AUSTIN, Texas — New data shows that there are more build-ready lots in Austin than new homes being built at the current rate of construction.
Austin was categorized as a “significantly oversupplied market,” according to data from housing research firm Zonda. Austin was one of only two cities in the U.S. identified in this bracket.
Austin also had the highest year-over-year decline in home value, with the average dropping by approximately 6%, according to data from Zillow. Austin home values had the largest average decline of any U.S. metro.
Other major Texas markets came in more balanced than Austin, with Dallas being slightly oversupplied, and Houston and San Antonio categorized as appropriately supplied.
The U.S. as a whole was identified as slightly undersupplied.
“Policy uncertainty, the current cost of living, student loans, labor market concerns, interest rates, home prices, changes to immigration, geopolitics, and more have all slowed consumer demand,” Ali Wolf, chief economist for Zonda, said. “Builders have scaled back starts in response to slower sales, which by extension has allowed for lot supply to grow.”