Austin, TX

Austin’s housing market is in trouble

Published

9 months ago

April 24, 2025

After having pulled through a dramatic home price correction over the past couple of years, the former pandemic boomtown of Austin, Texas, is now navigating even more troubled waters, as buyers scared off by brewing economic uncertainty are failing to show up for the city’s growing housing supply.

“Our market here was showing signs of price stabilization after unprecedented declines, as buyers re-entered the market after the 3 percent interest rate ‘hangover’ finally wore off at the beginning of the year,” Scott Turner, founder of Austin-based Riverside Homes, told Newsweek.

“But the economic uncertainty caused by tariffs and the risk of recession definitely affected their mentality, making them more cautious and leaving housing inventory levels at nearly an all-time high.”

The downtown skyline on April 11, 2023, in Austin, Texas.

Brandon Bell/Getty Images

Why It Matters

Between February 2020 and May 2022, the median sale price of a home in Austin jumped by more than 60 percent, according to Redfin data, reaching a peak of $659,500. The increase was mainly a result of the massive influx of out-of-state newcomers sparked by the rise of remote work, which allowed many Americans to relocate to more affordable, more livable cities and turn their back on expensive metropolises.

But the Austin housing market, which had become one of the most overheated in the country, experienced a significant slowdown after the pandemic, with return-to-office orders affecting the number of people relocating to the Texas capital. With a few notable exceptions, home prices have been consistently falling in the city, year-over-year, since late 2022.

The City’s Boom And Bust

“The story of the Austin housing market is basically the same as the national story, just a bit more dramatic,” Austin-based Joel Berner, senior economist at Realtor.com, told Newsweek.

“Following the peak of the pandemic, there was a major run-up in home prices amid record-low mortgage rates as buyers rushed to snatch up homes.”

Eldon Rude, a longtime housing market analyst based in Austin, told Newsweek: “Texas was one of several Sun Belt states that experienced significant in-migration between 2020 and 2022, which resulted in an imbalance in demand over supply for homes.

“Such strong demand, coupled with extremely low mortgage interest rates, resulted in significant increases in home prices in all of the major metropolitan areas in the state.”

The median listing price in the city jumped from $369,745 in April 2020 to $625,000 in April 2022, an uptick of 69 percent in just two years. At the same time, inventory plummeted, though it quickly recovered to pre-pandemic levels by 2023.

“Since then, inventory has continued to grow year-over-year, and March 2025 had more active for-sale listings in Austin than any March in our data history,” which dates to March 2017, Berner said.

But buyers are not exactly jumping on the chance of buying a home, even with more options available on the market.

“Just because home prices are coming down and there are more listings, doesn’t mean that prices are affordable. So there’s still a supply problem in cities like Austin,” Turner said. “I think only 25 percent of Austinites can afford to purchase a home at the median home price.”

Rude said: “With interest rates now higher than they were prior to COVID, coupled with a slower economy and less in-migration into the state, there are now fewer buyers in the market, and what buyers there are face affordability challenges given elevated home prices as well as higher mortgage payments.”

Berner said: “The supply growth has softened prices, and the median listing price in March 2025 was $510,000, down 7.2 percent from March 2024. It has been a slow year, with 12 consecutive months of prices falling year-over-year. The correction has come for Austin sooner and more significantly than the national housing market.”

According to Turner, home prices are now stabilizing after “an unprecedented drop.”

Despite a gloomy outlook for the city’s housing market’s short-term future, Turner said Austin’s economy remains robust.

“Our real estate market is returning to a ‘new normal’ in terms of supply and demand,” he said.

That is—as long as the Trump administration’s tariffs do not massively disrupt the city’s market even further.

“Austin’s economy outside of real estate is fairly diversified and still strong, but neither Austin nor Texas are immune to the impacts of a recession or tariffs, in the case of home building,” he said.

“It will take time for our market to work through this inventory, but despite Austin’s growth, much of this inventory remains unattainable for most Austinites, particularly with rates where they are, making matters worse.”

The Ripple Effect Of Trump’s Tariffs

Turner said that existing homes currently for sale on the Austin market are not going to be impacted much by the tariffs, but these are still influencing buyer behavior, making them “more cautious.”

