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<h2>Real Estate Experts</h2>Pellentesque consectetur, nulla et sagittis tempor, risus magna faucibus odio, in aliquet elit orci ac urna. Duis dapibus arcu quis nisi porta, ac finibus nisi accumsan. Praesent accumsan augue quis nisi pretium volutpat. Fusce enim tortor, consectetur ut ligula eu, pellentesque blandit lacus. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia curae.

Austin Housing Market April 2025: Inventory Hits Highest Level in 10 Years : On April 11, 2025, the Austin-area housing market recorded a significant increase in supply, with the months of inventory rising to 5.57, the highest level for April in over ten years. This figure reflects the amount of time it would take to sell all active listings at the current pace of sales, assuming no new listings are added. The increase in inventory signals a shift in market dynamics, as buyers are presented with more options and sellers face growing competition.Comparing this to recent years, the growth is notable. Just four years ago, in April 2021, the months of inventory was only 0.81. Since then, the market has steadily moved away from the record-low inventory levels brought on by pandemic-era demand and limited supply. The April 2025 figure represents a 17.1% increase from April 2024, when the months of inventory stood at 4.76. This also marks a 152.9% increase from April 2022, when inventory was 2.2 months.The long-term historical perspective shows how rare this level of supply has been in the region. Between 2015 and 2019, April inventory ranged between 2.7 and 4.1 months, suggesting that the 2025 value is not only the highest in over a decade but well above the pre-pandemic norm. During the 2020 to 2022 boom, inventory dropped sharply—falling below 1.0 month in 2021. Since then, as buyer urgency cooled and more homes entered the market, inventory levels began returning to a more balanced state. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250411071359.png" alt="" width="" height="" style=""></figure></div>​ This trend is supported by broader data from the residential inventory report. In April 2025, the number of active residential listings in the Austin-area MLS reached 15,234, up from 13,951 in April 2024, representing a 9.2% year-over-year increase. Meanwhile, the number of new listings surged by 17.7%, totaling 7,094 in April. Despite this growth in supply, buyer activity appears to be lagging. Pending sales decreased by 3.9% year-over-year, and total sales fell 4.2% compared to April 2024.These patterns directly influence the months of inventory calculation, which depends on both supply (active listings) and demand (sales). The slower rate of pending and closed sales means more homes remain on the market longer, contributing to the elevated inventory levels. Additionally, the gap between active and pending listings grew to 10,452, up from 8,977 the previous year, showing further slack in buyer demand relative to supply.The City of Austin reflects a similar trend, with 5.80 months of inventory in April 2025—a 14.5% increase from April 2024. This city-specific figure slightly exceeds the broader MLS figure, indicating that inventory is building even more quickly within Austin city limits.From a market perspective, an inventory level of 5 to 6 months is traditionally viewed as balanced—not clearly favoring either buyers or sellers. However, given how far the Austin market had leaned in favor of sellers over the last several years, the current level of supply is a clear departure from previous conditions. With more homes available and fewer buyers submitting offers, sellers may need to adjust expectations on pricing, negotiations, and time on market.In summary, April 2025 marks a pivotal point in the Austin housing cycle. The increase in months of inventory—from both a short-term and long-term perspective—suggests the market is entering a new phase, where supply is rising faster than demand. This trend will likely influence pricing behavior, marketing strategies, and transaction timelines throughout the remainder of the year.

In April 2025, Austin's housing market experiences a notable increase in inventory, reaching a 10-year high. Explore the latest data on active listings, pricing trends, and market dynamics to understand what this means for buyers and sellers.​

