The State of Real Estate in Austin
When’s the best time to buy residential real estate in Austin?
About ten years ago.
Jokes aside, the housing market in the U.S. has been booming since 2021.
We’ve seen buyers offering hundreds of thousands over asking prices, property values skyrocketing, and even renters getting priced out.
But in Austin, this trend started much earlier. According to Austin Chamber data, Austin has been attracting an influx of new residents since the Great Recession recovery began in 2011 — and it hasn’t slowed since.
At NEST, we care because housing is often the largest expense, asset, and investment for many individuals. Real estate ties directly into your financial health and future planning.
To really understand the Austin market, we spoke with an expert: Mark Strüb, founder of STRÜB Residential Group, a powerhouse in Austin real estate for nearly 20 years.
What's the State of Austin’s Real Estate Market?
Austin’s real estate growth started after the Great Recession and has continued through today.
Several factors accelerated demand:
Digital migration
COVID-19 shifting focus toward quality of life
Historically low mortgage rates
While interest rates added fuel to the fire, the local economic engine was already roaring.
Housing prices surged, and supply struggled to catch up.
Is Austin's Real Estate Overvalued?
Yes, by definition.
According to Fox 7 Austin, Austin homes cost far more than what the median local salary supports.
With a 2020 median income of $75,752, affordable housing should be around $250K.
Instead, the median home price hit around $650K by mid-2022.
Despite this, it doesn't mean a market crash is coming.
Even during the Great Recession, Austin’s home prices plateaued — they didn’t collapse.
Is It a Good Time to Buy or Sell?
Austin remains a seller’s market — there’s less than six months of inventory.
However, it's still a good time to buy:
Rent = 100% interest — buying, even at a higher mortgage rate, builds equity.
Home appreciation historically outpaces inflation in Austin.
Many first-time buyers mistakenly believe they need 20% down or are locked into 30-year terms. Not true — low down payment options exist.
How Will Rising Interest Rates Affect Austin’s Market?
Rising rates will have effects, but they may not slow Austin’s momentum as much as you think.
Mark predicts rates may stabilize or even drop, reigniting the local buying frenzy.
Even with higher borrowing costs, Austin’s desirability and low housing supply will keep demand strong.
Key Takeaways Before Buying or Selling
If you're selling:
Prep and stage your home.
Work with an expert agency like STRÜB to maximize your return.
If you're buying:
Understand that waiting could cost more.
Don’t buy into myths — options like low down payments exist.
Buying beats renting long-term, even with higher rates.
Housing, Finance, and NEST
At NEST, we view real estate as a major part of holistic financial planning.
Whether buying your first home or diversifying your investments, your housing decisions should align with your financial goals.
If you’d like to see how buying or selling a home fits into your bigger financial picture, schedule a no-obligation call with us. We've helped Austin individuals, families, and entrepreneurs thrive for nearly 30 years.
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DISCLAIMER:
We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and are not financial planning or investment advice.
For personalized guidance, email info@nestfinancial.net.