Real Estate Report

Austin housing market hits new high as median home price surpasses $550,000

Austin housing market hits new high with median home price above $550K

Austin Texas State Capitol aerial
Inventory is slim, and prices are high.  dszc/Getty Images

The Austin real estate market continues to heat up as the summer selling season officially gets underway. The Austin Board of Realtor’s latest monthly report, released June 15 and providing market statistics from May 2021, is once again full of all-time highs. 

ABoR reports that last month, the median home price in the city of Austin reached $565,500, a year-over-year increase of 34 percent and an all-time high for any month on record. The figure is a significant increase from April 2021’s record of $550,000, but an even bigger jump from just a few months ago, when, in February, the median price was $491,000. The report also says that May home sales jumped more than 50 percent year-over-year, but ABoR reminds that, due to pandemic-related stay-at-home orders, the market was slower than usual in May 2020.

“Austin’s housing market has become one of the most competitive markets in the U.S.,” Susan Horton, 2021 ABoR president, says in the report. “As new companies relocate to Austin and the city’s popularity draws in new residents, the sheer demand for housing has created a critical inventory shortage, reinforcing that affordability and accessibility to housing across our region is a real concern and should be a top priority for local leaders.”

Affordability concerns extend well past the city limits, with record-breaking prices seen across the five-county metro area.

At the metro level, Austin-Round Rock’s median home price shot up by 42.2 percent year-over-year to an all-time high of $465,000 last month. At the county level, Travis’ median home price rose 41 percent to $550,000, Williamson experienced a 50 percent jump to $435,000, and Hays saw a 42.5 percent jump to $380,000. Bastrop ($321,250) and Caldwell ($239,000) counties remain more affordable, although both experienced year-over-year price increases of more than 25 percent.

Housing inventory is slim across the board. In May, inventory levels dropped 1.5 months year-over-year to 0.5 months at both the city and metro levels. Homes spent only 15 days on the market in Austin and 16 days on the market in the metro — half of the time homes were listed a year ago.

“The market can seem difficult to navigate to the average consumer because it is fast-paced, and transactions are becoming increasingly complex,” Horton says. “This is why it is so important to work with a Realtor who understands the market and can help you find a home that fits your needs and your budget.”