The median price of a single-family home in the city of Austin was $407,400 in May, up 5.8% year over year, according to the latest monthly report from the Austin Board of Realtors, which was published June 20.

This new record price coincides with a drop in both new and active listings as well as a 3.4% drop in home sales in the city. 

Surrounding areas, however, “experienced strong gains” in the same period, according to the report.

“A lack of middle-market housing in the city of Austin is driving demand to the suburbs,” ABoR President Kevin Scanlan said in a statement. “While the Central Texas housing market is healthy and thriving, Austin continues to struggle with housing options that are affordable for first-time homebuyers as the median price surpasses $400,000.”

Such expensive home prices have negatively affected Austin ISD, which has seen its enrollment drop by roughly 5,000 students over the last five years in a trend that is projected to continue.

Reyne Telles, executive director of communications and community engagement for the district, attributed the drop in enrollment in part to rising home prices.

“In order to adapt to this new reality and work toward increasing our student population, the school district now allows students who reside outside of AISD’s boundaries to transfer into our schools,” Telles said in a statement.

The district is also in the process of consolidating some of its campuses in an attempt to better use district resources.

Real estate trends in the city of Austin do not reflect what is happening in surrounding areas.

In the Austin-Round Rock metro area, year-over-year single-family home sales increased 6.2% in May even as the median price rose 4.2%—to $335,095—in the same period, according to the ABoR report.

In comparison, year-over-year single-family home sales in the city of Austin decreased by 3.4% in May even as the total sales revenue for homes sold during that period increased by 7.1%, “illustrating higher price points and a tightening market,” the report reads.