Austin-Round Rock-Georgetown, TX Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Austin-Round Rock-Georgetown, TX, Federal Housing Finance Agency (FHFA) house price index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses with mortgages backed by Fannie Mae or Freddie Mac. The HPI covers the nine counties that make up the Austin metropolitan statistical area: Bastrop, Caldwell, Hays, Travis, Williamson, Blanco, Burnet, Llano, and Milam.

As of September 2020, the Austin HPI was at 241.3, up 7.0% from one year earlier and up 46.6% from its pre-recession peak in December 2005. Home prices in the Austin metro have been rising steadily for several years now and show no signs of slowing down anytime soon. The strong job market and population growth are key drivers of demand for housing in the area.

The median home price in the Austin metro was $334,000 in September 2020 – up 8.4% from one year earlier and up 50% from its pre-recession peak of $222,000 in December 2005. The median home price is now just over $100k higher than its previous peak set during the dotcom boom of 2000 ($231k). Inflation has been relatively low since 2000 so this represents a real increase in home prices of nearly 50%.

Home equity levels have also been rising steadily along with home prices. As of September 2020, the average homeowner had equity worth $176k – up 6% from one year earlier and up 54% from its pre-recession low point of $114k reached in March 2009. Homeowners with mortgage debt have seen their equity increase even more rapidly as their mortgage balances have declined due to principal payments and/or home value appreciation. As a result, the average homeowner with mortgage debt had equity worth $142k as of September 2020 – up 9% from one year earlier and up 67% from its pre-recession low point of just $85k reached in March 2009