Austin, TX Housing Market
AI-powered market intelligence for the Austin-Round Rock-San Marcos, TX metro area.
PropertyIQ Scores
Austin, TX Market Analysis
Market Overview
Austin’s PropertyIQ Score of 2 out of 100 indicates a weak market position in this dataset. The top score drivers are all pointing toward cooling: 12-month home value momentum of -3.49%, 3-month momentum of -2.31%, median days on market of 73 days, and 27.6% of listings with a price cut. These are not the characteristics of a market with strong demand or rising prices. Compared with state benchmarks, Austin’s median home value of $417,977 is well above the state average of $299,367, but the market is not being rewarded with positive price movement.
At the same time, Austin’s economic fundamentals are relatively solid. The unemployment rate of 4% is below the state average of 4.5%, and median household income of $100,431 is above the state’s $78,476. The rent index of $1,622 is also higher than the state average of $1,403. However, these strengths have not translated into housing market stability in this snapshot. Elevated inventory and price-cut activity suggest that even with above-average incomes, buyer demand is not absorbing supply quickly enough.
With 12,517 homes for sale and 73 days on market, Austin currently looks like a buyer-friendly market where negotiating power is shifting away from sellers. The 2/100 score reflects a market that is weak on momentum and market balance, even if its underlying income and employment metrics are stronger than the state.
Key Trends
One clear trend is negative price movement. Austin’s 12-month home value momentum is -3.49%, and the 3-month momentum is -2.31%. The dataset also lists a year-over-year home value change of $-10. While that dollar change is minimal as reported, the negative momentum percentages show that prices are moving down rather than up. This is a major reason the PropertyIQ Score is so low.
A second trend is elevated inventory. Homes for sale total 12,517, which is a large supply number in this dataset. Combined with a median of 73 days on market, it suggests that listings are sitting longer than would be expected in a balanced or strong market. The longer homes sit, the more likely sellers are to reduce prices.
A third trend is seller price cutting. At 27.6%, more than one in four listings has had a price cut. This is consistent with the negative momentum and longer days on market. It also gives buyers more room to negotiate, but it signals that sellers are adjusting to softer demand.
A fourth trend is affordability tension relative to the state. Austin’s median home value of $417,977 is roughly 40% higher than the state average of $299,367, while median household income of $100,431 is about 28% higher than the state’s $78,476. That means home prices in Austin are elevated relative to incomes by a wider margin than the state benchmark. The rent index is also higher in Austin at $1,622 versus $1,403, but the higher home values may limit the relative yield appeal for investors.
Who Is This Market For
This market is better suited to patient buyers and those with above-average incomes or longer time horizons. With a median home value of $417,977, Austin is not a low-cost entry point compared with the state median of $299,367. However, median household income of $100,431 suggests that many local households have more earning power than the state average. First-time buyers with strong incomes and secure employment may find opportunities, especially with 27.6% of listings showing price cuts and homes taking a median of 73 days to sell.
Move-up buyers could also benefit from increased inventory, but they may face longer marketing times when selling their current homes. For investors, the picture is mixed. The rent index of $1,622 is above the state average, but the median home value of $417,977 means the rental income relative to purchase price is less attractive than at the state level. Short-term flippers or anyone relying on quick appreciation would be fighting against the current negative momentum of -2.31% over three months and -3.49% over twelve months. Long-term rental investors or owner-occupants planning to stay for many years are better aligned with current conditions.
Outlook
The outlook for Austin remains cautious based on the available data. Negative home value momentum of -3.49% over 12 months and -2.31% over 3 months, along with 73 days on market and a 27.6% price-cut share, suggests that supply is still outpacing demand. With 12,517 homes for sale, sellers are likely to continue facing competition and potential price pressure. Positive factors such as a 4% unemployment rate and median household income of $100,431 provide some underlying economic support, but they have not been enough to improve the PropertyIQ Score of 2/100 in this snapshot. Population growth data is not available, so future demand from migration cannot be factored into this outlook. If current trends hold, Austin is likely to remain a soft, buyer-friendly market in the near term rather than one with rapid price recovery.
AI-generated analysis based on current market data. Last updated October 5, 2026.
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Austin, TX market data
Austin, TX Housing Market Overview
Austin, TX's median home value is $418K, down 3.5% over the past year. Homes here sell in a median 73 days. Its PropertyIQ Score of 2 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
The Austin, TX metropolitan area represents a distinct segment of TX's housing landscape. The PropertyIQ Score combines price momentum — how Zillow home values have trended over the past 3 and 12 months — with market-flow signals from Realtor.com that track how fast homes sell and how often sellers cut prices. The result is a single measure of how this market is positioned to outperform or lag its state over the next three years.
South Central housing markets are propelled by energy sector economics, corporate relocations, and rapid population growth. Texas metros in particular have seen explosive expansion, though affordability pressures are emerging in the fastest-growing areas. Within the South Central, Austin, TX's PropertyIQ Score of 2 runs below the South Central norm.
Texas continues to be one of America's top relocation destinations, with no state income tax and a business-friendly regulatory environment driving corporate headquarters relocations and population growth.
Each month, PropertyIQ updates its score for Austin, TX using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been negative, with home values down 3.5% over the past year.
Explore the interactive map to see how Austin, TX compares to neighboring metros, or view the full market dashboard for detailed analytics including time-series trends, score breakdowns, and AI-generated market reports.
Counties in the Austin, TX metro area
ZIP codes in the Austin, TX metro area
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Austin, TX a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Austin, TX currently scores 2, a very weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $418K, down 3.5% over the past year. So whether Austin, TX is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Austin, TX?
Austin, TX's PropertyIQ Score is 2, indicating very weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 2 places Austin, TX below its state benchmark.
Are home prices in Austin, TX rising or falling?
Home prices in Austin, TX are falling. Over the past year, the median home value declined 3.5%, reaching $418K. Over the latest three months, values slipped 2.3%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Austin, TX's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Austin, TX?
In Austin, TX, homes sell in a median of 73 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 28% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Austin, TX market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.