The Austin Board of Realtors recently released a report titled "The Truth About Austin's Missing Housing," which revealed a severe undersupply of housing in Austin. The study examined the affordability of two-person and four-person homes in Austin and found that there was a significant shortage of homes in both categories.
According to the report, there is about a 40% undersupply of two-person households in Travis County, resulting in a shortage of 221,603 homes. The shortage increases to about 45% for four-person homes, with a deficit of 247,240 homes. When focusing solely on Austin, the undersupply percentage jumps to approximately 50% for both two and four-person households.
Emily Chenevert, CEO of the Austin Board of Realtors, emphasized the importance of addressing these housing challenges. She commended the leadership of Mayor Watson and the Austin City Council for their commitment to tackling the housing affordability crisis. Chenevert stated, "Our community must come together to address these decades-long challenges," and expressed confidence that the data from the report will lay the foundation for future policy discussions.
Clare Losey, an economist with the Austin Board of Realtors, highlighted the impact of affordability on first-time homebuyers, noting that it has become an even greater barrier since the onset of the COVID-19 pandemic. Losey emphasized the importance of increasing the housing supply in central Texas, stating that homeownership should be accessible to everyone, regardless of socioeconomic status.
The report also revealed concerning statistics regarding income qualifications for mortgage loans. Less than 36% of homeowners in the Austin-Round Rock-Georgetown area earned the required income of approximately $150,000 to qualify for a mortgage loan for the median-priced home. This is a significant decrease from over 60% in 2013. Additionally, the report estimated that only about 17% of renters earn the necessary income to qualify for a mortgage loan for the first-quartile sales price, down from nearly 40% in 2013.
To address the housing affordability crisis, Chenevert proposed several potential solutions. These include revisiting outdated housing blueprints, streamlining development processes, and working towards housing regulatory reforms that prioritize market affordability.
The Austin Board of Realtors' report sheds light on the severe undersupply of housing in Austin and highlights the need for collaborative efforts to address this ongoing issue. With the data from this study, policymakers and community leaders can work towards implementing effective solutions to ensure affordable housing options for all residents.