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Home prices in the former pandemic boomtown of Austin, Texas, have slowly started to climb back in March and April, according to Redfin data, but are far from their 2022 peak, as the market is flipping in favor of buyers and the city experiences troubles with developers abandoning projects.
In April, the latest data available on Redfin, the median sale price of a home was $567,000, up 0.4 percent compared to a year earlier but down 16 percent compared to the peak of $667,000 reached in May 2022. Austin, once one of the hottest markets in the U.S.—and one of the most overvalued—experienced the biggest drop of any metropolitan area in the country following the pandemic.
In May 2024, according to data compiled by ResiClub using the Zillow Home Value Index, home prices in Austin were down 18.7 percent compared to the May 2022 peak.
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The only other cities that experienced price drops beyond the 10 percent mark from their pandemic peak were New Orleans, Louisiana (-13.7 percent); Lake Charles, Louisiana (-11.7 percent); and Boise, Idaho (-10.4 percent).
The U.S. housing market experienced a modest price correction between late summer 2022 and spring 2023, driven by the increasing unaffordability of buying properties in a higher mortgage rates environment.
In Austin, which saw a huge influx of residents during the pandemic driving up prices, the correction was a much more dramatic phenomenon. Prices slid down as coastal and remote workers started leaving the city after the end of the pandemic and new construction projects got on the way, increasing Austin’s inventory.
While a historic lack of supply at the national level has contributed to keeping prices from plunging and is now leading their slow comeback in Austin too, there’s no doubt that the city is not the same place it was during the pandemic years.
Software giant Oracle Corp. announced a month ago that it would be moving out of Austin and creating its “world headquarters” in the city’s archrival, Nashville, Tennessee. The company had arrived in the Texas capital only in 2020.
In recent months, Austin has seen developers abandon several construction projects, as reported by Austin realtor Jeremy Knight in a series of videos on YouTube. In a previous comment to Newsweek, Knight explained that many of these projects started in 2020-2021 as the market was beginning to skyrocket.
“There was a lot of demand with more people moving to Austin. Unfortunately, the city of Austin has a lot of red tape and logistics to get through. Many of these projects take years to get greenlit,” he said.
“Now add the delays with workforce during the pandemic, the backlog, and developers rushing to buy in Austin, and then a turn in the market of 21 percent peak to trough. The valuations many of these developers put on these projects no longer make sense. Now add the fact that interest rates have doubled and nearly tripled since the projects started. Many of these small developers are facing headwinds.”
In a recent video, Knight said that over 57 percent of the inventory on the market is now vacant.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
On a warm March night, alternative-indie rock band, Rainbow Kitten Surprise, thrilled eager fans with their return to Austin, TX.
Rainbow Kitten Surprise is known for their eclectic influences and unique sound. They are made up of musicians Ela Melo (vocals), Darrick “Bozzy” Keller (guitar/vocals), Ethan Goodpaster (guitar), and Jess Haney (drums). They have been making music since 2013, and their most recent release was a single titled “Sixteen.” In total, they have five studio albums and are hopefully working on another.
Opening for Rainbow Kitten Surprise is Southern California-based band Common People. The band consists of members Nicky Winegardner (vocals/guitar), Konrad Ulich (vocals/bass), Cormac Cadden (drums), Asher Thomson (guitar), and Sam Belzer (guitar). Their garage-rock sound caught the eyes of Red Light Management, and in addition to Rainbow Kitten Surprise, they have opened for big-name artist Cage The Elephant. Their debut single “Thank You” gained traction last year, in 2025. Since then, they have released a few more singles, but fans are still eagerly waiting for an EP or debut album.
Common People came onto the stage with great energy. They performed their song “Ready or Not,” along with a few other originals. Mid-set, they took a second to thank and praise Rainbow Kitten Surprise for having them join them on tour. Sadly, Austin will be their last stop on Rainbow Kitten Surprise’s tour. Following, they performed an awesome cover of The Pixies’ “Where Is My Mind?” At around the 40-minute mark of their set, they closed with their newest single, “Dear Worry.”
Rainbow Kitten Surprise opened their set with “Hell Nah” from their most recent album, bones (2025), and “Our Song,” a single from 2020. Many fans at the barricade held signs that applauded the band. They also waved LGBTQ+ and Transgender Pride flags. Ela announced to fans that this would be the last stop on their 2026 bones Tour before they took a well-deserved break. At the end of May, Rainbow Kitten Surprise will pick back up their tour in Europe and before returning to the US for a few more shows. Their set continued, and they played songs such as the newer 2025 single “Espionage” and the throwback “All’s Well That Ends.”
Before beginning their latest single, “Sixteen,” Ela introduced it as the most emo song they’ve ever made. Towards the end of their show, they performed a quick three-song acoustic run of “Texas Hold’em,” “Bare Bones,” and “First Class.” As the night came to an end, Rainbow Kitten Surprise shut it down with an encore of the closing track from bones, “Tropics” and “It’s Called: Freefall,” their 2018 top-hit from the album How To: Friend, Love, Freefall.
Fans can expect their favorite band to come to Austin sometime soon, as it seems Rainbow Kitten Surprise tours here pretty regularly.
