The pandemic had a significant impact on real estate and housing during 2020 and millennials had an impact. More people than ever worked from home (and continue to), which has led to increased demand for specific features in a home, such as a dedicated home office or gym. During the pandemic, we’ve also seen mortgage rates hover near historic lows, which has helped make houses more affordable.
The National Association of REALTORS® ranked the top 10 markets with the best opportunities for Millennial homebuyers, and Austin is on the list! We’ll explain why.
Housing affordability increased by 11% in Austin when comparing April 2019 and April 2020. The national average in the 100 largest metro areas is 9%.
The average inventory availability in the top 200 metro areas dropped 18%, but Austin only dropped 13%.
Strong Presence of Millennials
26% of residents are Millennials in the largest 100 metro areas. In 2018, 35% of Austin residents were Millennials, and in 2019, Millennials made up 20% of residents.
Lower Share of Workers Employed in Jobs Most Immediately Affected by Covid-19 Shutdowns
Covid-19 had a large impact on jobs and industries. Austin stayed under the national average of 21% of the share of employed in most affected sectors, with only 20% impacted.
Fewer Job Losses During the Pandemic
The average percentage of job losses during the pandemic was 13%. Austin came in at 9% when compared to April of 2019.
When comparing the data from April 2020 to April 2019, Austin’s affordability score increased by 11%! Active and new listings decreased, as expected since the city was in lockdown during that time. In the first quarter of 2020, the median home price was $341,500. The November 2020 statistics release from the Austin Board of REALTORS® (ABoR), the median sales price was reported $365,000. In April 2020, 33% of listings were considered “affordable” for the typical household.
According to ABoR statistics, months of inventory, average days on market, and active listings decreased. This means that houses are selling faster, compared to November 2019. The median sales price increased by 19%, and closed sales increased by 23%. This means that more houses were selling and for more money, as compared to November of 2019.
If you need some advice about the market or if you’re ready to make a move, please reach out to our experienced, professional team anytime or fill out the form below: