According to MONEY Magazine, the median home price in Austin is higher than Houston's.

Question

Is Austin's median home price higher than Houston's because Austin is growing more than Houston, or because Austin is somewhat landlocked by the hills, thus limiting the space available for development?

Answer 1

Austin is just plain expensive compared to other cities in Texas.  I don't know the exact reasoning as to why....maybe something to do with the landlocked like you suggested....but regardless rent is even more expensive than most places in Texas for an average apartment.  It is definitely not about the growth, Houston is constantly growing but the prices aren't going up.  Probably something to do with the hilly land, type of materials being used, proximity to lakes, etc...

Answer 2

Because more people want to live in Austin and the housing supply is somewhat limited (ie, high demand raises the prices).  Houston has a lot more sprawl, thus more cheap housing.  

Answer 3

It is because you have a lot more restrictions on building than Houston. Houston is growing a lot faster than Austin.

Answer 4

It is because we are better than Houston.