Housing and transportation costs have risen as well, although the housing costs have been moving upward for many months consecutively. Shelter costs have risen 5.5% in the last year, and prices for used cars and trucks rose 1.8% from May to April 2022.
With world events and the news, the S&P 500 has been in a bear market, meaning the prices of commodities are consistently trending downward. Last month, the Fed announced its largest hike in interest rates since 2000, increasing interest rates by 0.5 percentage points, and economists are speculating the Fed may move to increase the pace of rises.
On top of inflation affecting many parts of the economy, there are more areas that also affect the housing market, like the job market. The Austin business scene specifically is a bright light amongst bad news.
A recession often brings concerns about the job market, however, Austin’s job market is persevering. As recently stated in the Austin Business Journal, Austin maintains its spot as non-farm employment in the Austin area grew by 6.7%, or about 77,400 jobs between May 2021 and May 2022. With over 6 million job seekers and 11 million job openings, there are actually more jobs available than job seekers.
In the ABJ article, Richard Moody, chief economist at Regions Financial Corp. relieved job market concerns further, citing the variety of industries hiring at various levels and for varied skill sets. Another factor is quit rates nationwide, which includes Austin. 41% of employees are planning to look for new jobs in the next six months.
As much as some sectors are stable, there are some challenges. A good place to look for trends is in venture capital funding, as it involves an investment in the future. According to recent Pitchbook data, VC investment in Austin totaled $870.24 million across 80 deals during Q2, down about 65% from approximately $2.51 billion across 129 deals during Q1, according to data from Q2 2022.