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Austin housing market “distress” sees prices slashed by over 30 percent

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Austin housing market “distress” sees prices slashed by over 30 percent


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.

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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.

A home available for sale in Austin, Texas, on May 22. The once-hot Austin housing market is now quickly cooling as oversupply meets dwindling demand.

Brandon Bell/Getty Images

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.

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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.”



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Austin, TX

Fire destroys abandoned E Austin auto shop

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Fire destroys abandoned E Austin auto shop


Austin firefighters battled their second major fire Thursday afternoon, responding to an abandoned East Austin auto shop engulfed in flames.

Crews responded to 3100 Manor Road around 4 p.m., AFD said.

No injuries were reported and no one was inside the building.

ALSO | 40+ residents displaced in North Austin third-alarm apartment fire, no injuries reported

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The incident was called in as a first alarm. The building is a total loss, according to officials.

CBS Austin has a crew on the way to the scene.

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Earlier in the afternoon, firefighters extinguished a three-alarm fire in north Austin.

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Austin, TX

Austin road rage suspect identified, charged with criminal mischief: affidavit

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Austin road rage suspect identified, charged with criminal mischief: affidavit


The suspect in a violent road rage incident on the Capital of Texas Highway has been identified and charged, according to court paperwork.

The altercation was caught on camera.

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What we know:

34-year-old Ian Kevin Brinkmeyer has been charged with criminal mischief, a Class B misdemeanor, in connection with the Dec. 5 incident.

At around 2 p.m. that day, officers responded to a call for service on Capital of Texas Highway, where they spoke with Brinkmeyer and another man.

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The affidavit says Brinkmeyer “engaged in a road rage” with the other man while traveling north on Capital of Texas Highway. Brinkmeyer drove around the other man, changed lanes in front of him and cut him off before stopping his car.

Brinkmeyer then allegedly got out of his vehicle holding a “steel knife sharpening rod”, walked over to the other man’s car and struck the driver’s side door window with the rod, shattering the entire window.

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The affidavit says Brinkmeyer then quickly walked back to his car and drove off.

The entire incident was caught on video by other drivers and posted on social media.

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The affidavit says that the repairs to the shattered window cost about $480, making this a case of criminal mischief with a value between $100 and $750.

What’s next:

A warrant has been issued for Brinkmeyer’s arrest. As of 12 p.m. Dec. 11, he is not in custody.

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The Source: Information in this report comes from court paperwork and previous reporting.

Crime and Public SafetyAustin



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Day Trips: Gifts From All Over Texas • The Austin Chronicle

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Day Trips: Gifts From All Over Texas • The Austin Chronicle


Holiday gift giving means it’s time for a road trip.

Maceo’s Spice & Import Company (maceospice.com) in Galveston is the perfect destination for the chefs and eaters on your list. Not only is the island city decorated for the holidays, but the 81-year-old specialty shop has an expansive selection of spices and hard-to-find imported foods. The house-made tomato gravy and pesto sauce are highly recommended. While you’re there, treat yourself to a muffaletta sandwich and a bowl of gumbo.  

If someone on your holiday gift list is a New Orleans Jazz and Heritage Festival fan, head to Santo at the intersection of I-20 and U.S. 281. Kennedy’s Sausage Hometown Market (kennedyssausagehtm.com) makes the original Crawfish Monica Sauce (minus the crawfish) from Jazz Fest. The market sells other frozen foods that can be found nowhere else except maybe their other store in Stephenville. 

At Santo you’re 16 miles south of Mineral Wells, so drive to the Crazy Water Company for a case of Texas’ original mineral water. 

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Any NPR listener would be proud to proclaim their support by wearing this unique t-shirt designed by the late West Texas artist Boyd Elder Credit: MPR

If you can’t make a road trip during the hectic days leading up to the holiday, then shop online. One of the pleasures of traveling Texas is finding the friendly voice of National Public Radio. Small radio stations were hit hard after the elimination of federal funding for public media. For instance, Marfa Public Radio lost a third of its funding. Consider making a gift to one of the 44 public stations in Texas in someone’s name. Or purchase a very cool T-shirt from Marfa Public Radio (marfapublicradio.org) as a way of making a donation.

Want a gift with staying power? Give a personalized brick to support the renovation of the historic Bolivar Point Lighthouse (bolivarpointlighthouse.org). The red brick with their name on it will be used as a paving stone at the lighthouse across the channel from Galveston.

Purchasing a customized brick for the 1872 Bolivar Point Lighthouse not only supports the renovation, but is the gift that keeps giving for years to come Credit: Gerald McLeod

Feliz Navidad, y’all. 


1,784th in a series. Everywhere is a day trip from somewhere. Follow “Day Trips & Beyond,” a travel blog, at austinchronicle.com/day-trips.

A note to readers: Bold and uncensored, The Austin Chronicle has been Austin’s independent news source for over 40 years, expressing the community’s political and environmental concerns and supporting its active cultural scene. Now more than ever, we need your support to continue supplying Austin with independent, free press. If real news is important to you, please consider making a donation of $5, $10 or whatever you can afford, to help keep our journalism on stands.

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