August 29, 2023 | Driving It Home with ABoR's Housing Economist

Dive into the NEW "Truth in Austin's Missing Housing" report and explore the severe undersupply of housing in Austin and actionable policy recommendations aimed to help bridge the gap between residents and missing housing. https://www.abor.com/thetruth Job growth in the Austin MSA moderated in July to 3.1%, slightly lower than that of Texas (3.3%). The Information sector (which is largely reflective of the tech industry) saw a slight dip in YoY job growth (-0.9%), while sluggish growth in the Financial Activities sector also posed a headwind to the labor market. Meanwhile, new single-family permits continue to rise after reaching a recent low of approximately 850 in December 2022. In July 2023, 1,400 new single-family permits were authorized, indicating that, despite higher mortgage rates, homebuilders remain optimistic about the demand for new homes in the Austin MSA over the near-term.  On a week-over-week basis, sales activity contracted in the broader Austin market. Mortgage rates have steadily increased since April, averaging 0.5 percentage points higher in July than in April. Last week saw the highest mortgage rate in over two decades, averaging 7.23%. There's typically a 1-2 month delay from the time the potential buyer qualifies for a mortgage loan and closes on a house--i.e., it’s going to take a while for higher rates to fully trickle into sales activity. Last week, on a week-over-week basis, closed sales were down 10.4%. Pending sales were down about 2%. However, leasing activity rose (renting a home is the most comparable alternative to purchasing a home). Pending leases were up about 7%, while closed leases were up 5%. Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2023/08/DIH-8-29-23.pdf Last week's episode talking about 10-year Treasury: https://youtu.be/Kkdue5cQQuc Download the Buy Vs. Rent Index: https://www.abor.com/buyrentindex Access the One-Page Customizable Buy Vs. Rent Index Summary: https://www.abor.com/customizables Connect with us on socials: https://www.abor.com/socials Connect with Dr. Clare Losey on LinkedIn: https://www.linkedin.com/in/clare-losey