Americans are starting to make the Lone Star state feel more lonely. During the pandemic, Austin, Texas, was a hotspot due to ‘lax COVID restrictions, lower living costs, and tempting home prices — becoming the envy of sunshine-starved Californians and New Yorkers. Between 2019 and 2023, Austin’s rent prices rose 25.5%, while home prices skyrocketed by 55.6%. But as quickly as it boomed, its growth now appears to be slowing down.

• Since 2022, Austin’s rents and home prices have declined 7% and 11%, respectively, according to Apartment List and the Freddie Mac House Price Index.
• Last year, Redfin reported that more residents were looking to leave Austin than those looking to move in.

So what’s behind this exodus? Although Texas cities have represented nearly a quarter of the new jobs created in the Sun Belt during the pandemic, many tech transplants are now leaving Austin behind, citing cultural and political differences, city infrastructure, and better opportunities elsewhere. Some are even returning to offices in cities like San Francisco and New York, which might have locals breathing a sigh of relief as they head for the door.