Austin Real Estate Slump: Prices and Rents Fall as New Supply Grows

Austin’s housing market has cooled dramatically since its 2022 peak: typical home prices are down about 25%, July prices were roughly 12% lower than a year ago, and the rental market is softer as a surge of new homes hits the market. A Realtor.com analysis shows about 79% of homes bought in 2022 are worth less than their sale price, while buyers face higher mortgage rates and builders’ incentives that blur resale competitiveness. Yet analysts say Austin’s fundamentals—millennials, high-income workers, and a steady employer base—sup port a longer-term rebound, aided by rate buydowns and measured development, though a quick recovery isn’t expected.