Uncommon Knowledge
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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.
Brandon Bell/Getty Images
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.
Federal investigators are looking into whether a shooting in Austin, Texas, on Sunday—that involved a gunman opening fire at a downtown beer garden, killing two and wounding 14—constitutes a potential act of terrorism.
Alex Doran, the acting special agent in charge of the FBI’s San Antonio Field Office, said in a press conference that while it’s still too early to determine a motive, authorities found “indicators” on the alleged gunman and in his vehicle that “indicate potential nexus to terrorism.”
The suspected gunman, who was reportedly wearing clothes that bore “Property of Allah” and an Iranian flag design, was shot dead in a standoff with law enforcement.
The shooting happened just a day after the U.S. and Israel launched a major military campaign against Iran. White House Press Secretary Karoline Leavitt said President Donald Trump was briefed on the shooting.
Texas Gov. Greg Abbott, a Republican who expressed support for the latest Iran strike, said in a statement: “To anyone who thinks about using the current conflict in the Middle East to threaten Texans or our critical infrastructure, understand this clearly: Texas will respond with decisive and overwhelming force to protect our state.” A day before the incident, Abbott directed the Texas Military Department to activate service members to “work alongside state and federal partners to safeguard our communities and critical infrastructure,” and he directed the state’s Department of Public Safety and the Texas National Guard, to “intensify patrols and surveillance.”
Here’s what to know.
Shortly before 2 a.m. Sunday, the suspect circled past Buford’s Backyard Beer Garden on Sixth Street several times in a “large SUV,” before stopping and opening fire with a pistol out of the vehicle window at people on the patio and gathered outside the bar, Austin Police Chief Lisa Davis said in a press briefing on Sunday.
The suspect parked the vehicle, stepped out with an assault rifle, and started firing at people on the street, according to Davis. Officers responding to the incident shot and killed the gunman.
The shooting took place along Sixth Street, a popular nightlife and entertainment district located a few miles from the University of Texas at Austin. Three people, including the suspect, were killed, and 14 were injured in the attack. All of those injured were transported to local hospitals, with three in critical condition, Austin EMS Chief Robert Luckritz said at the Sunday briefing. The names of the victims were released as of Sunday night.
Jim Davis, president of UT Austin, confirmed in a statement that members of the university community were among those affected by the shooting, although they have not been publicly identified. “Our prayers are with the victims and all those impacted, including members of our Longhorn family, and my heart goes out to their families, friends, classmates, professors, and loved ones,” Davis said. “As Longhorns, we feel this pain together.”
The Austin Police Department identified the suspect as Ndiaga Diagne, a 53-year-old man. Diagne, who was born in Senegal, officials told the Associated Press, first came to the U.S. in 2000 on a B-2 tourist visa, according to a Department of Homeland Security statement to the AP. He married a U.S. citizen in 2006 and became a lawful permanent resident, before becoming a naturalized U.S. citizen in 2013.
A law enforcement official briefed on the case told CNN that Diagne was wearing a shirt with an Iranian flag design and a hoodie emblazoned with “Property of Allah.” The AP also reported the words and symbols on his clothes, also citing a law enforcement official.
The Austin American-Statesman reported that investigators searched a house in Pflugerville, north of Austin, linked to Diagne’s possible relative. Local television station KXAN reported that Diagne had been issued a driver’s license with an address in Pflugerville in 2017.
Neighbors speaking to the New York Times said Diagne had maintained a low profile. “They kept very much to themselves,” Chris Finch, who lived next to the searched home, said. “They didn’t really say hi or anything.”
Another neighbor and the president of the neighborhood’s homeowners association, Eddie Garcia, said he was never aware of any previous issues. “We’re all neighbors and respect each other but we are also private and keep to ourselves,” he told the Statesman.
Mayor Kirk Watson called the shooting “an extremely difficult, traumatic moment” for the city.
Senator Ted Cruz (R, Texas) said the shooting was a “senseless act of violence” and that he and his team are coordinating with local, state, and federal authorities over the incident.
