Austin housing boom has homebuilders struggling to keep pace, prices soaring

Austin housing boom has homebuilders struggling to keep pace, prices soaring

Austin housing boom has homebuilders struggling to keep pace, prices soaring

Home construction is booming at a rapid pace across the Austin region — but it’s still not fast enough to keep up with torrid demand, builders and local housing market experts say.

Builders started work on a record number of new homes in the Austin area in the first quarter, according to Zonda, a firm that tracks the housing market. But supply has still not caught up with demand, and that lag — coupled with factors including higher costs for lumber and other home-construction materials and a surge of newcomers, many of them affluent — continues to drive home prices up.

The demand is being driven in part by the wave of people moving in from other parts of the country.  Also playing a role are low mortgage interest rates and buyers who have transitioned to working from home during the coronavirus pandemic and are looking for more space.

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