Prices fell faster in Austin, in part because the market was among the most overvalued in the country. A recent study by Florida Atlantic University ranked Austin as the second most overvalued housing market in the country. But is that true? Ashley Jackson, president-elect of the Austin Board of Realtors (ABoR), joined KVUE Midday to learn more. Austin is outperforming other Texas cities when it comes to development rates for builders., and house prices have skyrocketed.
In the process, anti-development advocates have used the slogan “Keep Austin weird” to protest against new housing. Austin also recently ended its mandates that required that a certain number of parking spaces be built with each new home, a move that is also expected to reduce housing costs. Demand for housing in Austin has increased over the past decade, driven largely by the move of major technology companies, such as Apple, Amazon and Tesla, to the city. That said, given that Austin home prices have fallen by double digits in just nine months, it's fair to say that Austin is also complying with this criterion.
By analyzing housing data from Zillow and third-party housing data providers, researchers found that the average price of a home in Austin has far exceeded the expected price and has continued to rise. This housing correction, which has hit Austin the hardest, is mild and moderate compared to the housing crisis of the 2000s. Until relatively recently, Austin was better known as Texas' quirky, liberal, and affordable paradise for college students, musicians and artists.
