Is Austin’s housing market overvalued? At least by one measure, the answer is yes

Many of the nation’s housing markets are out of balance, new data shows

by: Cody Baird, Austin Business Journal

Posted: Jun 6, 2024 / 07:54 AM CDT

Updated: Jun 6, 2024 / 07:54 AM CDT

AUSTIN (Austin Business Journal) — Home prices in Austin are eclipsing the median buying power of local residents.

That’s according to data from First American Financial Corp., which found the housing markets in at least half of the nation’s major metro areas are overvalued compared to local buying power.

Home prices have soared nationally over the past decade — especially during the pandemic — and that’s driving a significant affordability crisis in many regions. High interest rates and a sustained lack of inventory aren’t helping matters.

Local buying power in Austin is $434,663, according to the data. Unfortunately for those in the market for a new home, the median sale price of a house in Austin was clocked at $466,867. That’s about a $32,000, or 7%, difference.

Read this full story at the Austin Business Journal.