Austin Housing Market Update: April 2025 Inventory Reaches 10-Year High

Understanding the Austin Housing Market with the New Listing to Pending Ratio :&nbsp;The <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> is a valuable metric for understanding how well the housing market is absorbing new inventory. This ratio is calculated by dividing the number of new and back-on-market listings by the number of properties that go under contract, including those marked active under contract or pending. A ratio of 1.0 represents perfect balance, meaning the number of homes entering the market equals the number of homes going under contract. When the ratio falls below 1.0, it indicates that more homes are being listed than sold, causing inventory to rise. A ratio above 1.0 signals that demand is outpacing supply, which often leads to tighter inventory and upward pressure on prices. From 2000 to 2011, Austin’s housing market mostly operated below this equilibrium. In 2001, the average annual ratio was just 0.58, with some months falling as low as 0.45. Between 2008 and 2011, the ratio remained in the 0.63 to 0.77 range, reflecting sluggish demand during the post-recession recovery. However, as the market stabilized, the ratio began to climb. By 2012, the annual average reached 0.91, and in the years that followed, it regularly exceeded the 1.0 benchmark. Between 2013 and 2021, the market was highly competitive, with annual averages ranging from 0.94 to as high as 1.12, including a peak monthly ratio of 1.34 in December 2020. These numbers reflected a seller’s market driven by low interest rates and rising buyer demand. The shift began in 2022. Although the year started strong with a January ratio of 1.32, the market slowed quickly. By June 2022, the ratio dropped to 0.58, and the annual average fell to 0.87. The trend continued into 2023, with a further decline in market absorption. The average monthly ratio in 2023 was 0.84, suggesting a more balanced—but still softening—market. This trend persisted into 2024, with the average falling again to 0.80, and monthly ratios often hovering in the 0.70 range. So far in 2025, the absorption rate has declined significantly. The ratio fell to 0.68 in March and dropped further to 0.42 in April, matching the lowest monthly ratio observed in over two decades. This shift is a key signal: more homes are being listed than are going under contract. When this pattern continues over time, it typically leads to an increase in inventory levels, longer days on market, and greater pricing pressure on sellers. Historically, a sustained ratio under 0.5 indicates a very soft absorption market, which could signal growing supply and decreasing urgency among buyers.<div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250411075353.png" alt="" width="" height="" style=""></figure></div>​ This ratio is not only a reflection of market behavior but also a forward-looking indicator. Rising ratios signal stronger demand and potential price growth. Falling ratios indicate that the market is cooling, and inventory may begin to rise. By consistently monitoring this ratio, real estate professionals and clients alike can gain valuable insight into the current market cycle and anticipate how conditions may change in the months ahead. What is the <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> in real estate?The <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> measures how many new listings are entering the market compared to how many homes go under contract. A ratio of 1.0 suggests a balanced market where every new listing is met by a sale.Why does a low New Listing to Pending Ratio matter?A low ratio means that more homes are being listed than are selling, which increases inventory and may signal a slowing market. It can lead to longer days on market and potential price reductions.What is a good New Listing to Pending Ratio for a balanced market?A ratio close to 1.0 indicates balance. When it drops below 0.8, it suggests weakening demand. A ratio under 0.5 generally signals a very soft market with growing inventory levels.

Explore Austin's housing market through the New Listing to Pending Ratio, a powerful indicator of inventory absorption. See data trends from 2000 to 2025.

Austin Housing Market: New Listing to Pending Ratio Trends (2000–2025)

