Austin may soon be the least affordable place outside of California to own a home

AUSTIN (KXAN / Austin Business Journal) – Experts soon predict Austin may be the least affordable place outside of California to own a home.

Outlook from online real estate company Zillow suggests that if current trends continue, Austin homeowners will be spending just over 30% of their monthly household income on a mortgage by the end of the year. Anything above 30% is considered “housing crowded” and the outlook assumes mortgage rates to remain stable. Some experts believe mortgage rates will rise with inflation over the next few months.

While Austin is currently more affordable than the Miami, Seattle and New York markets, Zillow predicts the three generally expensive markets will be below 30% by the end of the year.

“We have seen median house prices increase year over year, in the range of 30-40% in our area,” said Jeni Williams, deputy director of government affairs on the board of directors of ‘Austin.

She said Zillow’s plans reflect what they’ve seen in recent months.

“We have also seen inventory become increasingly scarce due to the fact that demand has increased so much,” said Williams. “And registrations have also increased but unfortunately do not meet this demand.”

“It’s definitely more limited than before,” said Clair Daly, who has been looking for a home in the northern Austin / Pflugerville area since January.

She considers herself lucky; she stays in her family’s AirBnb while she searches for a home in a context of tight supply and rising costs.

“I want to buy a house now, but now it’s the most expensive it has ever been, but in another year it will be the most expensive it has ever been. So now really is kind of time to jump in, ”Daly said.

She said she sees ads in her budget, but they go fast.

“It’s just about being quick and having someone who can kind of give you a heads-up that something’s going on in this area,” Daly said.

She works at Twelve Rivers Realty and said having a good real estate agent has been key to bidding on two homes.

Affordable housing spending

This week, city council members allocated about $ 79 million for affordable housing.

A city spokesperson said the funding will go to four housing and planning department programs for tenants and buyers: rental assistance, home ownership assistance, non-profit contracts and land acquisitions. .

“There are no quick fixes to our overall housing situation here in Austin,” said Williams.

Williams said the funding primarily targets low to moderate income families and does not address affordability or supply for everyone, such as median income households.

“We encourage city leaders to take an ‘all of the above’ approach to focus on enabling the development review process to be more streamlined, effective and efficient,” she said.

While policy changes and funding won’t change the trend for the Austin metro by the end of the year, she said it will go a long way.

For more on the subject, visit the Austin Business Journal website.

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