Texas housing markets experienced a surge in popularity post-pandemic due to factors such as affordable housing, low taxes, relaxed COVID-19 restrictions, and the influx of major employers. Austin, in particular, saw rapid growth in its technology sector, attracting wealth from the West Coast and causing home prices to soar.
While Austin led the way in terms of price appreciation, Houston, Dallas, and San Antonio also benefited from similar dynamics. However, the momentum in Texas has slowed down in recent months as home prices have started to decline in all major metropolitan areas.
One of the most significant impacts has been felt in Austin, where the year-over-year median price change turned negative in late 2022. Despite a brief turnaround at the beginning of 2024, prices have been on a downward trend, with yearly declines averaging around 4.5%.
Inventory growth has been a key factor driving these changes, particularly in Austin where it tripled and quadrupled throughout 2023. Similar patterns have been observed in Houston, San Antonio, and Dallas, although not as pronounced as in Austin.
Dallas saw the highest year-over-year inventory spike among the major Texas metros, reaching a peak in April 2023. Inventory growth has since stabilized, with Austin, Houston, and San Antonio also experiencing more modest increases in 2024.
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