Austin and Phoenix have been soft real estate markets following Covid boom, says KBW's Jade Rahmani

June 10, 2026 - 01:22

Jade Rahmani, a managing director at Keefe, Bruyette & Woods, appeared on a recent financial program to discuss the current state of the housing market. According to Rahmani, cities like Austin and Phoenix have become the most notable examples of softening real estate markets following the intense boom that followed the pandemic.

Rahmani explained that these two metros, which saw some of the sharpest price increases during the Covid-era migration, are now experiencing a significant pullback. Factors such as rising interest rates, an influx of new housing supply, and a return to more normal migration patterns have cooled demand. Homebuilders in these regions are now offering more incentives and price cuts to move inventory, a stark contrast to the bidding wars of just a few years ago.

The analyst also touched on the broader implications for homebuilder stocks. While the sector has faced headwinds, Rahmani noted that many builders have strong balance sheets and are adjusting their strategies to the current environment. She pointed out that the long-term housing shortage in the United States remains a supportive factor, but the immediate outlook is tied to how quickly the Federal Reserve adjusts monetary policy. For now, the focus remains on markets like Austin and Phoenix as key indicators of where the national housing market is headed.