{{titleBar.title}}

{{titleBar.tagline}}

 

 

Austin-Round Rock-Georgetown Housing Affordability OutlookAustin-Round Rock-Georgetown Housing Affordability OutlookClare Losey, Harold D. Hunt, and Reece Neathery2023-02-23T06:00:00Ztechnical-report
Residential

​Purchase Affordability

Year over year (YOY), affordability moderated in 4Q2022 despite higher mortgage interest rates. YOY growth in both the median and first-quartile sales price was slightly negative, at -0.8 percent and -3.9 percent, respectively (Figure 1 and Table 1).1 The significant YOY increase in family income followed years of modest rises (Table 2).




The rapid rise in mortgage interest rates in the second and third quarters continued into the fourth. Rates averaged 6.66 percent in 4Q2022, up considerably from 2Q2022 and 3Q2022, which averaged 5.27 and 5.62 percent, respectively (Figure 2). All other things being equal, lower (higher) mortgage interest rates translate into lower (higher) monthly mortgage payments and ease (diminish) purchase affordability.​ The Federal Reserve is widely anticipated to raise the federal funds rate an additional 75 basis points in 2023 to reduce inflationary pressures. Expectations dictate mortgage rates will continue to dissipate slightly before settling in the 5 percent range. For more information on the effect of mortgage interest rates on purchase affordability, see "How Higher Interest Rates Affect Homebuying." 


____________________
1 The first quartile reflects the lowest-priced 25 percent of homes sold in a particular geography. The first-quartile sales price represents the highest home price among those lowest-priced 25 percent of homes sold. If the price of the lowest 25 percent of homes sold ranges from $100,000 to $150,000, the first-quartile sales price would be $150,000.


To read this article in its entirety, ​download the pdf. 

Previous reports: 

2022: 1Q2​022​, 2Q2022​, 3Q2022

2021: 4Q2021

Digital and Print2346https://www.recenter.tamu.edu/articles/technical-report/Austin-Round-Rock-Georgetown-Housing-Affordability https://assets.recenter.tamu.edu/Documents/Articles/2346.pdf

 

 

Austin-Round Rock-Georgetown Housing Affordability OutlookAustin-Round Rock-Georgetown Housing Affordability OutlookResidential
GP0|#6dc986ba-65e2-415c-a344-5c82cf4ced00;L0|#06dc986ba-65e2-415c-a344-5c82cf4ced00|Losey;GTSet|#09a90ae9-5078-4623-b9a4-e3be6b49b0ad;GP0|#d5f72a7f-f967-43d8-b337-f5acbfa3e591;L0|#0d5f72a7f-f967-43d8-b337-f5acbfa3e591|Hunt;GP0|#51e62abe-f843-410f-884a-3e71f4eee77f;L0|#051e62abe-f843-410f-884a-3e71f4eee77f|Neatherytechnical-report
GP0|#41e072f1-5aa0-4f6b-b84a-f55b1dfecabb;L0|#041e072f1-5aa0-4f6b-b84a-f55b1dfecabb|housing;GTSet|#57d56836-73e8-45f7-b61c-9193be1c0a6e;GP0|#352f927d-7bd3-4298-9a83-36a0cc1f7626;L0|#0352f927d-7bd3-4298-9a83-36a0cc1f7626|affordability;GP0|#b96a926f-e613-4d73-9d81-1230d9151247;L0|#0b96a926f-e613-4d73-9d81-1230d9151247|homebuyer;GP0|#e4f408d5-3c95-4adb-aac4-669e10867c3e;L0|#0e4f408d5-3c95-4adb-aac4-669e10867c3e|Austin;GP0|#fdf4f7d3-ef0e-4142-82fd-899addad6cd8;L0|#0fdf4f7d3-ef0e-4142-82fd-899addad6cd8|Georgetown;GP0|#14697f5d-18a5-4839-b2cc-1c335f57ff49;L0|#014697f5d-18a5-4839-b2cc-1c335f57ff49|Round Rock;GP0|#ade2248e-f439-4015-a7d1-1d3dafe51b92;L0|#0ade2248e-f439-4015-a7d1-1d3dafe51b92|MSA;GP0|#3592ba1f-0d49-43c4-a20d-d0cb83a3c7ea;L0|#03592ba1f-0d49-43c4-a20d-d0cb83a3c7ea|trend

 

 

Texas Border EconomyTexas Border Economyhttps://www.recenter.tamu.edu/articles/technical-report/Texas-Border-EconomyJoshua Roberson and Rajendra Patidar
Texas Quarterly Commercial ReportTexas Quarterly Commercial Reporthttps://www.recenter.tamu.edu/articles/technical-report/Texas-Quarterly-Commercial-ReportHarold D. Hunt, Adam Perdue, Daniel Oney, Reece Neathery, and Michael Mwizerwa
Texas Housing InsightTexas Housing Insighthttps://www.recenter.tamu.edu/articles/technical-report/Texas-Housing-InsightJoshua Roberson, Weiling Yan, and John Shaunfield
Come Fly With MeCome Fly With Mehttps://www.recenter.tamu.edu/articles/tierra-grande/Come-Fly-With-Me-2376Rusty Adams
Austin Home Price IllusionAustin Home Price Illusionhttps://www.recenter.tamu.edu/articles/tierra-grande/Austin-Home-Price-Illusion-2378Adam Perdue, Weiling Yan, and Reece Neathery
Blockchain and Real EstateBlockchain and Real Estatehttps://www.recenter.tamu.edu/articles/technical-report/Blockchain-and-Real-EstateLuis B. Torres and Kyle Brann