Northwest Austin home prices dip from April to May, but still trending on torrid pace

North Austin home for sale
Northwest Austin housing prices in May rose by more than 40% year over year. (Iain Oldman/Community Impact Newspaper)

Northwest Austin housing prices in May rose by more than 40% year over year. (Iain Oldman/Community Impact Newspaper)

The median price of homes across Northwest Austin fell by about $50,000 compared to April’s housing market, according to a new real estate report.

Regardless of that month-over-month dip, the overall market pace in Northwest Austin continues to skyrocket from where the real estate market stood last year. According to the May 2021 Central Texas Housing Market Report from the Austin Board of Realtors, the median price of a single family home in Northwest Austin rose more than 40% from this point last year. That matches a similar increase seen in April’s housing report.

The median price of a single family home in the Northwest Austin market, as defined by the six ZIP code area where Community Impact Newspaper is distributed, now stands at $590,000. The median price for all residential properties—including single family homes, townhouses and condominiums—was $536,150 in May.

Citywide, the median home price increased 34.9% year over year to $566,500. That is the highest median price recorded for any month in the history of the city of Austin, according to ABoR.

“Austin’s housing market has become one of the most competitive markets in the U.S.,” said Susan Horton, 2021 ABoR president, in the organization’s June 15 news release. “As new companies relocate to Austin and the city’s popularity draws in new residents, the sheer demand for housing has created a critical inventory shortage, reinforcing that affordability and accessibility to housing across our region is a real concern and should be a top priority for local leaders.”

On June 15, ABoR presented its market analysis of the local real estate landscape to the city of Austin’s Housing and Planning Committee. According to that presentation, the median sales price for homes in Austin has risen by more than $110,000 over the past 6 months.

Data collected by ABoR shows home prices are outpacing wage growth in the Austin area. Over the past decade, household incomes have grown 38% while the median home price in Austin has risen by 138%.

The realtor organization estimates that an Austin household with a median income of $71,576 could afford a home priced at $248,000 with a down payment. That price is approximately half the current median home price citywide.

“We are in a housing shortage, which is causing unprecedented spikes in home prices,” said Greg Casar, Austin City Council member for District 4 and chair of the Housing and Planning Committee, in a June 15 statement. “Our city must bring forward policies to change this trend, and increase the number of homes available for people who are working class and middle class. That means updating our land development rules, providing a diversity of housing types and quickly deploying our antidisplacement funds approved by the voters as part of Project Connect.”

Austin City Council voted June 10 to double the city’s homestead property tax exemption. The vote came one week after members approved a separate increase in exemptions for senior and disabled city homeowners.

The city's previous 10% homestead tax exemption was lifted to 20%, meaning property owners will receive a 20% reduction on their appraised value if they reside in the home.
By Iain Oldman
Iain Oldman joined Community Impact Newspaper in 2017 after spending two years in Pittsburgh, Pa., where he covered Pittsburgh City Council. His byline has appeared in PublicSource, WESA-FM and Scranton-Times Tribune. Iain worked as the reporter for Community Impact Newspaper's flagship Round Rock/Pflugerville/Hutto edition and is now working as the editor for the Northwest Austin edition.


Minnesota-based Rockler Woodworking and Hardware will open a location in La Frontera in late September. (Brooke Sjoberg/Community Impact Newspaper)
Rockler Woodworking and Hardware coming to Round Rock

Minnesota-based Rockler Woodworking and Hardware is coming to La Frontera in Round Rock in late September.

The proposed Wild Ridge master-planned neighborhood northeast of downtown Dripping Springs would include 960 homes on 40- to 60-foot-wide lots. (Courtesy City of Dripping Springs)
Master-planned neighborhood in Dripping Springs to bring 960 homes, new roads

The proposed development by Meritage Homes would feature amenities such as a disc golf course.

YogaSix will open in mid-September at 14028 N. US 183, Ste. 110, Austin. (Courtesy YogaSix)
YogaSix studio opening at Lakeline Market in Northwest Austin

The locally owned franchise offers six types of yoga classes such as beginner yoga and sculpt classes.

Q&A: Greg Smith, executive director of Fast Growth School Coalition

Greg Smith is the former superintendent of Clear Creek ISD and became executive director of Fast Growth School Coalition in December 2020. 

Photo of the Travis County sign
Travis County proposes tax rate for 2021-22 fiscal year, prepares for budget approval process

Due to increasing property values, the property tax rate is expected to be around $0.017 lower in the coming fiscal year.

Photo of school supples
Parents weigh in: What are your considerations heading into the 2021-22 school year?

Community Impact Newspaper seeks parent feedback as we prepare for our annual education edition.

Williamson County Sheriff’s Office
Sheriff’s office requests pay increases during Williamson County budget process

The Williamson County Sheriff's Office said its officers are paid less than law enforcement officers in city departments countywide.

Williamson County courthouse
Williamson County proposes lower tax rate ahead of final budget vote Aug. 31

The tax rate will go to support a recommended $440.5 million total operating budget.

Photo of the Austin Police Department
City of Austin certifies Save Austin Now's petition to increase police staffing, adding it to fall ballot

The measure would require two police officers for every 1,000 area residents, among other provisions.

Photo of a doctor with a pregnant woman
Austin health experts warn delta variant could pose higher risk for pregnant women

Maternal medicine doctors across Central Texas have seen increasing numbers of pregnant women coming to the hospital with breathing issues and pregnancy complications as a result of COVID-19.

Wayback Burgers makes cooked-to-order burgers and hand-dipped milkshakes. (Courtesy Wayback Burgers)
6 eateries open or coming to Cedar Park, Leander; Trudy's North Star reopens in Northwest Austin and more Central Texas news

Read the latest business and community news from the Central Texas area, including Tiff's Treats opening in Hutto.

Trudy's Tex-Mex courtesy photo
Trudy’s North Star reopens with renovated restaurant, new menu

The restaurant underwent recent renovations to its dining rooms, exterior dining spaces and bar areas.