The impact
To address the growing concern for affordable housing options in the Central Texas area, including Southwest Austin and Dripping Springs, officials with the Austin Board of Realtors, along with other housing experts, will convene at a summit July 26 to brainstorm solutions designed to ensure the future of the region's housing market is equitable and sustainable.
What they're saying
“For the second year in a row, ABoR is hosting a summit focused on the state of the region’s housing market, the need to prioritize housing and how to enact change for the future,” 2023 ABoR President Ashley Jackson said. “Yes, inventory is increasing and median prices have declined, but this does not mean no action is required to address the region’s housing affordability issues. We are seeing the market normalize after years of record-setting pace, but it is our job to help the region’s housing market fundamentally improve so that anyone that wants to buy a home here can find one within their budget.”
A closer look
For the month of June, the median home price in Southwest Austin and Dripping Springs was $623,000, down 7.7% compared to June 2022.
Southwest Austin-Dripping Springs is not alone with this downward trend, as median home prices throughout Travis County decreased by 9.8%, from $611,500 to $550,000 in June 2023.
While prices continue to plummet, inventory is steadily rising, according to the ABoR report. In June 2023, there were 3.8 months of inventory for the Southwest Austin-Dripping Springs area, compared to 1.8 months of inventory in June 2022.
Put in perspective
Clare Losey, ABoR housing economist, said she sees a market that has held steady but still needs increased inventory to house our region’s growing population—despite the jump seen in June 2023.
“Overall, the moderation in home prices throughout the region over the past year has eased the affordability constraint posed by higher rates, but more work needs to be done across the region and into the future to fully address this challenge," Losey said in a news release July 13. "The Central Texas region simply needs more inventory—particularly at price points affordable to first-time buyers—as home prices remain elevated relative to incomes across the region.”
Losey added that the region’s economy is a major factor in the housing market’s performance.
“The diverse and resilient economy that has been built in Central Texas, particularly over the past two decades, is instrumental in helping the region, and our housing market, withstand less than ideal economic conditions," Losey said. "It is important to remember that the market continues to moderate in the wake of unsustainable price growth and sales activity during the pandemic, but remains robust. The median sales price in the MSA appreciated by nearly 50% from June 2019 to June 2023. The ability to buy a home remains the best way to create generational wealth, and that needs to be more accessible to everyone.”
