Austin-Area Home Prices Continue to Soar – Affordability Concerns Remain
As shown in a recent report released by the Austin Board of Realtors, Austin-area home prices continue to rise to historic levels.
Setting an all-time high for the month of August, the median home price for single-family homes increased 8 percent year-over-year, to $265,000.
As pointed out in that same ABoR report, median home prices have increased by more than 30 percent from August 2010 to August 2015, a $65,000 difference over the last five years.
This continual rise in home prices has lead to an increasing affordability issue for residents throughout the Austin area. By using data from the U.S. Bureau of Labor Statistics, which states approximately 65 percent of Austin-area professionals made less than $50,000 in 2014, we can reasonably conclude that the median home price is now roughly 25-30% over the affordability threshold for Austin-area residents.
Barb Cooper, President of Austin Board of Realtors addressed this concern, stating “We will continue working with our city’s leaders to find a solution to the complex affordability issues, with the end goal of providing affordable and diverse housing stock for our growing population that aligns with the actual incomes of Central Texas residents.”
On the bright side, Austin’s strong economy continues to support the growing home prices, evidenced by the 8 percent increase in total homes sold in August.