Austin’s Luxury Market Fueled by Influx of Wealthy Homebuyers

Austin’s housing market continues to attract buyers with deep pockets.

In 2023, buyers represented by Compass real estate agents purchased three homes priced at $10 million or higher in the Austin area, totalling $34.4 million, the Austin American-Statesman reported, citing Compass.

Eight-figure, or “ultra luxury,” transactions were nearly unheard of in Austin until a few years ago. In 2019 and 2020, Compass recorded no such sales. The market broke open in 2021 and 2022, resulting in four transactions above the $10 million threshold each year.

Notably, Compass’ report excludes private off-market sales, which often have significantly higher asking prices than publicly marketed properties in the Multiple Listing Service database.

The highest-priced sale in 2023, for which a Compass agent represented the seller, reached $10.05 million in the West Lake Hills area. Jenny Walker had the listing.

Meanwhile, the highest-priced sale with a Compass agent representing the buyer involved a Spicewood home in western Travis County. Although the exact sale price was undisclosed, the property, represented by Damon Brown, was last listed at $7.75 million.

Beth Drewett, another Compass agent, highlighted the “pent-up demand” that’s projected to fuel Austin’s luxury market this year.

“In 2024, Austin will remain a magnet for diverse ultra-luxury buyers — tech entrepreneurs, entertainment elites and investors in pursuit of exclusivity,” Drewett told the outlet. “Their attraction stems from the city’s vibrant culture, strong economy and a lifestyle blending urban sophistication with nature.”

Brown attributed the city’s thriving ultra-luxury market to the sustained influx of high-net-worth, out-of-state buyers attracted to the Austin lifestyle. Despite the exclusion of off-market deals, “Austin’s allure as a haven for privacy and luxury living is driving the continued success of its off-market real estate sector,” he said.

Looking ahead, Walker expressed optimism following Compass’ acquisition of Realty Austin, foreseeing enhanced opportunities for affluent buyers and sellers in 2024.

—Quinn Donoghue