Other Texas politicians have been united in condemning the shooting and extending condolences to victims and their loved ones, but they have been divided along partisan lines as to what’s to blame for the attack.
In a statement posted on X, eight Democrats in the Texas state legislature, including U.S. Senate candidate James Talarico, said, “Gun violence continues to steal the lives of far too many Texans. Our hearts are with the victims of today’s shooting and their families. We will never stop fighting for them.”
Rep. Greg Casar (D, Texas) posted, “We must end America’s gun violence epidemic. Americans should be able to have fun at a bar without it turning into an unspeakable nightmare like this one— and I will redouble my efforts in Congress to prevent the next tragedy like this.”
“Gun violence is preventable. This devastating loss of life was preventable,” Rep. Lloyd Doggett (D, Texas) posted on X. “Until Republicans find the courage to say no to the NRA, our country will be plagued with more tragedies.”
Republicans, on the other hand, have blamed the attack on Islamic extremism and mass migration. Rep. Chip Roy (R, Texas) said, in response to Doggett, that “Muslim immigrant violence – naturalized or not – is preventable. Until Democrats (& Republicans) find the courage to say no to the mass migration of Islamists, our country will be plagued with more tragedies…”
In another post, Roy said the shooting in Austin was “carried out by a suspected Islamist who came on a tourist VISA, and OVERSTAYED for years,” adding that the “tragedy was preventable” and that “failed policies have real consequences.”
“Allowing unvetted immigrants who are hostile to America, who are loyal to our adversaries like Iran, must end,” Abbott, the Republican governor, said in response to a call by Talarico for stricter gun regulations. “The way to end it is to end the current open immigration policies.” (Talarico responded, “Dangerous people should not be allowed into the country. Dangerous people should not be allowed to get guns.”)
The Texas chapter of the Muslim rights advocacy group Council on American-Islamic Relations condemned the shooting in a statement, but it also rejected using the incident to attack the larger Muslim community.
“While a single person carried out this heinous attack last night, hundreds of thousands of Texas Muslims finished their night prayers and headed to their homes while calling on God for global peace and justice,” the statement said. “We encourage elected officials, law enforcement, faith leaders, and community members to come together to support the families of the victims and reaffirm our shared commitment to public safety.”
FOX News obtained this image that purportedly shows the gunman responsible for a deadly mass shooting in Austin, Texas, on March 1, 2026. (FOX News)
AUSTIN, Texas – Investigators are probing the deadly shooting on Austin’s Sixth Street, that left three dead and 14 injured.
Officials are gathering new evidence that could point to extremist motives, as additional details surfaced Sunday about the gunman’s background and clothing during the incident.
What we know:
Three people, including the gunman, were killed, and 14 others were wounded early Sunday outside Buford’s beer garden in Downtown Austin.
Police said officers were responding to reports of gunfire around 1:40 a.m., before confronting the suspect and fatally shooting him after he opened fire.
Authorities have not publicly identified the suspect, but an FBI spokesman said on Sunday that investigators are reviewing materials recovered from the suspect and his vehicle that indicate a “potential nexus to terrorism,” but cautioned that it is too early to determine a motive or whether the attack was directed or inspired by a specific group.
Dig deeper:
FOX News reported Sunday that it had obtained a photo of the suspect taken before the shooting. The image showed a man holding a firearm and wearing a gray sweatshirt bearing the words “Property of Allah.”
Sources also told the network the suspect was wearing an undershirt that appeared to display an Iranian flag or Iranian imagery.
The Source: Information in this article was provided by FOX News and press conferences held by Austin police and the FBI.
Austin Police are investigating a mass shooting at Buford’s on West 6th Street that’s left multiple people injured.
This happened around 2 A.M. as the bar was closing.
The number of people injured is not known.
Austin Police are also investigating an Officer Involved Shooting in the 600 block of Rio Grande Street.
They say the suspect is deceased.
APD says the call originated as a shoot/stab hotshot incident with multiple people injured.
Austin Travis County EMS and the Austin Fire Department are also on the scene.
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This is a developing story and will be updated as more information is released.
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