- Katey Psencik American-Statesman Staff
Look, we don’t have to tell you Austin has become an increasingly expensive place to live over the last decade or so. Home prices are still on the rise, but the good news is the market’s showing signs of normalizing.
Regardless, Forbes has named the Texas capital the No. 2 most overvalued housing market in the country, behind San Antonio. The report states homes in Austin are overvalued by 17 percent, with a median price of $286,400. But that contradicts the Austin Board of Realtors’ mid-year report released Thursday, which states the median price for a home in Austin is $365,000, and the median home price for the region is $314,000. Forbes’ report said it got its data from the National Association of Realtors and the U.S. Bureau of Labor Statistics, among other sources.
Forbes’ report determined the most overvalued markets by weighing income growth, population growth, unemployment, change in rental prices and change in home prices and examined the year-over-year change in those metrics.
But here’s more good news: Austin isn’t quite as overpriced as San Antonio. Last year, the two cities tied for the No. 1 most overvalued housing market.