Austin hype is over
Many areas in Austin where tech folks buy homes have seen prices drop 30-40% from pandemic peak. Currently the housing inventory in Austin metro sits at 4 months which is significantly improved from the measly 2 weeks when folks were moving into Austin like crazy. I even saw sub 300k home near Dell campus which was not possible a few months ago. RIP who bought a 800-900k or a significantly high priced home during pandemic time in Austin! https://www.redfin.com/news/housing-migration-trends-q3-2023/
Redfin Real Estate News
It's temporary, let's pump the money into RE
Real Wages (after accounting for inflation) aren't increasing. If housing prices in one area like Austin keeps increasing, people will just pack up and leave to a lower cost location just as they did when moving from Bay area and NYC to Texas. Now, if Texas was Like Miami, Florida or Denver/SLC where there's either sunny beaches or beautiful mountains around you, then yes there is support for price increases but in Texas, there's nothing much to support that as people are learning the hard way!
Not sure I understand the sweeping claims being made here. SF median housing price over 2022 went into the toilet in the same way Austin is correcting. Many areas (even ‘pretty’ mountainous areas like SLC are getting destroyed with only a minor increase the last few weeks, and a 32% mean drop -but due to the lack of tech psycho paths that think tech is the only thing, posts on SLC’s challenges won’t show up here as a comparison because, ummm… there are more things and businesses than just tech) are having challenges with price merely due to interest rate changes alone -price and capital cost tend to be inverse! Moreover, there are both endogenous and exogenous elements of the pandemic that accelerate investment of capital into the area. Most of this capital was planned, and many of these investments have long horizons (same thing happened to Boston in the 1980-1990 which made them a biotech and pharma powerhouse over NY) and it too experienced a drop in real estate in a way that all the single-cell-brained pharma bros were saying was “then end” (sounds very familiar) when rates punished the accelerated investment of capital. The capital will preserve demand for labor and with the shear magnitude of the Texas economy, Austin will continue to have its own swings as those investment fit the resources expectations and demands in the economy. The bias in this post by OP is clear -lack of really thinking how resources cement growth over time vs. changes in capital costs, and comparing dissimilar geographies with very different industry composition.
Shocker. People have realized there’s nothing special about the dirt in ATX and now they’re moving on to cheaper dirt.
Correct. If Austin or Texas overall had beaches like Florida or mountains or national parks like the Rockies and the Smokies areas, then yes, there would be something to support continuous prices increase but all you have is plain land for multiple hundreds of miles around you where houses can be built and cities could be expanded non-stop for ages to come. So there's no lack of land to build and hence no price increases like that seen in last 3-4 years.
Heck we don’t have proper international airport either
Yeah Austin was such a random city to become a tech center It’s a genuine dump, not a lot of great schools, horrible Texas weather (most of the Midwest has better weather even), close to nothing, no major airport, not much to do downtown outside of live music, road infrastructure is bad
Drinking! They got a lot of drinking. You can get drunk on craft beer and whiskey and even hipster shit like mead. Thats about it.
Yeah but the whole Midwest has drinking too at a much cheaper COL
What neighborhood is near dell?
Round Rock duh!
Unfortunately during the pandemic people forgot how to do math. They’re about to get a lesson nation wide if they try and sell. Can also stay for a while and ride it out. Most have very low mortgages comparative to a new purchase
Austin lol why would anyone buy for a million dollar? If it were supposed to be tech hub it wouldve been 20 years back
Funny money was abundant during pandemic due to artificial low interest rates. It led to unrealistic TCs in tech due to astronomical stock rise and that people thought was going to last forever!
We bought for $850 and just sold our home for $1.35
It was obvious. Austin was only worth it when it was cheap. And now with Dobbs, Texas isn't worth it if you want to keep living in the 21st century. https://apnews.com/article/abortion-travel-ban-roads-west-texas-3997304c4156f131ee90bb1363735ba3
It’s not even just about Dobbs. Weather is garbage. It’s HOT most of the year Schools suck unless your kid wants to play football or baseball. Roads suck Crappy property tax Tons of suburban sprawl City amenities and attractions suck One of the few things that had people flocking here was that the mortgage to income ratio was FAN-FREAKING-TASTIC. Company pay scales in Texas have completely ignored the significant increase in property prices. 200k houses are now 4-500k yet you still make the same? Now that mortgages suck here, that was the last thing that made this place good. A lot of transplants from other expensive states accused us native Texans of being gatekeepers. We really meant it when we said if you actually LIKED where you came from (besides home prices), then don’t come to Texas because home prices is all we got and that’s been blown up thanks to COVID
Sorry if I didn't word it right. That's my point, it wasn't worth it even before Dobbs unless it was cheap, and now it's even worse.
Austin is just an average city. You don’t even get the perks of major cities like Dallas or Miami.
Yeah Miami is 1000000x cooler than Austin. World class city even
Meta what do you like about Miami?
Leander buyers are sweating right now
Whole of Leander underwater..
Liberty hill checking in 🤡🤡
Ok now the Bay Area next plz
In your dreams. For all the hate it gets the bay’s physical location alone means it will always command a significant premium.
I think that’s not how it functions, just locations don’t create values in a property