Austin Faces Housing Crunch as San Antonio Surges Ahead
In the battle of the Texas giants, Austin is finding itself on the back foot when it comes to keeping up with housing demands. Recent data suggests that while Austin is growing, it’s struggling to match the pace of construction happening right next door in San Antonio.
Construction Boom in San Antonio
According to housing data firm Zonda, the third quarter of 2023 saw metro San Antonio kick off an impressive 17,751 home starts annually. That marks a whopping 33% surge in construction compared to last year! Meanwhile, Austin managed to initiate only 16,663 homes during the same timeframe, translating to just an 11% increase. It seems like when it comes to getting things built, San Antonio has the upper hand.
“It’s easier to get things done in San Antonio, and homes are more affordable as well,” said Keith Hughes, vice president of sales with Zonda. This sentiment echoes what many locals have been feeling, and it highlights the challenges Austin faces in meeting its housing demand.
A Population Growth Tale
Let’s take a closer look at the numbers. Both metropolitan areas boast similar population sizes, yet Austin experienced a growth spurt of 2.1% between 2022 and 2023. That brings in about 50,000 new residents to the capital. On the flip side, San Antonio saw a growth rate of around 1.7%, adding roughly 37,000 people to its ranks. Despite the influx of newcomers, Austin is having a tough time translating that growth into new homes.
Affordability Struggles
To add to the challenges, the housing costs in Austin are creating quite a headache for potential homeowners. As it stands, recent data showcases Austin as the least affordable metro in Texas, a title it seems to wear heavily. The median home price in Austin is currently around $425,000, quite a leap compared to San Antonio’s more manageable median price of $312,000. For many, the dream of owning a home in the capital could be slipping away, especially when people look at their wallets.
In fact, the San Antonio Board of Realtors reported that the median home price here makes it much easier for families to find something that fits their budget. With rising costs creating a wider gap, it’s becoming clear that Austin may need to rethink its strategies if it wants to keep up.
The Bigger Picture
The housing market isn’t just a Texas thing; it’s a broader trend. Cities outside of Texas, like Phoenix and Miami, are witnessing staggering growth rates at 50% and 44% respectively, which only highlights the struggle Austin and San Antonio are facing. These numbers reveal the ongoing challenges within the housing market, with cities racing to accommodate soaring demand.
What’s Next for Austin?
Local officials in Austin are aware of the looming challenges and are currently working on implementing several new zoning categories aimed at boosting home construction. They’re hoping this will pave the way for more affordable housing options in the city, but the effectiveness of these measures remains to be seen.
As housing demands continue to rise, the pressure is on for Austin to step up its game and ensure that it does not fall further behind its neighbor. While this Texas rivalry heats up, only time will tell how these two cities navigate the complex landscape of housing and growth. For now, it looks like San Antonio is winning the race, making it a fascinating scenario for residents and prospective homebuyers alike.
