Austin may land right in the middle of the most buyer- and seller-friendly markets in America, but home prices are anything but stagnate. Local home prices have increased tremendously in recent years, outpacing all but one Texas city, according to a new report.
Real estate news site Point2Homes reports that from December 2013 to December 2018, Austin's median home price increased from $226,000 to $301,391, a 33 percent jump — and an additional cost of $75,391.
Statewide, the Austin price increase is second only to Fort Worth, which was one of 18 North American cities with a price jump of over 50 percent, according to the report. The median home price in Cowtown grew from $148,000 in December 2013 to $225,000 in December 2018, a 52 percent increase that equates to $77,000. The report analyzed home prices in North America's 83 largest housing markets.
By comparison, other Texas metros saw relatively modest growth. San Antonio saw a 32 percent increase ($171,400 to $226,200), while Houston home prices jumped 27 percent, from $188,500 to $240,000. Dallas had the second-lowest home price growth among the Texas cities studied, with a median home price increase of 24 percent ($229,900 to $285,000). At 12 percent, El Paso had the lowest median home price growth in the state (from $137,650 to $154,000).
"Compared to just five years ago, 40 cities in the U.S., 31 in Mexico, and 10 in Canada have seen significant home price hikes, putting considerable strain on the average homebuyer. With more and more people opting for a connected, urban lifestyle, and with the younger generation’s desire to reduce commute time, demand for urban housing is skyrocketing," the report says.
Detroit topped the North America list with a surprising 97 percent increase in home price but a net increase of only $30,143. San Francisco, however, saw the highest net increase: a staggering $550,000 price increase in just five years.