Austin, December 27, 2025
In 2025, Austin’s housing market has seen a significant slowdown, with declining home values, reduced sales, and an increase in inventory. A staggering 89.5% of homes in the Austin metro area have lost value, averaging a 20.5% decline from pandemic-era highs. The market’s inventory rose by nearly 20%, providing buyers with more options amidst ongoing affordability challenges, as only 25% of residents can afford the median home price of $512,500. The outlook suggests a steady market with potential for modest price declines.
Austin’s Housing Market Experiences Cooling Trend in 2025
Austin’s housing market has experienced a notable slowdown in 2025, characterized by declining home values, reduced sales, and increased inventory.
Decline in Home Values
Over the past year, 89.5% of homes in the Austin-Round Rock-San Marcos metro area have lost value, marking the highest percentage since at least 2012. This decline averages 20.5% from the pandemic-era peak, the steepest among major U.S. metros. Additionally, 12.6% of Austin homes are now listed below their previous sale prices.
Reduced Sales and Increased Inventory
In the first half of 2025, the number of homes sold decreased by 6.4% to 15,015, reflecting economic uncertainty. However, inventory levels rose nearly 20% to 76,020 active listings, bringing months of inventory to 5.5, approaching the six-month threshold that signals a buyer’s market. This increase provides buyers with more options and negotiating power.
Affordability Challenges
Despite the cooling market, affordability remains a significant concern. In February 2025, the median home price was $512,500, a slight 0.49% decrease from the previous year. However, only about 25% of Austin residents can afford a home at this median price, highlighting ongoing affordability issues.
Market Outlook
Looking ahead, the market is expected to remain steady, with potential for modest price declines in early 2026. Mortgage rates, currently around 6%, may continue to dip, further influencing buyer behavior. The increased inventory and cooling prices present opportunities for buyers, while sellers may need to adjust expectations to remain competitive.
Frequently Asked Questions (FAQ)
What is the current state of Austin’s housing market?
Austin’s housing market has experienced a notable slowdown in 2025, characterized by declining home values, reduced sales, and increased inventory.
How much have home values declined in Austin over the past year?
Over the past year, 89.5% of homes in the Austin-Round Rock-San Marcos metro area have lost value, marking the highest percentage since at least 2012. This decline averages 20.5% from the pandemic-era peak, the steepest among major U.S. metros. Additionally, 12.6% of Austin homes are now listed below their previous sale prices.
What is the current inventory level in Austin’s housing market?
In the first half of 2025, inventory levels rose nearly 20% to 76,020 active listings, bringing months of inventory to 5.5, approaching the six-month threshold that signals a buyer’s market. This increase provides buyers with more options and negotiating power.
How affordable is the housing market in Austin?
Despite the cooling market, affordability remains a significant concern. In February 2025, the median home price was $512,500, a slight 0.49% decrease from the previous year. However, only about 25% of Austin residents can afford a home at this median price, highlighting ongoing affordability issues.
What is the outlook for Austin’s housing market in 2026?
Looking ahead, the market is expected to remain steady, with potential for modest price declines in early 2026. Mortgage rates, currently around 6%, may continue to dip, further influencing buyer behavior. The increased inventory and cooling prices present opportunities for buyers, while sellers may need to adjust expectations to remain competitive.
Key Features of Austin’s Housing Market in 2025
| Feature | Details |
|---|---|
| Decline in Home Values | 89.5% of homes lost value; average decline of 20.5% from pandemic peak; 12.6% listed below previous sale prices. |
| Reduced Sales | 6.4% decrease in homes sold; 15,015 homes sold in first half of 2025. |
| Increased Inventory | 20% rise in active listings; 76,020 homes available; 5.5 months of inventory. |
| Affordability Concerns | Median home price at $512,500; only 25% of residents can afford this price. |
| Market Outlook | Steady market with potential for modest price declines in early 2026; mortgage rates around 6% may dip further. |
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