Is Austin a Buyers’ Market in 2025? Zip Codes Like 78701 Say Yes Is Austin a buyers’ market in 2025? It’s a question that doesn’t have a one-size-fits-all answer—it depends on where you’re looking. A detailed report from Team Price Real Estate, dated April 10, 2025, breaks down 75 zip codes in the Austin area, showing how market conditions shift from city to city and even neighborhood to neighborhood within Austin itself. The key metric here is "Months of Inventory" (MOI), which measures how long it would take to sell all current homes if no new ones were listed. The report sorts these zip codes into sellers’ markets with less than 4.9 months, neutral markets with 5 to 6.9 months, and buyers’ markets with over 7 months. Let’s dive into what this data reveals, especially in zip codes like 78701, 78704, and 78746, where buyers might find some serious opportunities. Across all 75 zip codes, the report shows 33 areas, or 44%, are sellers’ markets with less than 4.9 months of inventory. Another 21 zip codes, or 28%, fall into the neutral range with 5 to 6.9 months, while 21 more, also 28%, tip toward buyers with over 7 months. The median MOI is 5.18 months, and the average is 6.04 months, suggesting the Austin area overall is near a balanced market but leans slightly toward buyers. Within Austin’s 42 zip codes (those starting with 787), 12 have an MOI over 7, proving that even inside the city, the market can vary wildly from one spot to the next. Zip code 78701, smack in downtown Austin, is a clear buyers’ market with an MOI of 11.00 months. It has 229 active listings, averaging $1,185,773 and a median price of $749,000. Homes here sit for a median of 62 days, and 38.4% of listings have dropped prices by an average of $136,000. That’s a sign sellers are feeling the pressure. Just south of downtown, 78704 also favors buyers with an MOI of 10.63 months across 388 listings. Homes average $1,290,606, with a median of $950,000 and 41 days on the market, and 41.5% have cut prices by $106,000 on average. Then there’s 78746, covering ritzy Westlake Hills, with an MOI of 9.43 months and 198 listings. The average price here is a hefty $3,336,813, with a median of $2,554,875, and homes linger for 46 days. About 35.9% of listings have slashed prices by $405,000 on average, showing buyers have leverage in this high-end area. Other Austin zip codes echo this buyers’ market trend. In 78702, East Austin, the MOI is 8.39 months with 235 listings, averaging $842,418 and a median of $725,000. Homes stay on the market for 50 days, and 50.6% have dropped by $64,000 on average. Zip code 78741, near Riverside, hits an MOI of 11.00 months with 106 listings, averaging $571,587 and a median of $399,995. Here, 52.8% of listings have cut prices by $52,000 after 43 days. These numbers paint a picture of neighborhoods where inventory is piling up, giving buyers more options and bargaining power, especially compared to tighter markets elsewhere in the city. Outside Austin, the diversity continues. In 78669 (Spicewood), the MOI is 11.00 months with 247 listings, averaging $1,341,771 and a median of $949,000. Homes sit for 62 days, and 44.5% have dropped by $97,000 on average. Similarly, 78645 (Lago Vista) shows an MOI of 11.00 months with 367 listings, averaging $736,502 and a median of $549,900, with 52.6% of listings cutting prices by $68,000 after 69 days. But flip to zip codes like 78727 in North Austin, where the MOI is just 2.00 months with 43 listings, averaging $498,340 and a median of $468,888. Homes move in 30 days, and 48.8% drop by only $21,000, showing sellers still hold the reins. Or check 78736, southwest of downtown, with an MOI of 2.36 months, 26 listings, and an average price of $1,533,907—42.3% of homes drop by $42,000 after 58 days, but it’s still a seller’s game. Price changes add more detail. In 78701, just 1.3% of listings went up by $25,000, while 60.3% held steady. In 78704, only 0.5% rose by $105,000, with 58% unchanged. In 78746, 1.5% increased by $29,000, but the big drops dominate. Beyond Austin, 78669 saw 2% of listings rise by $37,000 with 53.4% steady, and 78645 had 2.2% go up by $51,000 with 45.2% unchanged. These stats show sellers in buyers’ markets are more likely to lower prices, while sellers’ markets see smaller tweaks. For instance, in 78717 (3.50 MOI, $671,560 average), 42.9% dropped $32,000, and in 78725 (2.75 MOI, $337,648 average), 42.4% dropped $23,000—still competitive areas despite the cuts. This data proves Austin’s 2025 market isn’t uniform. Zip codes like 78701, 78704, 78746, 78702, and 78741, all with MOI over 7, say yes to a buyers’ market, with high inventory and notable price drops. But spots like 78727 (2.00 MOI), 78736 (2.36 MOI), and 78749 (3.04 MOI, $618,826 average, 50.6% dropping $33,000) scream sellers’ market, with homes selling fast and fewer concessions. The Austin area’s average MOI of 6.04 months sits in the middle, but these extremes show why zip codes matter. Whether you’re buying or selling, this April 2025 snapshot highlights how knowing your specific area—from downtown’s 78701 to Spicewood’s 78669—could be the key to your next move. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250410092529.png" alt="" width="" height="" style=""></figure></div> Q1: Is Austin a buyers’ market in 2025?A: It varies by zip code. The April 2025 Team Price Real Estate data shows an average MOI of 6.04 months across 75 Austin-area zip codes, near neutral but leaning toward buyers. Within Austin, 78701 (11.00 months) and 78704 (10.63 months) are buyers’ markets, while 78727 (2.00 months) and 78736 (2.36 months) favor sellers.Q2: Which Austin zip codes are best for buyers in 2025?A: Zip codes with over 7 months of inventory shine for buyers. In April 2025, top picks include 78701 (11.00 MOI, $1,185,773 average), 78704 (10.63 MOI, $1,290,606 average), 78746 (9.43 MOI, $3,336,813 average), 78702 (8.39 MOI, $842,418 average), and 78741 (11.00 MOI, $571,587 average), with drops like $405,000 in 78746.Q3: How do I know if a zip code is a buyers’ market?A: Look at Months of Inventory (MOI). The April 2025 data marks buyers’ markets as over 7 months. For example, 78701 has 11.00 months with 38.4% of listings dropping $136,000, while 78727’s 2.00 months and 48.8% dropping $21,000 show a sellers’ market. High MOI and price cuts mean buyer advantage. ​

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Is Austin a buyers’ market in 2025? Zip codes like 78701 (6.7 months inventory) and 78704 (6.6 months) say yes, with big price drops. Explore the Austin-area housing market’s diverse trends in this detailed 2025 update.

