On the rise

Downtown Austin’s population popped 79 percent from 2010 to 2020, report says

The population of downtown Austin has surged from 4,222 in 1990 and 7,635 in 2010 to 13,648 in 2020.

RoschetzkyIstockPhoto/Getty Images

A new report demonstrates that downtown Austin isn’t just for workers, tourists, partiers, and diners anymore.

The population of downtown Austin has surged from 4,222 in 1990 and 7,635 in 2010 to 13,648 in 2020, according to the report, released by the Downtown Austin Alliance. That translates into a 223 percent population spike between 1990 and 2020 and a 79 percent jump from 2010 to 2020.

Today, the population of downtown Austin roughly equates to the population of Manor, a Travis County suburb.

To accommodate the escalating population of downtown Austin, real estate developers have bulked up the housing supply there.

In 1990, just 948 housing units were located downtown, according to the report. That number grew to 5,670 in 2010 and 9,447 in 2020. In other words, the downtown housing supply spiked a whopping 897 percent between 1990 and 2020 and a far more modest 67 percent from 2010 to 2020.

“As one of the hottest Austin residential markets, downtown continues to evolve as it serves Austin’s diverse population,” the report says.

The downtown residential market is poised to keep evolving as more office buildings rise in downtown Austin. According to the report, 11 office projects are under construction downtown, and another 11 have been proposed or are in the planning stages. About 106,500 people currently work downtown.

Overall, the report illustrates downtown’s contribution to Austin’s emergence as an “18-hour city.” Austin-based commercial real estate investment platform Crowdstreet explains that 18-hour cities “are defined as second-tier cities with above-average urban population growth that offer a lower cost of living and lower cost of doing business relative to first-tier or ‘24-hour’ cities.”

“Austin has shown over the last year that downtown is truly built for living, working, and playing,” the report says. “With small businesses opening their doors for visitors in the morning, workers bustling through the streets in the afternoon, and live music floating down the streets in the evening, downtown Austin is a space with vibrancy flowing through it during all hours of the day.”

reports

local real estate report

Homebuyers can afford to be picky as Austin housing inventory rises

Photo by Avinash Kumar on Unsplash

Housing economist Clare Losey said the most significant factor affecting home sales in Austin is high mortgage rates.

The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing economist Clare Losey, Ph.D., October's mortgage rates stood at 6.4 percent and are showing no signs of a significant drop in the near future. Even heading into 2025, Losey says potential homebuyers who are biding their time in the hopes of seeing rates plummet "may be in for a long wait."

"In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach," Losey said. "Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations."

As for the overall health of the Central Texas housing market, 2024 Unlock MLS and ABoR president Kent Redding labeled recent news reports that called Austin "ground zero" for a downturn as an "extreme over-exaggeration."

"Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic," Redding said. "For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes."

Central Texas housing trends in October 2024

In Travis County, 979 homes were sold last month — a slight 2.5 percent increase from last year. Median prices remained flat year-over-year at $510,000. Active home listings continued growing to 5,702 homes, which is 9.4 percent more year-over-year.

In Williamson County, 807 homes were sold in October, with median prices steadily dropping to $420,000. There were 1,028 new home listings on the market, showing a 4.5 percent increase from October 2023, bringing the total number of active home listings to 3,369.

Residential home sales dropped by nearly eight percent in Hays County in October, totaling 315 sales. Median prices also fell 5.5 percent year-over-year to $359,000. Active listings rose 6.6 percent year-over-year to 1,740 homes with the addition of 534 new listings on the market.

Meanwhile, 114 homes were sold in Bastrop County last month, which is 4.4 percent more than this time last year. Median prices dropped by a single percentage point year-over-year to $355,000. There were 654 active listings on the market in October, and 152 new home listings, representing a 1.3 percent slip in new inventory when compared to last year.

Only 33 homes were sold in Caldwell County in October to reflect a near 14 percent decline year-over-year from October 2023. Median prices fell to $262,990, which was a 13.5 percent decrease from last year. There were 136 active homes on the market last month, and 40 new homes added on the market.

austin travis county housing market real estate report real estate