Austin’s housing market is in “acute distress” as newly built homes continue flooding the market at the same time as sales plummet in the Texas capital, according to a new study by Parcl Labs.

The former pandemic boomtown has been building more homes than most of the country in the past five years, as demand and prices skyrocketed during the health emergency when so many out-of-state Americans wanted to move to the city.

According to Parcl Labs, which analyzed 300 U.S. housing markets to identify high-growth areas with substantial new construction exposure, Austin is among the top five American cities with the biggest growth in the rate of single-family housing stock since 2019 at 6.87 percent.

The list also included Boise City, Idaho (9.51 percent); Lakeland, Florida (8.30 percent); Raleigh, North Carolina (7.80 percent); Jacksonville, Florida (7.17 percent). At the national level, new construction has grown by a much more modest 1.9 percent since 2019, before the pandemic started.

The problem now is that demand for new homes in Austin has plunged significantly compared to the levels recorded in the booming years of the pandemic. While new construction accounted for 40 percent of sales in early 2021, according to Parcl Labs, in June, they accounted for only 9.7 percent—below the national average.

This steep decline has outpaced the drop in new listings: as of June, 21.6 percent of homes listed for sale in Austin were new builds. According to Parcl Labs, this indicates a “demand cooldown” in the Texas capital. By comparison, the U.S. average for new builds is about 10 percent of listings.

Prices for new builds have also dropped in the city. Parcl Labs experts believe that Austin is facing “a reality check” as the market is seeing an average price cut of 7.23 percent on new builds, “with some properties slashed by up to 31.33 percent, indicating very motivated sellers.”

According to Parcl Labs, Southeast Austin, in particular, has emerged as a hotspot for price reductions. ZIP codes 78747 and 78744 see average cuts of 21.41 percent and 16.98 percent, respectively. The east and northeast areas of the city—ZIP codes 78725 and 78653—are also reporting price cuts exceeding 11 percent.

“This pattern suggests that newer, rapidly developed areas on the outskirts of Austin are facing the most intense price pressures,” Parcl Labs experts wrote.

Newsweek previously reported about entire new neighborhoods being abandoned mid-construction or right after construction by developers as the Austin housing market flipped in favor of buyers.

According to Redfin’s latest data, the median sale price of a home in Austin was $562,750 in June, down 6.2 percent from a year earlier. That same month, 776 homes were sold, down from 1,016 last year.

For Parcl Labs researchers, Austin’s story “is beginning to serve as a cautionary tale for other booming markets. It demonstrates how quickly the tide can turn in the new construction sector, and how even the hottest markets can quickly face the cold reality of oversupply and waning demand.”

AUSTIN, Texas – Lake Austin glimmers under the Texas sun Wednesday as boaters cruise back out. It’s a stark difference from Tuesday night when police taped off the entrance to the water near the Walsh Boat Landing because of a death.

“Oh no, you know, if there’s a police investigation, we don’t know if we are going to be able to come over here,” said Hannah.

She wasn’t sure if she’d be able to go boating on Wednesday because of the body found Tuesday, August 6.

“It is really unnerving to think that I could have potentially come here and stumbled across something, you know, that would be completely life-changing and very traumatic,’ said Hannah.

It was bystanders who called Austin police to Scenic Drive on Lake Austin.

“This call for service was responded to in a timely manner,” said APD Officer Austin Zarlign. “Multiple bystanders advised there was an unknown person floating in the water. “

First responders said they found a black man in his 60s unresponsive.

“Unfortunately, the person was ultimately pronounced deceased at approximately 8:15 p.m. due to the state in which the body was recovered, there is very little information at this time,” said Zarling.

Police said there was no apparent trauma to the man’s body, but the homicide unit is investigating.

MORE STORIES:

“That’s kind of making me feel like there’s something more eerie going on out there,” said Thomas O’Connor, an Austin resident visiting the Walsh Boat Landing.

This case comes after a string of other deaths at or near Lady Bird Lake.

Police did not deem all of them suspicious, but after so many deaths, residents here said they can’t help but think something unusual is up, and whatever it is, they hope it ends soon.

“One way or another, hopefully, we can get to the bottom of this sooner or later,” said O’Connor.

Police believe this is an isolated incident, and there is no threat to the public.

“I hope they figure out who did it, justice is served, and hopefully, whoever’s family it was, they get the closure and the answers that they are looking for because it’s obviously a horrible event,” said Hannah.

Former Texas A&M men’s tennis player Austin Krajicek spoke with KBTX following his trip to the Paris Olympics.

Krajicek and Rajeev Ram won the silver medal in men’s doubles after falling in a close-fought gold medal match to Australia (6-7, 7-6, 10-8). Highlighted during his silver medal run was a quarterfinal win over Spain’s superstar duo of Rafael Nadal and Carlos Alcaraz (6-2, 6-4).

Watch the attached video for Krajicek’s thoughts on his stay in Paris, playing for Team USA, and being a part of the Aggie community at the Olympics.

Copyright 2024 KBTX. All rights reserved.