AUSTIN (KXAN) — Thursday’s passage of Austin City Council’s HOME initiative marks a potentially major shift in the city’s housing market, but any impact of the measure will likely not be felt in 2024.
Zillow, the Urban Land Institute (ULI) and the Austin Board of Realtors (ABoR) each provided KXAN with their predictions for the next year in housing in Austin and Central Texas.
Zillow: Optimism for 2024, AI coming
Zillow Senior Economist Orphe Divounguy talks about the indicators he said will make 2024 a good year for housing. Also, the company makes six big predictions for the home-buying process over the next year.
“Sitting on the sidelines when you have the opportunity is probably not the best idea,” Divounguy said.
ABoR: Austin’s stabilization has begun
ABoR Economist Clare Losey indicated home prices in Austin have begun to normalize after the city’s 2020 boom, but affordability is still a distant goal.
“We know that for any given homebuyer in the Austin MSA, they generally need to make an income of $90,000 to $100,000 to even be able to enter the market for homeownership,” Losey said. “Finding a supply of affordable inventory at price levels that are conducive to that income is another story.”
ULI: The real estate industry must adapt
A report from ULI calls for new thinking in the real estate industry, and ULI Programs Committee Chair Lance Copeland said Austin will also need new thinking.
“For a long time, there was a sense that if we don’t build it, they won’t come, or if we make it difficult to grow, the city won’t grow. Pretty much the opposite has played out in terms of growth in the city,” Copeland said.
Read More: Realtors, economists make predictions for 2024’s housing market