Why are some Austin residents getting priced out of the city’s real estate market?
- by admin
Austin is one of the hottest real estate markets in the country, but residents of the metropolitan area say they are priced out.
A new report by the Austin Real Estate Institute (ARISE) found that prices have gone up faster in Austin than anywhere else in the U.S. and that the number of listings has jumped.
Some residents have been priced out for years because of construction or renovations, said ARISE executive director Brian Schulz.
“The problem for the most part is that the construction that’s going on is so rapid that the market doesn’t keep pace with that,” Schulz said.
The Austin real estate office has been collecting data on the market since 2006.
ARISE has identified some of the most notable price hikes in Austin.
It said that from 2006 to 2015, prices increased nearly 15 percent.
In 2015, the median home price in Austin increased by $1,846, compared to $1.18 million in San Antonio.
In 2017, prices in Austin were $1 and $1 million, respectively.
ARISE’s analysis shows that the median price in 2017 was $1 to $3 million, which is almost $1 billion higher than it was in 2006.
Austin has also seen a dramatic rise in the number and number of condos, townhomes and apartments.
The average home price of a single-family home in Austin has increased by more than $400,000 since 2006, compared with a median price of $170,000, according to ARISE.
This is a big problem for many Austinites.
They don’t have the options in their own market, Schulz noted.
While Austinites say the real estate bubble is slowly coming down, many in the community have seen a sharp spike in the price of houses and condos in recent years.
At the same time, Austin is experiencing its second housing crisis in three years.
The city has seen the number one vacancy rate in the state, which has risen from 6 percent in 2017 to 10 percent this year.
The shortage of housing is a major issue for residents in Austin, said Austin resident Dan Pappas.
“The housing market is in crisis and we are going to be forced to get creative in order to get more housing in,” Pappis said.
“We have to find the right balance of affordable housing and development.”
For Austinites like Pappias, who has been searching for affordable housing in the city for decades, the housing crisis has put him in a tough spot.
“It’s not fair for us to be priced out, especially when we have the largest population in the metro area,” he said.
“People have been pushed to the point where they can’t afford to live in Austin and have to move elsewhere,” Pappa added.
Schulz said he expects the current housing market to continue to be one of Austin’s biggest challenges for the next five years.
“I think there’s a real danger that the real property bubble is going to burst in the next year or two and we’re going to see the entire market crash,” Schutz said.
Austin is one of the hottest real estate markets in the country, but residents of the metropolitan area say they…
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