Austin, Texas, once the undeniable champion of the pandemic housing frenzy, has dramatically shifted its gears, transforming from a seller’s dream into a genuine buyer’s market. This isn’t just a small change; it’s a complete turnaround where homes are now lingering on the market, prices have softened from their crazy highs, and for the first time in what feels like forever, ordinary folks have a real shot at snagging a piece of Austin without having to sell a kidney.
Austin Housing Market Transforms: From Bidding Wars to Buyer Bargains
I’ve been following the Austin real estate scene for years, and honestly, what we’re seeing now is a refreshing change from the wild days of just a couple of years ago. The days of back-to-back bidding wars and homes selling faster than you could say “Austin” are, thankfully, behind us. According to Realtor.com’s report, the national housing market is finally reaching a point of balance with five months of housing supply, a summer milestone we haven’t seen in nearly a decade. Austin is right there with it, and in some cases, even leading the charge in this comeback for buyers. It’s a stark reminder that the real estate market is always in motion, and Austin’s story is a perfect example of that pendulum swinging back.
The Boom That Changed Everything: How Austin Got So Hot
It’s hard to believe it now, but not too long ago, Austin was the place everyone wanted to be. The pandemic really kicked things into high gear. With so many people able to work from anywhere, they looked at pricey cities like New York and California and thought, “Why stay here when I can get more bang for my buck somewhere else?” Texas cities, and Austin in particular, became the shining beacon. Not only did Texas boast no state income tax (a huge plus!), but Austin also had a special sauce that other Texas cities couldn’t quite replicate.
Sure, other places have strong economies, often driven by oil, gas, or finance industry. But Austin had a thriving tech and startup scene, supercharged by the talent coming out of the University of Texas at Austin. Big names like Apple, Google, Meta, and Amazon were not just looking at Austin for its talent pool but also for its unique vibe. Beyond the jobs and the money, Austin offered this cool, quirky, creative spirit, amazing live music, and a food scene that was, frankly, legendary. It was a potent mix that drew people in like magnets.
From Rapid Expansion to a Welcome Cooling
This massive influx of well-paid workers and big companies meant Austin had to grow, and it grew fast. Homes were built, roads were widened, and everything was geared towards accommodating the ever-increasing population. The problem was, the building momentum, once started, kept going even as the pace of new residents started to slow down.
Right now, we’re seeing the results of that sustained growth meeting a more balanced demand. According to Realtor.com data, Austin now has about 7.1 months of inventory. To put that in perspective, a healthy market usually has between four to six months of supply. More than that, and you start leaning into a buyer’s market. This is up significantly from last year, and it means there are simply more homes available for people to choose from.
In fact, active listings in Austin are up 20.1% compared to this time last year. That’s a huge jump, and it means that homes are staying on the market longer. Buyers aren’t feeling the pressure to instantly decide; they can actually take their time, compare options, and negotiate. This increase in inventory is thanks to a combination of continued population growth (though at a saner pace) and all that new construction finally hitting the market.
Prices Are Coming Down: A Real Win for Buyers
This is the part that probably gets most potential buyers excited: prices are retreating. Since August 2022, Austin’s median list price has dropped by a solid 13.2%. More recently, the price per square foot is down 3.5% year over year. For anyone who was priced out during the boom, this is incredibly good news. It means those dreams of owning a home in Austin are starting to feel a lot more realistic again.
The affordability score for the Austin metro area has climbed. In June 2025, it reached 0.60, up from 0.51 a year prior. While the median listing price is still sitting around $499,000—a bit higher than the national median of $429,990—the trend is heading in the right direction. This improvement is fueled by those falling prices.
Even specific counties are seeing the effects. Travis County, the heart of Austin, saw its affordability jump significantly, helped by a 6.7% drop in listing prices. Williamson County also saw an improvement, with prices down 3.5%.
New construction is playing a massive role here. It’s not just adding to the housing supply; it’s actually making homes more affordable. In Austin, nearly a quarter ( 24.2%) of all homes for sale are newly built. What’s really interesting is that these new homes are currently listed at a 7.2% discount compared to existing homes. Nationally, new builds usually cost more, so this is a unique advantage Austin buyers can take.
The Luxury Market: Still Fancy, But a Little Cooler
Even the high-end market is showing signs of change, though in a more subtle way. The 90th percentile listing price in Austin is around $1.32 million, which is actually higher than the national benchmark. However, the number of million-dollar listings is down 1.7% year over year, which is a much slower pace than the national increase. Luxury homes are also taking a bit longer to sell, with a 4.4% increase in the median days on market compared to last year. You can still find impressive properties, especially in desirable ZIP codes like 78746 (Westlake Hills) and 78733 (Lake Austin), but even there, the fever pitch has cooled a little.
Hottest Neighborhoods and Shifting Trends
When we look at specific areas, ZIP 78739 (Circle C and Shady Hollow) was the hottest spot in the first half of 2025, with a median listing price of $829,450. Homes here still sold relatively quickly, about three weeks faster than the national average. On the flip side, areas like ZIP 78616 (Dale) saw less attention, and ZIP 76527 (Florence) had homes sitting on the market for an average of 133 days. What’s fascinating is how much buyer interest can vary, with some western ZIP codes seeing 39% above the national norm for property views, while some eastern areas were at just 12%.
Even Renters Have the Upper Hand
It’s not just buyers who are seeing positive changes; renters are too! As of July 2025, the median rent for apartments in Austin is $1,460. This is actually 5.3% lower than last year and significantly below the national median of $1,712. This makes renting a much more attractive option, especially since buying a starter home in Austin still costs about $1,683 more per month than renting.
Who’s Moving Where?
Data on online search behavior gives us an interesting glimpse into the move patterns. While 39.9% of people looking for homes in Austin are locals, a significant portion still comes from other parts of Texas (32%) and out-of-state (25.5%). Dallas is the top city generating interest, followed by Chicago and San Antonio. Interestingly, about 59% of Austin residents are searching for homes outside their metro area, with San Antonio, Dallas, and Houston being popular choices. Miami and Denver are also drawing attention from Austinites looking to move.
The Bottom Line: It’s an Excellent Time to Be a Buyer in Austin
After what felt like an endlesssellers’ market, Austin is finally offering buyers what they’ve been craving: leverage. With more homes available, prices moving in a more favorable direction, and affordability improving, it’s an opportune moment to revisit those Austin neighborhoods or home styles that might have seemed completely out of reach just a year or two ago. If you’ve been dreaming of Austin, now might just be your chance to make it happen.
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