Despite a pandemic and record-low inventory, the Austin housing market had a record-breaking year in 2020.
The median home price in the five-county Austin-Round Rock metro increased by nearly 16%, to an all-time high of $370,000, in December, and residential home sales increased more than 16% year-over-year, according to the latest monthly and year-end reports from the Austin Board of Realtors.
The city of Austin saw even more dramatic growth, with the median sales price rising nearly 19% to $461,000—a new monthly record—in December. Residential home sales increased 16.4%, year-over-year.
ABoR officials attributed this growth, in part, to the impact of COVID-19.
"The pandemic only increased demand for all types of housing across the region, pushing inventory to near-zero levels and creating the strongest sellers' market Realtors have ever seen," ABoR President Susan Horton said in a statement.
Dr. James Gaines, former chief economist for the Texas Real Estate Research Center, added: "The pandemic fostered an environment where many families increased personal savings, helping some transition from renting to ownership while others needed to 'move up' for more space while working from home."
Extremely low housing inventory factors into these jumps, with a record-low amount of housing inventory reported in the metro last month, according to ABoR.
"The complexity of a home sale is at an all-time high as it has become commonplace for homes to receive multiple offers well over list price," Horton said.
Horton's predecessor, Romeo Manzanilla, raised concerns about this trend.
"Central Texans who could not find a property within Austin's city limits have historically been able to expand their searches outward to find a home," he said in a statement last month. "But, when the entire region has virtually zero inventory, its leaders must think about how such a broad lack of housing will ultimately impact Austin's sustainability as a destination for business and economic growth."
Demand for housing is amplified by an influx of new residents.
Last month, the Wall Street Journal dubbed Austin a magnet for new corporate jobs, thanks to its lower costs (and taxes) compared to San Francisco and New York City. And LinkedIn reported that Austin gained the most newcomers of any city in the country, based on an analysis of its 174 U.S. users.
Overall, Gaines said the outlook for the 2021 housing market is "very good."
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If you are a committed, grunge-wearing resident of the Pacific Northwest, it is easy–almost automatic–to look at Texas as an extraordinarily dry, hot and culturally oppressive place that is better to avoid, especially in the summer. Our two granddaughters live with their parents in Portland.
Recently we decided to take the older girl, who is 15, to Dallas. Setting aside the summer heat, a Portlander can adjust to the vibes of Austin without effort. So let’s take Texas with all of its excesses straight up. Dallas, here we come.
Our 15-year-old granddaughter and her sister, 12, have spent summer weeks with us, usually separately so that we could better get to know each individually. In visits focused on Austin and Port Aransas, the girls seemed to be developing an affection for Texas.
Houston and Dallas are two great American cities, the 4th and 9th largest, each loaded with cultural treasures, each standing in glittering and starchy contrast to Austin’s more louche, T-shirts and shorts ways.
Three hours up I-35, Dallas loomed before us as a set of gray skyscrapers in a filmy haze, accessed only through a concrete mixmaster of freeways, ramps and exits. I drove with false confidence. Be calm, I said to myself, it will all end in 10 minutes under the hotel entrance canopy. And it did.
The pool at the Crescent Court Hotel in Dallas. (Crescent Court Hotel)
We stayed three nights at the Crescent Court Hotel ($622 a night for two queens), a high-end hotel in Uptown, patronized by women in white blazers, business people in suits, and tall, lean professional athletes, their shiny Escalades and Corvettes darting in and out, and other celebrities like Bill Barr, the former attorney general who shoe-horned his ample self into a Toyota.
Each morning as I walked to Whole Foods for a cappuccino, a fellow identified by a bellman as Billy the Oilman arrived in his Rolls Royce Phantom. Where does he park? “Wherever he wants to. He likes the Starbucks here.”
We garaged our more modest set of wheels for the visit. We were chauffeured for tips by Matt Cooney and Alfonza “The Rev” Scott in the hotel’s black Audi sedan. They drove us to museums, restaurants and past the enclaves of the rich and famous. In Highland Park, The Rev pointed out the homes of the Dallas Cowboys' Jerry Jones and Troy Aikman along with the family compound of the Hunts, oil and gas tycoons.
The Dallas Museum of Art’s “Cartier and Islam” exhibit (until Sept. 18) attracted an older crowd; the nearby Perot Museum of Nature and Science was a powerful whirlpool of kids’ groups ricocheting from the Tyrannosaurus Rex to the oil fracking exhibit. Watch your shins.
A Geogia O'Keeffe oil painting called "Ranchos Church, New Mexico" at the Amon Carter Museum of Modern Art. (Rich Oppel)
For us, the best museum was the Amon Carter Museum of Modern Art in Fort Worth, a 50-minute, madcap drive away via a 75 mph toll lane along I-30. Don’t try it during rush hour. The Carter has an exquisite collection of Remington paintings and sculptures and an excellent array of 19th and 20th-century paintings as well. Pick one museum? The Amon Carter. Peaceful, beautiful, uncrowded, free admission and small enough to manage in two hours.
The Fort Worth Stockyards, a place of history (with a dab of schmaltz), fun and good shopping, filled one of our mornings. The 98 acres brand the city as Cowboy Town, with a rodeo and a twice-daily (11:30 a.m. and 4 p.m.) cattle drive. We shopped for boots, drank coffee and watched the “herd” of 18 longhorns. So languid was their progress that if this were a real market drive the beef would have been very tough and leathery before it hit the steakhouse dinner plate.
The cattle drive at the Fort Worth Stockyards. (Rich Oppel)
But we could identify: the temperature was 97. “I saw a dog chasing a cat today,” said the emcee, deploying a very old joke. “It was so hot that both were walking.”
With limited time, we chose three very different restaurants:
- Nobu, in the Crescent Court Hotel; Jia, a modern Chinese restaurant in Highland Park; and Joe T. Garcia’s in Fort Worth. Nobu’s exotic Japanese menu set us back $480, with tip, for four (we had a guest), but it was worth it.
- Jia was an ordinary suburban strip mall restaurant, but with good food and a reasonable tab of $110 for four.
- Joe T.’s is an 85-year-old Fort Worth institution (think Matt’s El Rancho but larger), a fine Mexican restaurant where a meal with two drinks was $115.
Sushi at high-end restaurant Nobu. (Crescent Hotel)
It was all a splurge for a grandchild’s visit. Now we will get back to our ordinary road trips of Hampton Inns, where a room rate is closer to the Crescent Court’s overnight parking rate of $52. And to corner cafes in small towns.
Did Dallas change our 15-year-old’s view of Texas? “Yes. I think it’s a lot cooler than I did. The fashion, the food.” So, not only Austin is cool. Take Texas as a whole. It’s a big, complex, diverse and wonderful state.
Giga Texas, the massive Tesla factory in southeast Travis County is getting even bigger.
The company filed with the city of Austin this week to expand its headquarters with a new 500,000-square-foot building. The permit application notes “GA 2 and 3 expansion,” which indicates the company will make two general assembly lines in the building.
More details about the plans for the building are unclear. The gigafactory has been focused on Model Y production since it opened in April, but the company is also aiming for Cybertruck production to kick off in mid-2023.
While there is room for expansion on the 3.3 square miles of land Tesla has, this move comes after CEO Elon Musk’s recent comments about the state of the economy and its impact on Tesla.
In a May interview with Tesla Owners Silicon Valley, Musk said the gigafactories in Berlin and Austin are “gigantic money furnaces” and said Giga Texas had manufactured only a small number of cars.
And in June, Musk sent a company wide email saying Tesla will be reducing salaried headcount by 10%, then later tweeted salaried headcount should be fairly flat.
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