2024 Housing Inventory Growth: An Overview

The Texas real estate market in 2024 is seeing a notable increase in both single-family and multifamily housing deliveries. This marks a positive shift for buyers who have faced tight inventory and rising prices over the past few years. However, despite these improvements, inventory levels still remain below historical averages, particularly in highly competitive urban markets such as Austin and Houston.

Inventory Growth and Rising 2024

Single-Family and Multifamily Home Deliveries

According to data from the Texas Real Estate Research Center, 2024 has brought significant growth in housing inventory, driven by increased construction activities. The state’s top metro areas, including Dallas-Fort Worth, Houston, Austin, and San Antonio, are leading the charge in new home construction. This growth is bringing the housing supply closer to pre-pandemic levels​.

Single-family homes: After a drop in 2023, single-family home deliveries in 2024 are projected to increase by nearly 4%, with the bulk of new constructions happening in suburban areas​.

Multifamily housing: Multifamily units are also experiencing growth, but at a slower pace compared to the previous years. With over 80,000 units delivered statewide, the multifamily market is stabilizing, but urban centers like Houston and Austin are still seeing heavy demand​.

Why Inventory Growth Matters for Buyers

For buyers, the increase in new housing stock is good news, as it can alleviate some of the upward pressure on prices. But while more homes are hitting the market, the pace of growth is still not enough to fully meet the high demand, particularly in Texas’ hottest markets like Austin and Houston.

In Houston, the three-month average for home prices in August 2024 stood at $402,741, a slight decrease from earlier in the year, indicating a temporary stabilization of prices​.

In Austin, competition remains fierce with homes continuing to sell near their list price, reflecting persistent demand in this tech-driven city.

Inventory Levels vs. Historical Averages

Despite the increase in housing deliveries, overall inventory remains below historical averages, particularly in the most competitive urban areas. For example:

In Austin, housing supply has increased but still trails behind the demand fueled by job growth and population inflows​.

In Houston, the active listing rate has improved, yet inventory remains tight due to continuous migration and economic expansion.

Market Competition in Austin and Houston

Even with the increase in supply, competition for homes remains high. Cities like Austin and Houston continue to experience high demand due to their strong job markets, booming tech sectors, and influx of new residents. Both cities have seen a surge in millennial homebuyers, further intensifying competition.

Austin's Market: In Austin, the rapid growth in tech jobs and population has kept the housing market competitive, with many homes selling quickly and often above the asking price.

Houston's Market: Houston, while more affordable than Austin, is also facing a housing crunch due to its robust economy and job opportunities, particularly in the energy sector.

What This Means for Buyers in 2024

If you’re looking to buy a home in 2024, this increase in inventory presents opportunities, but you need to act quickly in competitive markets. While some areas may experience slight price drops or stabilization, the general outlook suggests that housing demand will remain strong through the year, particularly in urban centers.

Key Takeaways:

Inventory Growth: 2024 is seeing notable increases in both single-family and multifamily housing deliveries across Texas.

Competitive Markets: Despite this growth, competition for homes in major cities like Austin and Houston remains high.

Prices: Buyers should expect prices to stabilize slightly but remain elevated in high-demand urban areas due to ongoing demand.