Opendoor Technologies Inc. has released its annual list of the hottest ZIP codes in the country for home sales. And while one Austin suburb is in the Top 10, the region as a whole lagged its Texas peers in the rankings.
Kyle's 78640 ZIP code, which is the only ZIP for the city about 20 miles south of downtown Austin, ranked No. 10 on the list that came out Jan. 8. Texas dominated with two ZIP codes near Houston — Katy and Cypress — at the top of the rankings, and three others — in San Antonio, New Braunfels and Forney — coming in ahead of Kyle.
The Austin area has featured prominently on the list in the past. Leander's 78641 ZIP — which encompasses the western part of Leander, including much of the Balcones Canyonlands — ranked No. 13 in 2023, No. 9 in 2022 and No. 2 in 2021. But it fell out of the Top 20 this year.
The ranking is derived through analysis of data from multiple listings services on total homes that went into contract within 90 days in cities where Opendoor operates
Nick Boniakowski, Opendoor's head of agent partnerships, said that Austin-area ZIP codes continue to be popular for homeowners, though "we’ve seen them shift in ranking as homeowners favor neighborhoods with more reasonable prices and (that are) closer to the suburbs."
That's evident in the latest rankings, with ZIP codes near the top tending to be in fast-growing cities near metro hubs with plenty of new development, Boniakowski said. It's a good description for Kyle, which was the second-fastest growing city of its size in the country last year and is well-positioned along the I-35 corridor, making commuting easy for homeowners.
As it's grown, Kyle has had success mixing both small-town and big-city amenities. That includes prominent employers like Ascension Seton Hays, Tesla Inc., Amazon.com Inc., Costco Wholesale Corp. and FedEx Corp., as well as a wealth of new eating options, new neighborhoods, a massive multi-modal transportation path, big mixed-use developments and a focus on growing its downtown.
"Kyle is an exceptional place to live, work and thrive, offering a sense of overall safety for our community members and an acceptance of residents of all backgrounds," Kyle representatives said in a statement. "With excellent schools, thriving employment centers, and a focus on quality of life, Kyle continues to draw new residents and businesses alike."
Meanwhile, the latest ZIP code rankings underscore the continued housing changes taking place in the Austin area.
Austin’s housing inventory and active listings have steadily risen over the past year, according to the Austin Board of Realtors and Unlock MLS’ latest market report, a favorable development for homebuyers but not for sellers. In November, the Austin-Round Rock metro had 4.8 months of inventory, up by 1.1 months from November 2023, and active listings came in at 10,845, a 5.2% year-over-year increase.
In November, the median sales price for the entire metro was $435,000, a 2.4% increase year-over-year, and homes were sitting on the market for an average of 75 days.
In 2024, data from the U.S. Census Bureau indicated that the bulk of population growth in the Austin metro was underway in the suburbs, with about eight out of every 10 people added to the region during a previous 12-month period settling outside Travis County. Most newcomers come from other parts of Texas. Unsurprisingly, the bulk of the action has been in Williamson County, which added over 104,000 residents — the most of any county in the Austin metro — between 2020 and Jan. 1, 2024, according to estimates from the Texas Demographic Center.
Kent Redding, Unlock MLS and ABOR president for 2024, previously told the Austin Business Journal the local housing market is simply coming back into balance after the torrid pace of sales of the last several years.
“It’s important to remember where we’ve come from,” Redding said. “Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic. For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers."
Opendoor's Boniakowski described the overall 2024 housing market as challenging, with low inventory and high prices leading to reduced numbers of homebuyers, which he said has been evident in Austin. Still, Texas as a whole remained attractive due its torrid growth in population and job growth, he said.
Boniakowski's not expecting an immediate bounce-back in 2025, although he said there should be a gradual improvement.
Cody Baird and Kathryn Hardison contributed to this report.