According to a new report by Forbes, Austin’s housing market is the 2nd most overvalued in the country, KXAN reports. San Antonio was ranked the most overvalued market in the US.
Forbes said Austin’s market is 17 percent overvalued. The median home price in Austin is $286,400. San Antonio’s median home price is $202,600, which Forbes said was 18.6 percent overvalued.
Forbes looked at a city’s nominal income growth, population growth, unemployment, change in rental prices and change in home prices to determine its ratings.
Home builders are putting new homes mostly in Northwest and Southeast Austin and home builders share the concern that the market is overvalued. Homes are getting more and more expensive to build and many buyers are having to spend 30 to 40 percent of their income on their home costs. Most experts recommend putting 25 percent of income towards home costs.
In the last ten years, home prices have skyrocketing in Austin. In 2006, the median price of a home here was $182,000. In 2012, prices started climbing and the current median home price is almost $100,000 more than it was in 2006.
Looking to avoid Austin’s scary home buying market and rent? Austin Apartment Specialists can help! Give us a call today at 512-241-1111 to find your dream apartment today!