For new home construction, on the other hand, “the impact of tariffs cannot be overstated,” Turner said. “Significant cost increases, particularly in Texas, where we are more reliant on imported building supplies, combined with falling prices would be devastating, not just to Austin’s market, but nationwide. If it gets worse, homebuilding could be the first major industry hit by ‘stagflation,’”

It is not only tariffs that are causing concerns among homebuilders in the U.S. and Austin—but uncertainty over whether the president would stick to these tariffs or change his mind.

“As homebuilders, we can’t easily adjust our business to such sudden changes,” Turner said. “We are getting notices from suppliers every week regarding price increases.”

Berner said that the direct effect of tariffs on the Austin housing market has not yet been felt, “but as an area with strong new construction activity, the tariffs on Canadian lumber especially will work to drive up the cost of newly built homes in the Austin metro.”

In recent years, the economist explained, builders in Austin have excelled at delivering affordable new inventory to the city’s market, and the median price of a new home in Austin is currently lower than the price of existing homes. That is due primarily to where the new inventory is being built, Berner specified, in outlying areas of the metropolitan area.

“This will be jeopardized by tariffs, as builders will be forced to pass on additional costs to new home buyers,” Berner said. “What we will see even sooner is the indirect effect of the tariffs on consumer confidence, dampening demand for home purchases and leading to another slow year of home sales in Austin.

“Unless mortgage rates drop significantly, we anticipate that depressed homebuyer sentiment will lead to continued price depreciation and low volume of home sales in Austin.”

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Austin, TX

LD Systems expands Texas Footprint with Austin Location and welcomes ILIOS Productions — TPi

Published

11 hours ago

January 8, 2026

Press Room

LD Systems expands Texas Footprint with Austin Location and welcomes ILIOS Productions — TPi

For over two decades, ILIOS Productions has been a key part of the live events community in Austin, TX, transforming spaces and audience experiences with a vast range of lighting and video design, as well as event production services across a diverse client portfolio. Now, with the backing of parent company Clair Global, LD Systems, a Houston-based premier provider of audio, video, and lighting for event production and installed technology solutions, is welcoming ILIOS Productions to the team, marking the group’s fourth location in Texas. ILIOS Productions will now operate under the LD Systems brand.

LD Systems will further resource ILIOS’ existing Austin operation to include additional services such as audio and rigging for live events, as well as integration solutions and services. This addition helps round out LD Systems’ ability to locally serve major metropolitan areas across Texas, including Houston, San Antonio, Dallas-Fort Worth, and Austin and reflects Clair Global’s continued focus on offering global resources while maintaining strong local-market expertise and responsiveness.

ILIOS Productions’ experience spans the concert and festival sector, corporate and activations, and high-end private, philanthropic and charitable events. The company’s commitment to critical event delivery has established trust with major brands including Lollapalooza, SXSW, Austin City Limits, Google, YouTube, the University of Texas System and many more.

Founder, President & Sr Ops Manager of ILIOS Productions, Bryan Azar, said: “After many years of working alongside LD Systems in Austin and beyond, we are delighted to be joining their world-class organisation. This is an exciting new chapter for a bolder future together.”

Zach Boswell, General Manager, ILIOS Productions, added: “We are passionate about the work we do, and the community and business culture found at LD Systems is the ideal next step for our dedicated employees to progress as a united workforce.“

LD Systems co-founder and President, Rob McKinley commented: “We are delighted to amplify our service offerings in Austin with the addition of Bryan and his exceptional team of technology professionals. They have made a significant difference to many Texans with the work they undertake, and LD Systems is proud to welcome both their talent and ethos to the company.”

Building on this momentum, LD Systems also announced plans to expand its San Antonio facility into a new location in January 2026. Together with the addition of ILIOS Productions in Austin, this investment reinforces the organisation’s long-term investment in Texas and its dedication to meeting growing client demand with enhanced capacity and infrastructure.

www.ldsystems.com

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Austin, TX

Austin airport one step closer to major expansion that will add 32 new gates

Published

23 hours ago

January 7, 2026

Press Room

Austin airport one step closer to major expansion that will add 32 new gates

AUSTIN, Texas — Austin-Bergstrom International Airport is one step closer to getting a major makeover after finalizing lease agreements with airlines that will support future renovations, including the addition of 32 new gates.

The airport on Wednesday announced the completion of Airline Use and Lease Agreements and Signatory Cargo Agreements with several major airlines and cargo companies, including Southwest Airlines, Delta Air Lines, United Airlines, American Airlines, Alaska Airlines, FedEx and UPS.