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Holly Beth Potter and her husband Matt, 35, an entrepreneur, admired the historic Rosewood neighborhood of Austin, Texas, for years until they finally purchased a 1930s-era Victorian-style bungalow that was owned by a 104-year-old woman.
“She lived in the house for more than 70 years, and her ‘kids’—who are in their 80s—sold it to us instead of a developer because we told them we loved the character of the house and wanted to restore it,” said Holly Beth Potter, 33, a former EMT who’s now an interior designer. When the Potters purchased the house in 2019, they hoped to have children and now they have three—ages four, three and seven months.
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“We knew the house needed work, especially since not all of the plumbing was functional,” Potter said. Once they brought in Side Angle Side Architects, however, it was clear they faced a full-blown renovation. “After the project started, they discovered rotting wood, broken windows and a dysfunctional roof structure, plus when we pulled off the skirting under the house it revealed that we needed a new foundation and new framing.”
The Potters pulled back from that renovation to build an accessory dwelling unit (ADU) on the property, a two-bedroom, two-bathroom house they lived in while the main house was rebuilt. Now the ADU serves as a guest house for friends and family.
“They basically had to take apart the main house piece by piece and put it back together, but they saved as much as they could of the wood and trim and reused it,” Potter said. “It probably would have been easier to tear it down, but we wanted to preserve the character as much as we could. They reconfigured the original house on the same footprint, moving the kitchen between the living room and dining room on one side of the hallway, with the primary bedroom and a second bedroom on the other side.”
The dining room has the original shiplap from the old house and original wood pocket doors. The new kitchen and living room are open to each other, with a hemlock wood ceiling overhead. The architects took some space from the central hallway to create a mudroom, closet and pantry.
An addition, which doubled the living space from 1,800 square feet to about 3,600 square feet, includes an office, a family room with a loft and the children’s bedrooms.
“Our goal with the addition was to deliberately design it in a different architectural style,” Potter said. “Sometimes people ask me if this is one house or two.”
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The Potters declined to comment on how much the renovation and addition cost. Construction took about 21 months.
The collaboration between Potter and Side Angle Side Architects on the house was so successful that her company, HB Studio, is now part of Side Angle Side.
Potter and the Side Angle Side team offered more insight into the renovation process:
I would describe the aesthetic as… “timeless,” Potter said. “I chose furniture that felt contemporary, while also leaning into tones and patterns that were warm and romantic to create an overall feeling of timelessness.”
My advice to others… “is to let the old house tell you what to do,” said Annie-Laurie Grabiel, co-founder of Side Angle Side Architects. “In this case, it was important to let the original home be the star of the show. We figured out that the best way to add onto the house without compromising its integrity was to essentially build a separate building next to it and connect the two as minimally as we could. The new addition almost stands alone and connects to the old house with a lower roof that just tucks under the existing roof eave.”
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My favorite post-renovation feature is… “the way we embraced indoor-outdoor living,” Potter said. “We preserved this big tree in the backyard and built the courtyard and pool area around it. We can open all the doors and windows around it, so you feel like you’re outside even when you’re indoors.”
The biggest challenge… “was working with the existing house,” said Arthur Furman, a co-founder of Side Angle Side Architects. “The clients loved the character of the old home, and we were determined to keep it as a central aspect of the new design. However, the wood framing was compromised from water damage and rot. In the end the house had to be reframed, but we matched the original footprint and proportions. We salvaged and reinstalled as much of the interior woodwork as we could, including the wood floors, interior doors, window trim and base boards.”
The most dramatic change was… “the new kitchen,” Grabiel said. “The original kitchen was small and dark and didn’t have a strong connection to the outdoors. We relocated [it] to the heart of the interior and opened it up with access and views to the back porch and pool deck.”
The biggest surprise was… “that some of the best elements weren’t part of our pre-construction plans,” Furman said. “When the roof was being reframed, we looked up at the treetops through the rafters and we thought how nice it would be to open up a skylight and experience the natural light right when you enter the home. Also, we had always planned the kids’ loft area, but then one day the clients had the idea to add the netting to extend the loft space and create more connectivity between above and below.”
Favorite materials we discovered during the process… “include the natural materials for the walls, floors and bathrooms,” Potter said. “In the living room we installed a hemlock wood ceiling and a plaster fireplace wall, and we used quartzite counters in the kitchen and bathrooms.”
AUSTIN, Texas — Rodeo Austin and the Travis County Sheriff’s Office cleared up confusion after a scare in the rodeo’s carnival area Tuesday night.
Deputies and multiple law enforcement agencies working off-duty at the event received reports of shots fired around 9:20 p.m. after a large crowd began running and dispersing from the carnival area. Investigators found no guns, no evidence of gunshots and no injuries, the sheriff’s office said.
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The incident was later determined to have started as a physical altercation between minors.
In a statement, Rodeo Austin said on-site law enforcement responded quickly to defuse the situation:
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“On Tuesday night, during the $2 Tuesday promotion, a disturbance occurred in the carnival area, which caused confusion for attendees. Rodeo Austin’s on-site law enforcement responded quickly to help defuse the situation and ensure all guests were safe. There is no evidence of any gun shots fired at the event. We will continue to work diligently with law enforcement and our full safety team to ensure Rodeo Austin is a safe environment for all attendees,” a spokesperson said.
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