Austin home market seen as hottest of 2021

Tech-friendly Texas city saw prices rise by nearly a quarter last year

National Weekend Edition /
Jan.January 24, 2021 09:00 AM
(iStock)
(iStock)

It could be a transformative year for Austin’s residential market.

A recent survey from Zillow and data from Redfin suggest that home prices could increase beyond the national average and outpace prices in top-tier metros, according to Inman.

Zillow’s quarterly survey on home price expectations found 84 percent of industry experts, economists, and investors believed that price increases in Austin would exceed the national average.

That consensus was the strongest about any city, either positive or negative.

Los Angeles, San Francisco and New York were on the other end of the spectrum. A majority of respondents believed home prices would rise slower in those three expensive cities than the national average.

Besides pandemic-induced slowdowns, that could be because prices in those markets are already among the highest in the nation, so there’s less room to grow. Prices have still hit record highs in L.A. this year, for example.

Austin topped the same Zillow survey last year and that consensus proved correct: The median list price in the metro area in December was up 23.6 percent year-over-year, more than in any of the 50 largest U.S. markets.

Demand from out-of-town shoppers is a factor. Around 43 percent of Redfin home searches in Austin in the fourth quarter were from out-of-towners.

A third of those queries came from San Francisco alone. Some of the Bay Area’s biggest businesspeople are moving to Austin and employees seem ready to follow.

High-tech industries have grown by 25 percent over the past five years in Austin, where about 16% of all jobs are in that sector. Oracle recently announced it was moving its headquarters there. PayPal, eBay, Microsoft, Facebook, Cirrus Logic, National Instruments, Hewlett Packard, Emerson, Dell, Samsung, ChemWest, InnoTech, Data Foundry and Orion Novotus already have offices in and around the city.

Home shoppers have expanded their searches overall — a record 30 percent of Redfin.com users were searching for homes in other metro areas, a 16 percent year-over-year increase. [Inman] — Dennis Lynch 


Related Articles

arrow_forward_ios
LA County explores turning struggling commercial properties into housing. (Getty)
LA County explores turning struggling commercial properties into housing
LA County explores turning struggling commercial properties into housing
(iStock)
Fry’s Electronics, go-to for high tech pros, closes forever
Fry’s Electronics, go-to for high tech pros, closes forever
(iStock)
Southern California housing rush was unabated in January
Southern California housing rush was unabated in January
California Ripped Fitness (Google Maps)
Maxed out: Gym closes after racking up $1M in Covid fines
Maxed out: Gym closes after racking up $1M in Covid fines
President Joe Biden and Gov. Gavin Newsom (Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Biden’s executive order fully reimburses LA for Project Roomkey
Biden’s executive order fully reimburses LA for Project Roomkey
Cronies Sports Grill in Agoura Hills and Tinhorn Flats Saloon & Grill in Burbank (Google Maps, iStock)
LA County sues two restaurants for outdoor dining
LA County sues two restaurants for outdoor dining
Assembly Speaker Anthony Rendon, Gov. Gavin Newsom and Senate President Pro Tem Toni Atkins (Getty)
State extends eviction moratorium, creates $2.6B rent subsidy program
State extends eviction moratorium, creates $2.6B rent subsidy program
(iStock)
Outdoor dining to return in LA County this week
Outdoor dining to return in LA County this week
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...