Just five years ago, in February 2018, the numbers were approximately $284,000 and $1,980, respectively. Take Our Poll: Are You Concerned About the Safety of Your Money in Your Bank Accounts? The accompanying monthly mortgage payment was roughly $3,450. Here’s an example of how these factors are playing out:Īccording to the Home Ownership Affordability Monitor from the Federal Reserve Bank of Atlanta, the median home price in the Austin-Round Rock area in February 2023 was about $440,000. The Fed bumped the rate by 4.75 percentage points between March 2022 and March 2023 and - on May 3 - enacted a further 25 basis point hike. In addition, while the Federal Reserve doesn’t set mortgage interest rates, the institution’s recent rate hikes have indirectly made it much more expensive to finance a home. Plus, because the state imposed fewer COVID-19 restrictions, it experienced a 60% increase in migration during the 15 months immediately after the pandemic started. Since many professionals can work remotely, people are relocating to Texas in record numbers. Real estate prices in these areas have skyrocketed largely because demand has exceeded supply. See: 10 US Cities With Plenty of Jobs and Cheap Housingįind: 3 Things You Must Do When Your Savings Reach $50,000 What Happened? According to the Housing Opportunity Index published by the National Association of Home Builders/Wells Fargo, less than 33% of homes in those metros are considered affordable (down from 60% in 2014). If you’re thinking about buying property in Austin, Dallas, Fort Worth, or San Antonio, you’ll need much deeper pockets than you did less than a decade ago.

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