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A home for sale in Austin. Rising inventory and easing competition have made the metro one of the more favorable large U.S. markets for buyers, according to ConsumerAffairs.<\/p>\n
Austin American-Statesman file photo<\/p>\n
After years of intense demand, Austin now one of the most favorable big-city housing markets for buyers.<\/p>\n
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A new ConsumerAffairs study<\/a> ranks Austin No. 9 among the best U.S. metros for buyers, pointing to easing competition as inventory improves and prices cool from pandemic-era highs.<\/p>\n Article continues below this ad<\/p>\n The shift has been\u00a0slowly building for months<\/a>. An October report from online brokerage Redfin ranked Austin as the nation\u2019s top buyer\u2019s market and more recent data suggests supply is continuing to outpace demand, giving buyers more time to shop and room to haggle. A February analysis from housing research firm\u00a0Zonda found the Austin metro is now \u201csignificantly oversupplied<\/a>\u201d with build-ready home lots \u2014 a sharp reversal from pandemic-era shortages.<\/p>\n For its ranking, ConsumerAffairs analyzed 272 U.S. cities with populations of at least 100,000, scoring each on a 100-point scale across four categories: housing market competitiveness, affordability, home size and livability. Competition, including inventory levels and the share of homes selling above list price, carried the most weight, followed by affordability measures such as price-to-income ratios and cost per square foot.<\/p>\n It shows Austin remains more favorable for buyers than many large metros, though the rankings were dominated by smaller cities in the Sun Belt. Florida cities led the most buyer-friendly markets, while California metros were the least favorable.<\/p>\n A separate analysis from Realtor.com<\/a> reinforces Austin\u2019s status. Just over 60% of the nation’s largest housing markets have tilted into balanced or buyer-friendly territory, the website\u2019s latest report said, while just 26% remain seller’s markets.\u00a0<\/p>\n Article continues below this ad<\/p>\n Realtor.com\u2019s newly released \u201cMarket Clock\u201d<\/a> places Austin as one of eight major U.S. metros that have already tipped into buyer-friendly territory. Of those eight markets, five are in either Florida or Texas \u2013 including Austin, Tampa, Jacksonville, Orlando and Miami. All eight were clustered in either the South or the West Coast, while the analysis found most seller\u2019s markets concentrated in the Northeast and Midwest.<\/p>\n Dayna Edens, media relations manager at ConsumerAffairs, said Austin is \u201cless chaotic\u201d than other markets because potential buyers have more options.<\/p>\n MORE: Texas ranks among worst states for renters, new report finds<\/a><\/p>\n In January, it found 3,257 Austin homes were listed for sale, or 328 per 100,000 residents. That means buyers have more homes to choose from, easing the pressure to rush into a decision \u2014 and providing more leverage with sellers.<\/p>\n Article continues below this ad<\/p>\n Only 8.7% of homes are selling above asking price, which Edens said is the lowest rate among big cities in the report. Buyers in Austin have more wiggle room to negotiate and avoid overpaying.<\/p>\n \u201cYou\u2019re also getting a bit more space for your money in Austin,\u201d she\u00a0said. \u201cThe typical home is just under 2,000 square feet, which is one of the larger averages compared to other major cities. For a lot of buyers, that extra space can make a big difference day-to-day.\u201d<\/p>\n Austin stills falls behind other markets in terms of affordability, but Edens said the relatively high incomes of Austin residents makes that number more manageable.<\/p>\n \u201cOne interesting thing about Austin is that fewer homes are owner-occupied compared to some other big cities\u00a0\u2014 just about 41%,\u201d Edens said. \u201cA lot of that likely comes down to how much of a destination the city is.\u201d<\/p>\n Article continues below this ad<\/p>\n Recent data from Unlock MLS shows inventory across the Austin-Round Rock-San Marcos metro reached 6.5 months in February<\/a> \u2014 slightly above the level generally considered a balanced market. Pending sales — homes under contract but not yet closed — jumped nearly 14%, suggesting increased buyer activity.<\/p>\n