Daily Briefing: 🌆 Austin's Climate Playbook: More Houses, Fewer Emissions? 💡

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Here’s what you need to know about CenTex CRE Today:

1. Central Texas housing supply peaks, sales slump, median price at $452,080. 📉

2. Austin's denser housing could slash greenhouse emissions, aid climate goals. 🌆

3. Austin Board of Realtors: Four-month supply highest in 8 years. 🏘️

4. Affordable homes under $300,000 remain in high demand in Austin. 💰

Housing Market Dynamics

Housing supply hits highest level in years in Central Texas market, but sales are down

Source: Austin American-Statesman

Summary: Central Texas and Austin's housing market have seen a decline in the number of home sales and median close prices due to higher mortgage interest rates. The Austin Board of Realtors reported a decrease of 18.2% in sales from September 2022. The median price also dropped by 4.3%, with a median closing price of $452,080. Despite this, the housing supply has reached a four-month inventory, the highest in over eight years. However, despite the increased supply, it's still below the six to six-and-a-half months that experts regard as a balanced market. Affordable housing remains limited with high demand for homes priced under $300,000.

Why this matters: An understanding of the factors affecting the residential market, such as rising interest rates and housing availability, can aid commercial real estate professionals in advising their clients on potential impacts on commercial and investment property values.

Austin-Round Rock metro area housing has most inventory on hand in more than 8 years, ABoR says

Source: KXAN News

Summary: The Austin Board of Realtors has reported that the Austin-Round Rock MSA housing inventory has reached a four-month supply, the highest level in over eight years. Despite this increase in inventory, the market saw a decline in closed sales, down 18.2% year over year. This fluctuation has been attributed to higher mortgage rates, leading to a dip in prices. The average housing prices vary across counties, with Travis County leading at $525,000. However, the current housing supply may not be attractive to first-time homebuyers or those seeking more affordable homes, as many of these homes are unattainable for the average Austin resident.

Why this matters: Understanding these market trends can help commercial real estate professionals advise their clients on optimal times for property investments, especially those looking to diversify their portfolios with residential properties.

Environmental Impact and Housing Density

How Housing Density Could Help Austin Reach Climate Goals

Source: Austin Monitor

Summary: A report from the nonprofit Transit Forward expounds on how Austin can meet its climate and transportation goals by encouraging increased housing density – a move that could reduce greenhouse gas emissions. The report shows that dense housing units in the city center have a lower carbon footprint than single-family homes. It advocates for an increase in housing density in combination with improved access to transit systems, given that housing and transportation are the leading contributors to greenhouse gas emissions.

Why this matters: Understanding this trend towards supporting increased housing density and improved transit systems in Austin can help commercial real estate professionals strategically advise their clients on investments in dense housing units and properties near transit in the city center.