Austin is now the most expensive US city outside California

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  1. JadeB

    JadeB la force de l'avenir

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    Austin expected to become least-affordable metro for homebuyers outside of California
    A Zillow study predicts that Austin will fall down in affordability ranks by December.

    AUSTIN, Texas — Austin is now the seventh least-affordable city in the US, according to a recent Zillow affordability analysis.

    Austin fell six spots down from last year’s Zillow affordability ranking. The Central Texas city is set to become the least-affordable city outside California by end of year.

    By December, Austin is expected to pass Seattle, Miami and even New York. Home prices in Austin are still lower than coastal cities, but Zillow’s report claimed Austin’s affordability is hurt by lower wages that cannot keep up with the rising mortgage and rent costs.

    In the Austin and Round Rock area, Zillow found that rent ate up 28.6% of a renter’s income in June 2021. That share is set to rise to 29.6% of monthly income by December.

    In a press release, Zillow spokesperson Mark Stayton said the cost of rental housing will become a “burden” for the average U.S. renter this year, “surpassing the 30% threshold of income spent on rent each month and putting renters at risk of not having enough money left over for other expenses.”

    Mortgage payments took up 25.3% of homeowners’ incomes in June. Just like rent costs, mortgages will rise as well. Zillow predicted monthly mortgage costs will become a “housing burden” and will equal 30.1% of homeowners’ monthly income by December.

    If mortgage rates stay the same, Austin-area mortgage rates will still rise to $3,021 a month, according to Zillow.

    “But even if mortgage rates stay at current low levels, continued demand for homes will soon outweigh this advantage,” said Stayton. “Pushing mortgage payments as a share of income to the highest rate seen since at least 2014, when our data series begins. The more mortgage rates rise, the less affordable home loans will become in the coming months.”

    If those rates rise in Austin by at least 3.5%, Zillow estimates monthly mortgage payments on the average new home will rise to $3,125.

    “Strong demand and rising prices for homes are overwhelming the ability of low mortgage rates to keep monthly payments down,” said Nicole Bachaud, Zillow economic data analyst. “As prices continue to outpace income gains, affordability constraints will start to slow home price growth.”

    An influx of wealthier renters and homeowners over the past year is also driving up housing prices. As Californians with historically higher salaries move to Texas, they buy up historically lower-priced homes, therefore raising the housing costs for everyone else, according to Zillow.

    “Not all residents of Austin are able to make those leaps, and this rapid deterioration in affordability is likely to contribute to a slowdown in appreciation going forward,” said Zillow, in the affordability report.

    In order to increase affordability in cities with rising costs, Zillow suggested changing zoning laws.

    “Increasing the available supply of homes – especially more dense, affordable housing types like townhomes and condos – will help balance the market and give renters and prospective home buyers opportunities to seek relief from being burdened by housing costs,” Bachaud said.

     
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  2. lamont614

    lamont614 Superstar

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    It’s wicked out here
     
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  3. JadeB

    JadeB la force de l'avenir

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    It's an evil world out here- Future
     
  4. WonderCheeks

    WonderCheeks Pro

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    The Texas real estate market is fukked right now. I didn’t plan on being a renter this long after I sold a house I shared with some cousins and my step-father but this is insane. Wages don’t match what they’re selling these houses for.
     
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  5. Tflasha

    Tflasha Superstar

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    :mjcry:when you have to start considering moving out ya city brehs
     
  6. NatiboyB

    NatiboyB MCN Sultan Supporter

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    Thanks to the California’s moving there
     
  7. Kamala Harris

    Kamala Harris Veteran Hall of Shame Supporter

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    And Austin offers nothing compared to other expensive cities
     
  8. WonderCheeks

    WonderCheeks Pro

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    You can’t blame people moving here. I had a professor explain it a few years ago: states like Texas can’t keep the prices of housing low compared to other cities. For one it makes home builders not want to build here because they can build in other markets for a high price. If you can’t line up developers to grow areas for corporations to move here then we won’t get more jobs. The market has always been set to go up for years but a lot of southern states avoided it for decades. He gave a lot of reasons but it matches everything I’m reading about the housing market and inflation. Texas was overdue for a housing inflation.
     
  9. ColdSlither

    ColdSlither Extensive Enterprises Supporter

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    Give a big round of applause to Texas for telling every other state in the Union to come on down. "You know we ain't got like no taxes in Texas right? fukk Cali and those other blue states that won't let you live and do business. Come on we got you." What did people think was going to happen?
     
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  10. SadimirPutin

    SadimirPutin Superstar

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    I still wouldnt overpay for houses like some of these people were...
     
  11. Json

    Json Superstar

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    But for a state as large as Texas isn’t the problem the level of concentration in a few areas?

    It’s not like Austin hold some value resources like gold to fuel it’s momentum.

    I mean New York is a small state
     
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  12. moniemane

    moniemane Pro Supporter

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    My ex wife moves from Austin to a house in manor tx
     
  13. ROFL_GUY

    ROFL_GUY 777 Bushed Hall of Shame

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    Good more $ less hicks

    Tejas will be blue by 2028
     
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  14. UncleTomFord15

    UncleTomFord15 Veteran

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    Actually wanted to move to Houston like 6 years ago, because they had places for rent for like 500 dollars. I know their market boomed too.
     
  15. jadillac

    jadillac Veteran

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    Austin is seen as the liberal place of the south.

    Plus, it's called hill country for a reason. There's no mountains per se, but there's houses on tall hills with California/Seattle esque type views over cliffs. Lake Travis is a nice area etc.

    And there's lots of tech jobs with Google there and now Tesla etc. It was bound to happen
     

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