Texas housing market oversupplied, real estate expert says

TEXAS (KXAN) — Texas' housing market is now oversupplied with available inventory, according to an analysis Monday from a real estate data expert.

Nick Gerli is the CEO of Reventure, a real estate data analytics resource. In a thread on social media Monday, he noted Texas' housing supply has reached its highest volume since 2017, with close to 116,000 active listings now compared to 98,000 available seven years ago.

Notable, the housing supply statewide has grown more than 260% since the lowest recent figures recorded during the coronavirus pandemic. Reventure data from 2021 found just shy of 49,000 active listings available at that time compared to the nearly 116,000 today, Gerli said.

His analysis determined Austin was the Texas city with the largest inventory surplus, at 42%. Dallas and San Antonio closely trailed, at 39% and 38%, respectively.

Similarly, the Austin Board of Realtors' mid-year report released in July also flagged a substantial growth in active home listings, up nearly 26% year over year. At the time, ABoR officials said this growth reflected the metro returning to an availability level last seen in 2011.

Prior to the pandemic, Austin's 2019 for-sale inventory levels hovered above 7,400 active listings; at its lowest in 2021, that number dropped down to over 3,600. In 2024, the number has more than rebounded past pre-pandemic levels, with more than 10,300 active listings as of October.

When reviewing the state-level data, Gerli attributed the uptick in listings to homebuilders and investors liquidating out of the market.

"Investors are having difficulty earning cash flow due to high [property] taxes and stagnating rents," he wrote. "Builders are needing to do big mark downs to sell houses, which is hurting the resale market."

Gerli's full data breakdown for Austin is available here.