The Texas housing market is heading toward a significant price correction as inventory levels reach highs not seen in years, with Austin experiencing the most dramatic decline nationwide, according to real estate experts.
Inventory across Texas hit 123,000 listings in April 2025, a staggering 53 percent above normal levels, positioning the state as the fourth most oversupplied housing market in the nation according to Newsweek.
Migration Slowdown Impacts Demand
The correction stems largely from a significant decline in migration patterns. In 2022, Texas welcomed 222,100 new residents through domestic migration. By 2024, that number plummeted to 85,200 – a 62 percent drop, according to data from Nick Gerli, CEO of Reventure App.
“The Texas housing inventory increase is primarily fueled by three factors: a wave of resale of newly constructed homes, a decline in migration into the state and a growing number of locals being priced out of the market,” explains Gerli in an analysis shared with DNyuz.
Austin: Ground Zero for Correction
The state capital has experienced the most dramatic decline, with home values dropping nearly 20 percent from pandemic peaks. According to Newsweek, Austin’s for-sale inventory reached 10,387 homes in 2024, more than any time in the previous seven years…