T
he Texas housing market has cooled significantly since its pandemic-era boom. Cities like Austin, once considered boomtowns, are experiencing declining home prices and fewer people moving in. Some attribute this shift to rising costs of living and housing expenses, which have deterred potential residents.

    Peter Hoholick, a native Californian who moved to Austin in 2021, is one example of someone who soured on the state. He found the weather unbearable and the cost of living comparable to California's, with lower pay. The overturning of Roe v. Wade was the final straw, prompting him to return to California.

    Real estate experts and agents in Texas point to increased costs as a primary reason for the decline in interest. The state's housing market boomed during the pandemic, but prices have since fallen around 7% from their highs in mid-2022. In some areas, homes are taking months to sell, with sellers forced to slash prices by up to 30%.

    The shift in attitudes is reflected in migration and housing data. While Texas gained 668,000 new residents between 2021 and 2022, it also lost nearly half a million people, with 494,077 moving out of state that year. Cities like Dallas have seen population declines, while Austin has fallen from the top 10 most populous cities in the US.

    Realtors report a significant decrease in demand for homes, leading to price drops and slower sales. In some cases, sellers are being forced to reduce prices by 20-30%. The decline is an outlier compared to the broader US housing market, which continues to see record-high prices.

    The affordability of living in Texas has decreased due to rising home insurance rates and a weakening job market. Consumer prices have risen 25% over the last five years, and job postings based in Texas have dropped 28% from their highs in 2021. Many residents, like Samuel Cobb, are struggling to afford basic necessities, let alone save money.

    While some attribute the decline in interest to extreme heat and politics, experts say these factors are minor compared to economic growth and housing affordability. The Texas housing market may be approaching a bottom, but it's uncertain whether it will pick up again.