Austin, TX
Austin’s housing market is in trouble
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.”
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.”
Austin, TX
Abbott unveils monument dedicated to Texas Revolutionary War soldiers
AUSTIN (KXAN) — Governor Greg Abbott and the Texas Society Sons of the American Revolution unveiled a new monument at the Texas State Cemetery on Saturday, dedicated to Texas Revolutionary War soldiers.
“We must educate every generation about why it is that America grew from a tenuous 13 colonies into the most powerful country in the history of the world,” said Governor Abbott. “This monument here is an enduring testament to the heroes who fought for the freedom that is unique to America.”
The monument was dedicated to 69 soldiers who fought in the American Revolutionary War and later settled in Texas, according to a press release.
Among those that were honored, Abbott recognized:
- José Santiago Seguín, grandfather of Texas Revolutionary hero Juan Seguín.
- Peter Sides, who fought in the 2nd Battalion of the North Carolina Regiment of the Colonial Army, and was later killed in the 1813 Battle of Medina, fighting for Mexican independence against Spain.
- Antonio Gil Y’Barbo, the founder of Nacogdoches.
- William Sparks, who fought as a mounted rifleman in the American Revolution and later settled in Texas. He had two sons and two grandsons who fought in the Texas Revolution.
“This year marks the 250th anniversary of the American Revolution, which not only gave freedom to the British colonies of North America, but inspired movements for freedom and liberty all over the world,” said TSSAR President Mel Oller. “Texans played a role in the war too, and it’s important to recognize them, and the sacrifices they made for our freedom.”
At the monument unveiling, Abbott was also inducted into the Sons of the American Revolution and received its Silver Good Citizenship Medal.
Austin, TX
Trinket trade boxes on the rise across Austin
AUSTIN, Texas — Inside a green wooden box mounted to a steel fence, a treasure trove of trinkets awaits. Just a few miles north is another goodie box, this time covered in leopard print and inside a craft studio. Farther east, a simple white trinket box sits mounted on a wooden pole, decorated with stars and a crow saying, “Thanks for visiting!”
These boxes, filled to the brim with stickers, keychains, jewelry, collectibles and more, are known as trinket trade boxes. Austin has seen a sudden surge in these boxes over the last few months, and despite their varying locations, one sentiment ties them all together: trinket trading is a fun way to bring a bit of joy to the community.
“Little things that bring people joy is so important right now, which I think a lot of us can agree with, and I’ve seen all sorts of people use the box so far,” said Anna Arocha, whose trinket box is in The Triangle neighborhood downtown. “Little kids and all the way up to people in their 50s and 60s, I’ve seen stop by.”
Trinket trading operates on a simple system of take something, leave something. People can swap a toy car for a lanyard, a bracelet for a Sonny Angel, or a Pokémon card for a rubber duck.
“There was somebody who was just walking by with their kid in the stroller, and there was a finger puppet inside of the box, and I saw her swap something out and walk away with the little finger puppet,” Arocha said. “And it was just such a cute moment to see a mom and a kid enjoy something like that.”
Arocha put her crafting skills to work and made her green wooden box in just one day using craft wood and a wine crate last month. Amy Elms opted for a small, white junction box to ensure it could withstand harsh Texas weather. Ani’s Day & Night on East Riverside, which has a large outdoor space for picnic tables and food trucks, gave Elms permission to place her trinket box on their property in January.
Ally Chavez used her own property, Create! Studio ATX on West Anderson Lane, for her leopard-print box that opened in March.
“There wasn’t a ton up here in the north area, so we just kind of wanted to put it together and put it up for the studio just as a way to connect with the community in a way that no one has to spend money,” Chavez said.
Since their debuts, all three trinket boxes have garnered thousands of interactions on social media. When Arocha posted about the opening of her box in March, she racked up 100,000 views on TikTok. But with the excited comments came a bit of negative attention, and her cameras caught a thief trying to take all the trinkets. Arocha now locks the box at night.
“If somebody wants to do that, so be it,” Arocha said. “We can start over, and if the joy that it brings outweighs that every time, I think it’s worth doing.”
Arocha, Elms and Chavez’s boxes are now registered on a website called Worldwide Sidewalk Joy, alongside all the others in Austin and across the globe, as trinket trading grows to become a kind of new, modern geocaching.
“Honestly, it’s been I think even better than I expected so far,” Elms said. “I’ve had people… visiting Austin from out of town, and they’re making it a stop during their visit. I’ve also had multiple people reach out to me to ask how they can start their own trinket trade box, too, which I really love.”
Austin, TX
Forbes designates University of Texas as a ‘new’ Ivy school for third year in a row
AUSTIN (KXAN) — Forbes on Friday released its annual list of ‘New Ivies,’ and the University of Texas at Austin made it. This is not UT’s first time on the list; it was included in 2024 and 2025.
It’s important to note the Forbes designation does not make UT an Ivy League School. Schools currently designated as Ivy League are Brown University, Columbia University, Cornell University, Dartmouth College, Harvard University, Princeton University, the University of Pennsylvania, and Yale University.
Forbes argued its list was created because a growing number of employers have said they are less likely to hire an Ivy League grad today compared to five years ago. The list is curated by surveying over 100 C-Suite and hiring executives, as well as using data from the 2024 National Center for Education Statistics to gauge if a school fulfilled the criteria to be on the list.
One respondent said instead of prestige, employers are looking for graduates who have “complex emotional intelligence, radical adaptability and visionary creativity to orchestrate AI tools rather than compete with them.”
Forbes said colleges had to meet three criteria to be considered, which included:
- Size: Private schools must enroll at least 3,000 students, and public colleges must have at least 4,000 students enrolled.
- Selectivity: All but one private college had an admission rate of less than 15%; public college admission rates were 50% or less.
- Testing Requirements: At least half the entrants must have submitted either the SAT or the ACT scores
Forbes argued testing requirements indicated academic rigor, as a result. Schools such as the University of California and California State schools were not considered.
When it came to UT meeting the requirements for the list, UT had an undergrad enrollment of 44,663 students with a 27% acceptance rate. When it came to test scores, it had a median SAT score of 1390 and a median ACT score of 31.
For a full list of the public and private schools included in the Forbes 2026 New Ivies list, click here.
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