Austin Housing Inventory Surges to No. 2 in U.S. Since Pre-Pandemic

Austin’s housing supply has jumped back to pre-pandemic levels, easing pressure on would-be buyers who’ve been stuck in a ruthless market.

A new report shows the Austin-Round Rock-San Marcos area’s inventory of homes for sale in June increased nearly 70% since 2019 — the second-largest surge in the nation behind No. 1 Denver. San Antonio-New Braunfels and Dallas-Fort Worth ranked fourth and fifth, respectively, putting three Texas cities in the top five.

They’re among 22 of the 50 largest U.S. metros that now have more active listings than they did pre-pandemic, according to the latest Monthly Housing Report from Realtor.com. The surge in supply suggests those metros are becoming more favorable to buyers, giving them greater negotiating leverage and additional time to weigh their options before making an offer.

MAY HOME SALES: Austin-area home sales, prices fall in May. Pending sales, supply are rising.

“In some areas, affordability concerns have also slowed buyer demand, giving the market room to breathe and contributing to gains in homes for sale,” said Danielle Hale, chief economist at Realtor.com.

In general, inventory goes up when new homes are built, and Austin has seen a lot of new construction since the pandemic. As of May, the region had one of the highest rates for new home construction in the country, issuing 3,889 building permits and seeing the sale of 520 new homes in the first two months of 2025, according to a Consumer Affairs report.

A factor that could increase Austin’s construction rates this year is rollout of a new artificial intelligence program to help review building plans and permit applications. In October, the city approved a $3.5 million contract with Australia-based technology company Archistar, using its eCheck technology to partially automate the permit review process. City spokesperson Maggie Holman said the city is aiming to launch the technology by the end of September.

While Austin and other metros are seeing increases in inventory, they’re the exception. As a whole, the country is still facing a housing shortage of almost 4 million homes, according to Realtor.com, so the U.S. housing market is still far from balanced on a macro level.

But some cities will still have better markets than others, meaning both buyers and sellers should keep a close eye on local trends to inform their decisions.

Cities like Austin, Denver, and Nashville saw rapid construction growth but also now face longer selling times, realtor.com said, both of which contribute to rising inventory.

“In general, we’re seeing strong inventory rebounds in metros that have built more in the last six years,” Hale said. “This milestone underscores both the importance of enabling housing construction and the growing divide in housing conditions across regions, where some markets are rapidly normalizing and others remain stuck in low-supply dynamics.”

Realtor.com is the official website of the National Association of Realtors.