OHA Market Update Series - March 13, 2025
National: Starter homes are making a comeback, offering first-time buyers a chance to break into homeownership despite rising costs and competition. With inventory improving, now is the time to set a budget, get pre-approved, and work with a knowledgeable agent to find the perfect home.
Local: South Austin is getting a major upgrade with the Bergstrom Spur Trail, a 6.5-mile path transforming an old Union Pacific rail line into a vibrant east-west connection for walkers, bikers, and commuters. Set for full completion by 2027, this project will link neighborhoods, parks, and transit hubs—making it easier than ever to explore the city without a car!
Intrigued? Keep reading. (4 minute read)
National Real Estate Update
Housing Trends, Interest Rates, and Market Forecasts
Why Starter Homes Are Making a Comeback and How to Snag One
Starter homes have been hard to come by in recent years, but the good news is that they’re making a comeback. While home values, competition, and interest rates have made it tough for first-time buyers, inventory is rebounding, and more opportunities are opening up. If you've been waiting on the sidelines, now could be the perfect time to start your home search.
A starter home is typically a smaller, more affordable house that helps buyers get their foot in the door of homeownership. These homes used to be mass-produced, but rising costs and development challenges have made them rarer. However, with the right strategy, first-time buyers can still find great options.
Why Are Starter Homes Harder to Find?
Several factors have contributed to the decline in starter homes:
Rising Land and Construction Costs – The price of land has skyrocketed, and updating infrastructure in older areas can be expensive.
Focus on Larger Homes – Builders prioritize larger, more profitable homes over smaller ones.
Tariffs on Building Materials – Higher costs for lumber, steel, and aluminum can drive up prices.
Despite these challenges, starter home inventory has nearly fully recovered to pre-pandemic levels, and there are still ways to find one that fits your needs.
How to Find a Starter Home in Today’s Market
✅ Step 1: Set a Realistic Budget – Before you start looking, determine how much home you can afford. Use an online mortgage calculator to estimate payments.
✅ Step 2: Get Pre-Approved – A mortgage pre-approval strengthens your offer and gives you an edge in a competitive market.
✅ Step 3: Search Smart – Use online filters to focus on homes in your price range with the right features. Set up alerts for new listings.
✅ Step 4: Work With an Experienced Agent – A great agent knows the local market and can help you find hidden gems before they’re gone.
OHA’s HOT TAKE:
Buying a home isn't just about finding a place to live—it's an investment in your future. Homeownership builds equity, provides stability, and helps you create wealth over time. Millennials and Gen Z are now the largest groups of buyers, and the demand for affordable homes is growing.
If you’re ready to start your search, don’t wait on the sidelines—the right home could be out there for you. Reach out to a real estate expert today and take the first step toward homeownership!
Austin Area Real Estate & Community Update:
Market Trends, Local News, and Neighborhood Insights
Bergstrom Spur Trail: South Austin’s Newest Connection for Walkers, Bikers & Commuters
Bergstrom Spur Trail
Big news for South Austin! 🚴♂️🏃♀️ The city just broke ground on the Bergstrom Spur Trail, a long-awaited 6.5-mile east-west path that’s turning an old Union Pacific rail line into a brand-new way to explore the city. This trail will connect Vinson Drive to East Riverside and US 183, linking up neighborhoods, parks, and transit hubs—including CapMetro routes and even a direct path to the airport! With roots dating back to WWII, this historic corridor is getting a fresh start, thanks to $29 million in funding from mobility bonds.
OHA’s HOT TAKE:
South Austin has long needed better east-west connections for pedestrians and cyclists, and this trail fills a major gap in our city’s infrastructure. It’ll make it easier to commute, get outside, and explore without needing a car. Plus, as the area continues to grow, projects like this help keep Austin connected and accessible for everyone.
Phase one is already underway near St. Elmo Elementary, and the full trail is set to be completed by late 2027.
🚧 Want to stay updated on Austin’s biggest projects? Let’s chat about what’s coming to your neighborhood and how it might impact the housing market! Shoot me a message or comment below! 🏡🔥
Jennifer Carey
Realtor and Agent Success Manager at Open House Austin, real estate investor, and renovation enthusiast with Wimberley Airbnbs. She loves mid-century modern design, hiking Austin with her dogs, yoga, and exploring creative hobbies like painting, pottery, and piano. 🎶✨
