Austin Board of REALTORS® releases Austin’s Missing Housing - District Level Analysis
Report examines housing affordability and availability in Austin City Council Districts
AUSTIN, Texas – Today, the Austin Board of REALTORSⓇ released “The Truth About Austin’s Missing Housing - District Level Analysis,” a new research report that highlights the scope of Austin’s housing problem by breaking down Austin’s severe undersupply of housing by City Council District and among five racial/ethnic groups. This new report serves as a companion piece to “The Truth About Austin’s Missing Housing Analysis” released in August 2023. In its analysis, ABoR offers actionable policy recommendations to help fill the housing gap and provides an update on recommendations that the City of Austin is working to implement.
The August 2023 report found that more than half of four-person households earning 80% median family income or less, commonly $93,450, face a severe shortage of homes, 211,023 homes, considered affordable to them, equating to an estimated 50.0% undersupply. However, this new report found that Austin’s shortage of homes is not evenly distributed across City Council Districts or race and ethnicity.
“This report highlights the profound scope of Austin’s housing problem and reinforces why prioritizing housing policies is paramount,” Emily Chenevert, chief executive officer of ABoR, said. “We can now clearly show exactly where in our city and who specifically is most impacted by the severe shortage of homes needed to house our communities. When we talk about housing affordability and accessibility, we are talking about all Central Texans, across all price points, being able to find housing near where they work and play, and at a price point that is affordable for their household income. As a community, we must come together to take swift and bold action to change the trajectory of our housing market.”
The analysis revealed that:
District 4 has the greatest proportional need for new housing to meet the housing demand for its population with an estimated 27,815 missing homes, or a 65.6% undersupply of housing.
District 10 has the lowest proportional need for new housing with 25,627 shortage of homes or an estimated 39.3% undersupply of housing.
District 5 has the largest number of missing homes estimated at 32,109, a 53.4% undersupply, followed closely by District 7 with a 31,130 shortage of homes, a 51.3% undersupply.
The analysis found a similar disparity seen nationally in the housing shortage among racial and ethnic groups in Austin. All racial and ethnic groups in the City of Austin earning 80% MFI or less, faced a shortage of affordable homes for sale in the first half of 2023. However, on average, minority groups–particularly, Hispanic/Latino, Black/African American and households of Other Races–face lower housing affordability than White (non-Hispanic or Latin) households in the City of Austin and across all 10 City Council Districts.
In the City of Austin, the shortage of affordable homes for sale for:
Black/African American households is 68.7%, an estimated 26,388 shortage of homes.
Hispanic/Latino households is 63.2%, an estimated 77,677 shortage of homes.
Other Race households face is 57.1%, an estimated 60,746 shortage of homes.
“Homeownership remains the primary mechanism to build generational wealth,” Clare Losey, Ph.D., ABoR housing economist, said. “Differences in homeownership rates and home values by race and ethnicity indicate that affordability could be a larger constraint for particular racial and ethnic groups, which is underscored by the data showcased in the report. An insufficient supply of homes for sale in the Austin-Round Rock MSA makes homeownership difficult to achieve for many Central Texans, particularly for lower- and middle-income households.”
Chenevert added that recent local policy changes are a step in the right direction, but there is still more to be done to address the region’s housing problems.
“We must meet the challenge of housing our rapidly growing population by embracing creative ways to increase the abundance and variety of housing. We are pleased that this Mayor and council understand the gravity of Austin's housing challenge and have started the important work of addressing it head on.”
To download the full analysis of The Truth About Austin’s Missing Housing - District Level Analysis, visit www.abor.com/thetruth.
Methodology:
The report computes housing affordability for four-person households in five racial or ethnic categories:
White (non-Hispanic or Latino)
Hispanic or Latino
Black or African American
Asian
Other race
The five income cohorts reflect those adopted in the Austin Strategic Housing Blueprint:
0-30%
31-60%
61-80%
81-120%
121+%
Income limits for each cohort and household size were obtained from the 2023 HOME and CDBG Program Limits published by the City of Austin’s Housing Department.
About Unlock MLS Research: Unlock MLS Research is the economic research and publication arm of Unlock MLS. Led by Housing Economist, Dr. Clare Knapp, Unlock MLS Research delivers timely market intelligence that helps Central Texas real estate professionals, consumers, and policymakers understand trends and economic factors impacting the region's housing market. For more information, contact the ABoR public relations team at abor@ecprtexas.com. For the latest local housing market listings, visit AustinHomeSearch.com.