According to a press release from the airport, the use-and-lease agreements allow companies to commit funding to the project through rent and fees “generated under the agreements’ cost-recovery structure, supporting the airport’s ability to deliver projects that expand capacity, strengthen resiliency, and improve the passenger experience.”

The agreements will support the following projects at Austin-Bergstrom over the next 10 years:

The addition of Concourse B, which will add 26 new gates, including 18 for Southwest Airlines and five with United Airlines.
Concourse M, adding six new gates, a bus to transport travelers to and from the Barbara Jordan Terminal, new concessions, restrooms and passenger amenities.
Enhanced seating and amenities, increased space and modernized concessions in Concourse A (home to all international flights). Delta Air Lines will have 15 gates, American Airlines will have nine, Alaska Airlines will have one and there will be eight common-use gates.
Updates to HVAC systems, electrical system, IT and telecommunications, storm drainage, water quality and de-icing infrastructure.

In a statement, District 2 Councilmember Vanessa Fuentes applauded the future job creation that’s to come out of the project.

“This expansion program represents a tremendous economic opportunity for Austin—not only through the trades and construction jobs created during the buildout, but also through long-term jobs in concessions, airport operations, and airline services after the program is complete,” Fuentes said.

“This agreement reflects years of partnership, thoughtful negotiations, and shared vision with our airline partners. Their commitment provides the financial foundation we need to modernize our facilities, transform customer experience, and build the infrastructure needed to support Central Texas’ continued growth for generations to come. AUS would not be where it is today without the collaboration and investment of our airlines, and we are deeply grateful for their trust and partnership as we shape the future of air travel in Central Texas,” said Ghizlane Badawi, CEO of Austin-Bergstrom International Airport.

The final cost of the project is still under development, but is anticipated to grow from an estimated $4 billion to $5 billion. According to the airport, funding sources include airport cash reserves, airport revenues, bond proceeds and grants from the Federal Aviation Administration.

“No local Austin taxpayer dollars are used to fund the airport’s expansion program,” the release said.

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Austin, TX

Black Sheep Coffee Opens First Austin Location, Expanding Its Texas Footprint | What Now Austin

Published

1 day ago

January 7, 2026

Press Room

Black Sheep Coffee Opens First Austin Location, Expanding Its Texas Footprint | What Now Austin

Black Sheep Coffee, the international coffee brand, will celebrate the opening of its first Central Texas location in Downtown Austin with two public events. The new café, located at W 6th St & Guadalupe St, Austin, TX 78701, marks a significant step in the company’s U.S. expansion following strong growth throughout the Dallas–Fort Worth region.

A public ribbon-cutting ceremony, hosted in partnership with the Austin Chamber of Commerce, will take place on Thursday, January 15 from 12:00 p.m. – 2:00 p.m., welcoming community members, local leaders, and partners into the space. During the event, guests can enjoy half-price lattes, including coffee and matcha drinks.

On Saturday, January 17, Black Sheep Coffee will officially celebrate their grand opening with a Sips & Beats event from 11:00 a.m. to 2:00 p.m., featuring live vinyl set by DJ Foxxy Brown, signature menu tastings, and half-price lattes throughout the event. Continuing the celebration, the store will also offer a 50% discount to International Half Marathon medal holders on Sunday, January 18, welcoming runners and spectators to refuel post-race.

Designed to reflect Austin’s creative identity, the location features custom graffiti artwork inspired by the city’s street art scene and the energy of Downtown. The new outpost will serve Black Sheep Coffee’s complete menu, including its 100% specialty-grade Robusta coffee, ceremonial-grade matcha, smoothies, pastries, Norwegian waffles, curated food offerings, and two bakery variations created exclusively for the Austin store. Additional limited-time items will debut later in January as part of the brand’s functional health product refresh.

“Austin has long been on our radar for its passionate community and standout coffee culture,” said Eirik Holth, co-founder of Black Sheep Coffee in a statement. “We’re excited to become part of that fabric and bring something new to Downtown. With several U.S. locations in the pipeline, Austin marks a major milestone in our next chapter of growth.”

Black Sheep Coffee chose Austin for its strong alignment with the brand’s ethos and its reputation as a city that celebrates individuality and creativity. The opening also reinforces the company’s long-term commitment to Texas, with several additional locations planned statewide for 2026.

The Austin café will be open Sunday through Thursday from 6:00 a.m. to 8:00 p.m. and Friday and Saturday from 6:00 a.m. to 9:00 p.m. For more information, visit BlackSheepCoffee.us.

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