The real estate market in Central Austin continues to show strong gains. Here are five residential trends based on recent market data and reports.
The number of new homes entering the Central Austin market more than doubled from 2011 to 2016, according to data provided by the Austin Board of Realtors.
More than 550 homes were built in 2016 compared with 167 in 2011, ABoR data reveals. So far in 2017, 255 homes were built between January and May.
According to May’s ABoR market analysis, 167 single-family homes have been built in Central Austin this year, compared to five townhomes and 83 condominiums.
“Central Texas is one of the region’s largest and fastest-growing regions in the country,” ABoR President Brandy Guthrie said.
Although demand for housing is obvious in Austin, she said, the types of housing—townhomes, duplexes, fourplexes and condos, known as “missing middle” housing—has been limited.
“Having the inventory and the available types [of housing]is going to be very important to encourage homeownership,” Guthrie said.
In April, Austin City Council adopted the Strategic Housing Blueprint, which recommends the city add 135,197 housing units by 2027.
According to city staff, Austin has not created much alternate or missing middle housing types since the 1940s largely because of regulatory constraints, a lack of demand and increased incentives to build single-family homes.
Additional reporting by Christopher Neely
2. 78704 is the hottest Central Austin area to buy a home so far in 2017
Since January, the most homes in Central Austin have been sold in the 78704 ZIP code.
The area south of Lady Bird Lake, which includes the Zilker, Bouldin Creek, Galindo, Barton Hills, South Congress, Travis Heights, Dawson and South Lamar neighborhoods, had 333 homes sold from January to May, according to the Austin Board of Realtors.
The second-hottest market was the East Austin ZIP code of 78723, which includes Mueller and Windsor Park.
Median home prices in 78704 have jumped from $469,161 in 2015 to $539,600 in 2017, according to ABoR data.
April saw the highest number of new listings on the market so far in 2017 with 152.
3. Median price of Central Austin home jumps $200,000 over 6 years
Statistics from the Austin Board of Realtors show the median price of a Central Austin home reached $490,000 in May, a nearly $205,000 increase from May 2011.
May was the highest-grossing month for Central Texas real estate in the region’s history, according to ABoR. The total sales dollar volume for single-family homes in the Austin-Round Rock Metropolitan Statistical Area topped $1.2 billion in May.
“Rising property values and housing development costs are rapidly causing an upward shift in the price range of residential real estate available within Austin and across the region,” ABoR President Brandy Guthrie said.
4. 4 Austin neighborhoods make top 50 U.S. list for most new apartments
Four Austin-area neighborhoods made the list in a nationwide analysis of new apartment units that have come online since 2010.
The neighborhoods of North Burnet, downtown Austin, Zilker and University Campus ranked 19th, 22nd, 44th and 49th, respectively, according to RentCafe, a nationwide apartment search website.
North Burnet has added 2,739 units since 2010, according to the May report. Two Dallas neighborhoods and four Houston neighborhoods also made the top 20.
5. New report finds Austinites need to make $23 an hour to afford a 2-bedroom apartment
A report released June 8 by the National Low Income Housing Coalition found that to afford a two-bedroom rental apartment, Austin-Round Rock MSA residents need to earn $23 an hour.
That’s $47,840 per year in income, or more than three times the state’s minimum wage of $7.25.
The average rent in the Austin-Round Rock MSA and Travis County is $1,195 a month for a two-bedroom apartment and $799 for a one-bedroom apartment, according to the coalition.