Part 6/8:
A significant factor in Austin's housing boom was the influx of investors—over 28% of homes sold in 2022 went to out-of-state buyers, hedge funds, and Airbnb operators. However, as interest rates climbed, investor activity cooled, leading to an oversupply in housing that exacerbated price drops. The initial appeal of Austin as a quick profit venture shifted, forcing developers to confront a market that no longer promised explosive growth.
Reality Check
Despite the downturn, Austin's population still grows—albeit slowly—about 1.3% in 2024, down from a vibrant 3% in 2021. The city still boasts a stable job market with an unemployment rate under 4%. But the fervor surrounding its transformation into a tech utopia has faded.