before the pandemic-era housing boom and steep interest rate hikes, many Austinites were able to lock in mortgages on condos or starter homes.
The bottom line: This analysis underscores our increasingly unaffordable housing market.