It is good to be a homeowner in Austin, Texas. It is tough to be trying to be one there.
Redfin reports the total value of homes in the Texas capital surged 39.2% in 2021, the largest gain among the 100 most populous U.S. metropolitan areas, and more than four times the annual gain in the D.C. metro area.
The $103 billion increase in home values in Austin last year is roughly equal to the 2020 GDP of Ecuador.
Redfin says out-of-towners moving to Austin from more expensive cities, such as San Francisco and New York are spending more to buy a home there, boosting prices overall.
The D.C. metro was actually among cities with the smallest annual gain in total home value, rising 8.8% in 2021.
Baltimore was also in the bottom 10 for annual home value gain, at 10.3%, so was Frederick, Maryland, at 9.1%.
St. Louis was the only metro that saw a decline in home values in 2021, falling 2.1%.
The overall value of all homes nationwide surged 18.6% in 2021 to a record $38.6 trillion. Home values in rural areas and suburbs rose more than core cities, up 19.5% and 19.2% respectively.
Single-family homes also outpaced condos, rising 19.6% compared to 15.4%.
“Single-family homes became a hot commodity during the pandemic with scores of Americans exchanging cramped condos for bigger houses. That said, condo demand has started to rebound as cities have bounced back and buyers have found themselves priced out of the single-family home market,” Redfin said.
Redfin’s full report is online.
