Housing Market Slows Down for First-Time Homebuyers in Austin

AUSTIN, Texas — As average rents in the Austin area continue to soar, more young adults are looking into purchasing their first home. It's a process that can be stressful, and over the past couple years younger adults have backed off the idea of purchasing their first home because of the rising costs created by the pandemic. According to the Austin Board of REALTORS, during 2020-2021 it was harder for first-time home buyers to break into the Austin market, but now, the competition is starting to calm down.

“The market is slower than we have seen in a few years and there’s more inventory, more homes to choose from. So, what this means for a buyer is that they face less competition as they’re shopping for a house," President-Elect Ashley Jackson said in an interview with CBS.

Some buyers of various ages have taken a step back from purchasing a home. Younger adults still face not making enough money, large amounts of student loan debt, and not having the credit needed to purchase their first home.

“It can hinder the potential buyer's ability to save, they’re going to be spending a higher proportion of their income on repaying that debt than a household that doesn’t otherwise have that debt," said Clare Losey with the Texas Real Estate Research Center.

“If your wages are down and the home prices are up that will absolutely present a challenge and some of those first-time homebuyers who are in that situation find themselves perhaps looking for a cheaper home," Jackson said.

It is recommended to always work with a lender and a Realtor so the first-time homebuyer can better understand the market. There can be deals available that they don't want to pass up.

“You’ll see homes sitting for 30+ days, sellers are now paying for closing costs again," Jackson said. “There are so many options available to first-time homebuyers. I think a lot of people just don’t know what’s out there.”