Austin Luxury Market Booms While Affordable Housing Supply is Lagging
Austin Business Journal December 15, 2021 |RESIDENTIAL REAL ESTATE|”Report: Luxury homes account for nearly a quarter of sales volume in Austin” by Michelle Pitcher
Read the Austin Business Journal for all the details.
Summary by 2244
Tarrytown, Austin, Texas home.
“Statewide between November 2020 and October 2021, nearly 90% more homes sold for $1 million or more compared with a year prior…[for] $19.9 billion”-up 93%. Austin accounted for 23% of this volume compared with 13% statewide. In Austin, luxury sales were up 102% for a total of $5.2 billion, peaked in June and have now declined slightly. The housing inventory generally is low in Austin but the luxury inventory is about double at 1.9 months of supply. Despite the high entry point of $1 million, buyers don’t find “what [they] might expect at that price point” because what were affordable houses are now priced higher. The median Austin price is $482,364 with an average close to $500,000.
Meanwhile, the ‘uber-level luxury” market, homes listing at $10 million and above, “has exploded.” This trend is being driven, in part, by “high-profile and celebrity buyers” purchasing in Austin at $15 million and up. These prices are much higher than before but those relocating from other affluent areas often don’t find “$10-$15 million…a concern.” The underlying driver of demand has been Austin’s attractive “business climate” and an appealing “lifestyle.”
To the contrary, of the luxury market, “the Austin area’s affordable housing market continues to struggle…” The city is “lagging far behind its goal to create 60,000 new homes affordable to residents earning less than 80% of the median family income-$79,100 for a family of four.”