AUSTIN’S HOUSING INVENTORY: EXPECTATIONS FOR 2024

Overhead image of houses in Austin, TX. Is there enough housing inventory to appeal to buyers?

If you’re considering a move to Austin, you may be wondering what type of housing inventory awaits you. Housing inventory is basically the amount of properties that are listed as ‘active’ on the current market, in addition to sales that are pending. Once a property is listed on the market, it’s classified as inventory. This is often calculated on a monthly basis by analyzing the amount of active listings and potential sales. If there is an icrease in inventory then home prices are less likely to spike.

Texas is big in all ways, and a big part of the attraction is its business-friendly attitude and tax-wise sensibility. Austin remains the most appealing city, according to many sources including PODS®, for offering job and entrepreneurial opportunities across the spectrum from education and high tech to home services, healthcare and everything else.

Factor in the warm climate, food and music, recreation, entertainment and diversity in culture and lifestyle, and it’s hard to find something not available here in the capital city of the Lone Star State.

Austin Housing Inventory and its Challenges

All the hullabaloo and allure, however, comes with some challenges, and the Austin housing inventory may top that list. Everyone has to live somewhere, and the influx and growth of technology companies especially setting up shop in the Austin area brings more people seeking more than a roof over their heads. Depending which source one looks at, there are a few thousands homes on the market right now in Austin.

Issues for Younger Generations

Single-family homes drive the real estate marketplace. Gen X (born between 1965 and 1980) and Gen Z (approximately from 1997 to 2013) are beginning to settle down and think long-term, trading life in the fast lane as renters for life in the slow lane as homeowners. Gen Xers purportedly value independence and a healthy work-life balance, and they are more technologically comfortable than previous generations. As for Gen Z, they are emerging as financially-responsible, tech savvy and the most diverse generation born in the U.S.A.

These may be the largest population segments in the home buying market, and they do indeed treasure the single family home. Thus, the builders and renovators, along with municipality overseers, are wise to consider what appeals to them in terms of housing options and respond accordingly.

Toll Brothers, Lennar Homes, Sunfield, Meritage Homes and others are scrambling to plan, secure approvals and build communities in and around this “live music capital of the world” with quality homes and amenities which appeal to today’s home buyers. Planned communities with green space, playgrounds, curbs, sidewalks and gathering spots have replaced subdivisions with their cookie cutter homes all neatly lined up in a row. Many have Homeowner Associations (HOAs) which address architectural and maintenance issues, thereby preserving attractive neighborhoods and guarding property values.

What Buyers Look for in Terms of Housing Inventory

As seen on House Hunters and other television programs, home buyers look for lots of different things, though spacious backyards, nicely appointed kitchen, open space interiors and more bathrooms seem to rank fairly high for everyone. New homes in Austin run the gamut in price ranges, luxury accoutrements and just the basics, so there is something-for-everyone here. Move-in ready includes the new build and the newly flipped or renovated. For the DIY crowd, there are plenty of older homes with lower price tags, though the price rises with renovation costs. The advantage is ending up with what the homeowner likes and not settling for someone else’s choices. With prices on the upswing in Austin over the past decade, there are aging baby boomers ready to claim their equity, sell the lawnmower and downsize their living quarters.

Current Trends in the Housing Market May Affect Inventory

The housing market for 2024 appears very stable, with prices even down a wee bit from 2023. Single family homes are on the market a few days longer than last year, so motivated sellers may entertain offers they didn’t need to consider if they listed one or two years ago. With mortgage interest rates also steady and perhaps nudging down a little as inflation settles, the 2024 housing market may respond in no longer being overpriced or out of reach.

There are thousands of houses for sale in Austin, in large part to the boom in building by local and national homebuilders. Master planned communities are the new normal, but there are plenty of houses for sale in older neighborhoods and on larger lots. Where house sales used to flow more with the academic year, housing moves in and around Austin all year round.

Lining up with a Habitat Hunter real estate professional offers the inside scoop on newly listed and about-to-be-listed homes, as well as a seasoned home buying and selling representative serving your best interests. The real estate market and housing inventory is strong and stable in Austin. In fact, 2024 may well be your year to settle into a new house and begin building equity and enjoy making your home nest just the way you like it.