Austin Expected to Become Most Expensive US City for Homeowners Outside California

[Elderberry]

Texas Scorecard By Jacob Asmussen August 18, 2021

Austin Expected to Become Most Expensive US City for Homeowners Outside California

The glaring problem highlights the state’s crushing property taxes as well as local government officials’ poor decisions.

New reports continue to spotlight the intensifying damage of high property taxes and poor local government decisions on citizens in Texas’ capital city.

By the end of this year, real estate company Zillow expects Austin will be a harder place to afford a home than Seattle, Miami, and even New York City. The report states by December, Austin will be the least affordable city in the United States (outside of California).

“The quick rise in home values compared to the relative stability of income is what’s causing a lot of that lack of affordability,” said Nicole Bachaud, an economic data analyst and the report’s author.

“If you’re not in the technology industry, and you’re not earning those wages, you’re probably going to be priced out,” another expert said.

The Austin Board of Realtors reported that in June, Austin metro’s median home price was more than $482,000.

Though the housing market is hot because of numerous factors (such as an influx of wealthy out-of-state homeowners and renters migrating to Austin), Bachaud explained the city should do their part to help struggling families by removing some of their burdensome building and zoning regulations.

“One way for places like Austin and California to ensure that current residents aren’t being priced out as housing burdens rise and remain high is to relax zoning restrictions and create paths that make building new inventory easier,” Bachaud wrote. “Increasing the supply of more affordable housing units – including high density housing such as townhomes and condos – can also help to ease some of the price pressures for many who find current values unreachable.”

More: https://texasscorecard.com/local/austin-expected-to-become-most-expensive-us-city-for-homeowners-outside-california/

[PeteS in CA]

Higher than NYC or Honolulu?

Two big parts of CA's housing price problem are anti-growth enviro-regs and the various regs, approval processes, and take-aways that eat development profits. I doubt that Austin Libs will give those up, just as Prog CA pols won't.

[DefiantMassRINO]

Sounds like a snow job by Austin realtors and developers trying to drum up prices and commissions.

It's snobby moonbat environmental preservation, historical preservation, and zoning restrictions artificially constraining the amount of land available for new development and limiting what can be done with existing properties.

In the town next door, developers are demolishing structurally sound 1,000 sq ft ranch houses, 1,200 sq ft row houses, and 1,600 sq ft cape houses on 1/4 acre or smaller lots to build 2,000 sq ft + colonial houses.

The bigger houses on exisitng lots are necessary to recover the cost of the lot, and still allow for a profit.  An existing lot and house will be purchased for $400,000 - $600,000, redeveloped with a new larger home, and sold for $1,250,000 or more.

Rising home values means higher property taxes.  Many poor, working, retired, and elderly persons can no longer afford to live in the town.  Firefighters and police are allowed to live in nearby towns because they cannot afford to live in the town for which they work.

Elitist limousine liberalism is to blame for economic disparities in the Boston metro area.

[mountaineer]

https://twitter.com/EricSpracklen/status/1435937962907340811

[catfish1957]

When I was young, say 40 years ago, Austin was always a primo location for a weekend getaway or a week of vacation.  Plenty to do.

From feedback from my kids, the better part of Austin night life is not a safe location.  In 1980, 6th Street was just strange and fascination the things you saw.  Now I hear it is just pestilence, ugliness, and danger.

As far as the Austin real estate situation?  In this economy, and where it stands for a historic correction? They really need to rename Austin....   Bubbleville.

[IsailedawayfromFR]

When I was young, say 40 years ago, Austin was always a primo location for a weekend getaway or a week of vacation.  Plenty to do.

From feedback from my kids, the better part of Austin night life is not a safe location.  In 1980, 6th Street was just strange and fascination the things you saw.  Now I hear it is just pestilence, ugliness, and danger.

As far as the Austin real estate situation?  In this economy, and where it stands for a historic correction? They really need to rename Austin....   Bubbleville.

I grew up in Austin.  As a teenager in the 60s, I rode city busses and my bike around town. 

6th street was a run-down area one did not venture to after dark.

Have visited there every year as my family still lives there but have no desire to live there again.

I lived in California for awhile and Austin now resembles CA.

[massadvj]

I have a cabin in Canyon Lake, about one hour south of Austin.  I bought it in 2003 for $58K, put about $10K into it over the years.  Now it is worth $225K and continuing to go up.  A year ago I would have put the value at about $165K.  That is how crazy real estate is out here right now.

[catfish1957]

6th street was a run-down area one did not venture to after dark.

I used to visit in the late '70's and early '80's.  Kind of big burly guy, so I never felt I was in any danger.  Hearing the likes of SRV at clubs, and other outlaw rock bands in that era was a blast.   Walking 6th street back then wasn't much a feeling of danger, but more like visiting a zoo.

[IsailedawayfromFR]

I have a cabin in Canyon Lake, about one hour south of Austin.  I bought it in 2003 for $58K, put about $10K into it over the years.  Now it is worth $225K and continuing to go up.  A year ago I would have put the value at about $165K.  That is how crazy real estate is out here right now.

I watched them build Canyon Dam in the 60s.  Bet I could have gotten a pretty good price for the real estate close to the water way back then.

My dad bought a modest lakehouse on Lake Travis back in the late 70s for $60k on 2 acres that is now tax assessed for over $1mm with very little in the way of improvements since then.

[IsailedawayfromFR]

I used to visit in the late '70's and early '80's.  Kind of big burly guy, so I never felt I was in any danger.  Hearing the likes of SRV at clubs, and other outlaw rock bands in that era was a blast.   Walking 6th street back then wasn't much a feeling of danger, but more like visiting a zoo.

Yeah, I saw Jerry Jeff and Willie at some of the dive places too, but I admit I also ventured into Armadillo World HQ as well.  Smell of weed there was a bit too toxic for me, though.

[AARguy]

If you can't get a picture of the homeless, the tents, the trash, and the filth in San Francisco, just get a picture from Austin... they are interchangeable. Austin was a fun place to have dinner when I was stationed at Ft Hood in the 1980's. Now its a blight on the Texas landscape. Don't judge Texas by Austin. That's like judging New York City by the Staten Island dumps.