Hot is no longer the right word to describe the Austin real estate market. Thanks to the little supply and high demand, the market is extreme, overheated, and supercharged. The lack of supply and increase in demand makes it one of the most competitive housing markets in the country. But why and how?
Homebuyers have continued to move into the area. A Census Bureau report from March 2020 shows that the Austin-Round Rock-Georgetown population increased by almost 30% from 2010 to 2019, and it’s still growing! But supply isn’t. Realtor.com published a housing market report for the nation in the first week of April that showed property listings have decreased by -72.7% in just one year!
The national growth rate from 2010 to 2019 was 6.9%. The Austin-Round Rock-Georgetown metro area was almost five times that at 29.8%! Austin is having a substantial above-average growth rate. In that same period, Texas’ population also increased by 17%. The same 2020 Census Bureau report said three of the top ten metros areas with the most significant gains from 2010 to 2019 were in Texas. Dallas-Fort Worth-Arlington was the first with a 19% population increase, then Houston-The Woodlands-Sugar Land with an increase of 19.4%, and Austin with 29.8%. It helps explain why the Austin real estate market got so competitive so quickly. And a competitive market creates multiple-offer scenarios, bidding wars, offers above the listing price, and more.
Austin Real Estate Inventory
That same Realtor.com report in April shared some critical trends in the Austin real estate market. From March 2020 to March 2021, the total number of active real estate listings in the Austin-Round Rock-Georgetown metropolitan area declined by -72.7%. Among the 50 metro areas in the report, Austin had the most significant decline in real estate inventory. This decline is why home prices have dramatically increased.