Is there a “housing bubble” in Austin? Was there a “bubble” to be burst in Austin? Not really. Yes, home prices shot up during the pandemic with so many people being sent to work from home and workers realizing they could work from anywhere, but that is just supply and demand. As demand increases, prices will go up. Add in scarcity, prices will remain high. Now, with the suburbs rapidly growing and builders trying to keep up with demand the prices are kind of flat. A local economist with Independence Title said that if all of the area-wide building permits come to fruition the Austin MSA will still be 10,000 homes behind in the next 10 years. So, is it supply and demand or a bubble? Pretty sure it’s basic economics, supply and demand.