Austin, TX

Austin’s housing market is in trouble

Published

10 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

A total lunar eclipse will turn the moon blood red on Tuesday

Published

2 hours ago

February 27, 2026

Press Room

A total lunar eclipse will turn the moon blood red on Tuesday

A blood-red moon will soon grace the skies for a total lunar eclipse — and there won’t be another until late 2028.

The spectacle will be visible Tuesday morning from North America, Central America and the western part of South America. Australia and eastern Asia can catch it Tuesday night. Partial stages of the eclipse with small bites taken out of the moon can be seen from Central Asia and much of South America. Africa and Europe will be shut out.

Solar and lunar eclipses happen due to a precise alignment of the sun, moon and Earth. There are between four and seven a year, according to NASA.

The eclipses tend to follow each other, taking advantage of the sweet spot in the celestial bodies’ orbits. Tuesday’s total eclipse of the moon comes two weeks after a ‘ring of fire’ solar eclipse that dazzled people and penguins in Antarctica.

During a total lunar eclipse, the Earth is between the sun and full moon, casting a shadow that covers the moon. The so-called blood moon looks red because of stray bits of sunlight filtering through Earth’s atmosphere.

The show unfolds over several hours, with totality lasting about an hour.

Compared to a solar eclipse, “the lunar eclipse is a little more of a relaxed pace,” said Catherine Miller at Middlebury College’s Mittelman Observatory.

For those in the path, there’s no need for any special equipment to observe — just a clear, cloudless view of the sky.

Use a forecasting app or any online celestial calendar to look up the exact timing for your area. Venture outside a few times to see Earth’s shadow darken the moon, eventually revealing the reddish-orange orb.

“You don’t have to be out there the whole time to see the shadows moving,” said astronomer Bennett Maruca with the University of Delaware.

There’s a partial lunar eclipse on the docket for August, visible across the Americas, Europe, Africa and west Asia.

While most people are looking forward to seeing the eclipse, throughout history — many people saw eclipses as omens of doom. Some superstitions and fears still exist. NBC 5 producer Sara Sanchez learned more from historians and eclipse experts.

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Austin, TX

Austin Animal Services Hosts Free Spay/Neuter Clinic

Published

14 hours ago

February 27, 2026

Press Room

Austin Animal Services Hosts Free Spay/Neuter Clinic

Austin Animal Services is hosting a free, high-quality, high-volume spay/neuter for cats and dogs now through March 2 in North Austin.

The five-day clinic, which is being held in partnership with Greater Good Charities, is taking place at 11580 Stonehollow Dr., Suite 160. Registration and drop-off begin on-site each day from 7:30-10 a.m. or until capacity is reached.

In addition to free spay/neuter surgeries, pets receiving surgery will also receive vaccinations, flea and tick prevention, and microchips, ensuring that they return home healthier and better protected.

Spaying and neutering is the most effective tool in preventing unplanned litters and reducing the number of stray and surrendered animals entering local shelters. Managing overpopulation helps individual owners and also strengthens community health by reducing roaming animals, easing shelter overcrowding, and decreasing long-term strain on animal welfare resources.

This is the seventh free clinic the city has hosted since 2024. The previous six clinics provided spay/neuter services to more than 6,000 pets. The upcoming clinic is expected to complete approximately 1,200 surgeries in just five days. It is a significant investment in prevention that helps reduce future shelter intake and supports responsible pet ownership across Austin.

High-volume, high-quality spay/neuter clinics offered at no cost are rare, and many pet owners face procedure costs ranging from $75 to several hundred dollars, along with wait times that can stretch for weeks or months. This clinic removes those barriers by providing same-day services at no charge.

“This clinic is about prevention,” said Austin Animal Services Director Monica Dangler. “When we provide accessible spay and neuter services, we’re helping families care for their pets while also reducing strain on shelters like ours and improving safety across our community.”

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Austin, TX

Why is Austin so warm in February?

Published

1 day ago

February 26, 2026

Press Room

AUSTIN, Texas — February is typically one of our cooler months in Austin, Texas.

In 2021, a series of ice storms and snow storms caused mass chaos and is a winter storm that Austinites will never forget. Now, instead of worrying about scraping ice off of our cars, we’re grabbing the swimsuits.

Austin is in the midst of one of the warmest February’s in the city’s history. This year’s January cold snap lingered around for Feb. 1, but since then, only two days have been slightly below average. Compare that with 20 days above average, with the rest of this month expected to have temps in the mid to upper 80s.

But how does this compare to our warmest February ever? We don’t have to go back too far to find the hottest February on record in 2017. The average high temp was 76.5 degrees with 12 out of the 28 days spent above 80 degrees.

Other years in the top 5 were 1999, 1976, and 1957 with each year having numerous days above 80 degrees. So far, 2026 has ten. Plus, I’m forecasting 2 more 80 degree days. Should we hold onto this weather pattern, this will be in the top five hottest February’s of all-time.

Austin is in the midst of one of the warmest February’s in the city’s history. (Graphic: Michael Crowley)

For some, this heat may be just another day to grab the swimsuit or head outside and work up a sweat, but this has meteorologists sweating for different reasons. We are in a serious drought now.

The latest drought monitor released on Feb. 26, 2026 has 9 of the 13 counties in the CBS Austin viewing area in an “extreme drought,” which is the second worst category of drought conditions.

The latest drought monitor released on Feb. 26, 2026 has 9 of the 13 counties in the CBS Austin viewing area in an “extreme drought,” which is the second worst category of drought conditions. (Graphic: Michael Crowley)

In the past 190 days, two of those days have had rainfall over 1 inch. Our current streak of 123 days in a row with less than 1 inch in rainfall is one of the longest since 2000.

Combine the heat and the rainless days, and you get a flash drought. Opposite of a flash flood, hot temperatures rapidly dry out the soil and drought conditions can worsen quickly. With the dehydrated vegetation, dry air, and above average temperatures, you’re now looking at dangerous fire weather.

We’ve already had several fires reported across Central Texas in just the past week. The Nebo Mountain Fire in Gillespie County and the Cedar Gulch Fire in Burnet County. With this above average heat and below average precipitation, we are especially vulnerable.

But there is some good news.

The start of March looks to be starting off very warm, but our pattern looks to become a bit more active. Our long-term futurecasts look to be favoring more showers and storms possible for the first few weeks of March.

Remember that we are also getting closer to our severe weather season. So while we do need the rain, we must remain safe in case we get locally high rainfall amounts in these thunderstorms and be mindful of tornadoes and damaging winds.

Hopefully we can see an improvement in this drought and heat, but history is made in different ways every year nowadays. Maybe it’ll be for the right reasons this time around.

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