Shocking Housing Trends: Austin Falls Behind San Antonio!
Hey there, fellow Austinites and San Antonians! Grab your coffee and settle in because we’ve got some eye-opening news on the housing front that you won’t want to miss! It seems that our beloved Austin is dragging its feet when it comes to keeping up with the housing boom in our neighboring city, San Antonio.
A Tale of Two Cities
Let’s break it down. According to recent data from housing market analysis firm Zonda, San Antonio has completely outpaced Austin in new home construction. In the third quarter alone, San Antonio saw a whopping 17,751 homes started on an annual basis. In comparison, our dear Austin managed to muster just 16,663 new home starts. That’s a significant 33% surge in home construction for the Alamo City compared to a more modest 11% increase in Austin. Ouch!
Why the Difference?
So, what’s the deal here? Keith Hughes, vice president of sales at Zonda, had a pretty interesting insight. He mentioned that it’s just easier to get things done in San Antonio, and did we mention that homes are more affordable too? That’s right—while many folks are feeling the pinch of rising costs in both cities, San Antonio still has the upper hand in affordability.
The Numbers Speak
The latest data tells a pretty straightforward story. The population figures aren’t too far apart—both cities are close in size. Between 2022 and 2023, Austin grew by 2.1%, welcoming about 50,000 newcomers into our vibrant community. Meanwhile, San Antonio welcomed roughly 37,000 new residents, marking a growth rate of 1.7%. But here’s the kicker: while Austin’s population is growing, we’re struggling to keep up with the demand for housing, and it looks like this imbalance is only going to get worse.
A Tough Reality for Homebuyers
New data from the Business Journal indicates that while all major Texas markets are seeing rising costs, Austin is officially the least affordable city in the Lone Star State! For perspective, the median home price in San Antonio sits at a much more digestible $312,000. On the flip side, Austin’s median home price has leaped to a staggering $425,000. Ouch, again!
Texas Market Shake-Up
Now, if you thought the competition ended at the Texas border, think again! Even outside of Texas, cities like Phoenix and Miami have seen remarkable surges in home construction, with increases of 50% and 44% respectively. Meanwhile, major cities in Texas like Dallas and Houston are barely keeping their heads above water, with home starts at 46,635 and 38,128, respectively, both falling behind Austin and San Antonio in percentage growth.
What’s Austin Doing About It?
Austin city officials are aware of these troubling trends, and they’re rolling up their sleeves to make some changes. They are currently exploring new zoning categories that they hope will help boost the supply of housing. The hope is that these adjustments will enable more homes to be built and ease some of the housing pressure we’re feeling in the capital city.
Looking Ahead
So, as we move forward, let’s keep an eye on that housing market, shall we? Whether you’re a homeowner or looking to buy your first place, these shifts in construction between Austin and San Antonio are certainly going to affect everyone. Will Austin find a way to catch up? Only time will tell!
In the meantime, let’s keep rooting for our city and remain hopeful that change is just around the corner!