Is Austin a Buyers’ Market in 2025? Zip Codes Like 78701 Say Yes

Renting vs. Buying in Austin – What the Data Says About Your Options in 2025When people search “Is it better to rent or buy in Austin?” they’re looking for clear answers about one of Texas’s hottest housing markets. The decision depends on factors like how long you plan to stay, where you want to live, and what you can afford. To dig into this, we’ll use detailed numbers from the "<a href="https://teamprice.com/renting-vs-buying">Renting vs Buying Analysis</a>" and "<a href="https://teamprice.com/appreciation-year-over-year-city">Appreciation Year over Year</a>" reports by Team Price Real Estate, both updated daily (M-F). These reports cover everything from monthly costs to long-term home price trends, giving us a solid foundation to explore this question.Let’s start with the basics of cost. In 2025, the median monthly payment for owning a home in the Austin area, known as PITI (Principal, Interest, Taxes, and Insurance), sits at $3,331. Compare that to the median rent of $2,150, and you’re looking at a $1,181 difference every month. That gap shows up everywhere in the data. In the city of Austin itself, PITI averages $4,831 while rent is $2,198, leaving a $2,633 monthly difference. Even in smaller towns like Jarrell, PITI is $2,343 against a rent of $1,742, a $601 gap. Across 30 cities and 75 zip codes analyzed, not a single place has a PITI lower than its median rent. This means that if you’re just looking for a place to live for the next year, renting costs less upfront.Income plays a big role too. The data shows how much of your paycheck goes to housing. In Austin, with a median household income of $110,300, PITI takes up 52.6% of that income, while rent uses 23.9%. In San Marcos, where income is lower at $42,500, PITI eats up 82.3% compared to rent’s 33.2%. Even in a higher-income spot like Lakeway ($142,566), PITI is 53.8% of income versus rent’s 26.2%. Across the board, renting takes a smaller bite out of your budget, which matters if you’re planning short-term.But what if you’re thinking longer-term, like five years or more? That’s where home price growth comes into focus. The "Appreciation Year over Year" report tracks how much homes have gone up in value since 2000. In Austin, the average sold price jumped from $218,205 in 2000 to $755,043 in 2025, a 246% increase. That works out to a compound annual growth rate (CAGR) of 5.1% over 25 years. In Driftwood, prices soared from $314,821 to $1,307,043, a 315% rise and a 5.9% CAGR. Leander saw a 307% increase, from $129,266 to $526,284, with a 5.8% CAGR. Even in Kyle, a more affordable area, prices grew from $108,258 to $356,919, a 230% jump and 4.9% CAGR. These numbers show that homes in the Austin region have steadily climbed in value, building equity for owners over time.Looking at median sold prices tells a similar story. In Austin, the median went from $159,900 in 2000 to $556,000 in 2025, a 253% increase with a 5.2% CAGR. Driftwood’s median shot up from $252,500 to $1,200,000, a 375% rise and 6.4% CAGR. Cedar Creek hit a 304% increase, from $103,398 to $427,495, with a 5.7% CAGR. Even in San Marcos, where growth was slower, the median rose from $146,900 to $350,495, a 139% increase and 3.5% CAGR. This consistent growth over decades highlights how owning a home can pay off if you stay put for a while.The PITI-to-rent ratio adds another layer. Back in 2000, this ratio was 1.1, meaning PITI and rent were almost equal. By 2025, it’s up to 1.5 across the region, showing PITI has outpaced rent. In Austin, it’s 2.2 ($4,831 PITI vs. $2,198 rent), while in Driftwood, it’s 2.6 ($9,407 vs. $3,575). The ratio peaked at 1.7 in May 2022, suggesting some ups and downs over time. Over a five-year span, you might see this ratio shift, but the long-term trend of rising home values could still make buying worthwhile.Location makes a difference too. In high-cost areas like Driftwood, the PITI of $9,407 towers over the $3,575 rent, but the 6.4% CAGR signals big gains for owners. In Jarrell, PITI is $2,343 and rent is $1,742, a smaller gap, with a 4.0% CAGR that’s steady but less dramatic. Zip code data gets even more specific. In Austin’s 78703 zip code, PITI is $13,212 versus $2,892 rent, with a median sold price of $1,500,000 in 2025 (up from $312,500 in 2000, a 380% rise). In 78725, PITI is $2,205 and rent is $1,908, with a median sold price of $275,000 (164% growth since 2000). Your spot in the Austin area shapes both costs and potential returns.Income levels tie into this as well. In Driftwood, with a household income of $89,107, PITI takes 126.7% of income, making buying tough without extra savings. In Jarrell, income is $89,712, and PITI is 31.3%, more manageable. Across 75 zip codes, PITI often exceeds 30% of income—a common affordability benchmark—while rent rarely does. For example, in 78741 (income $54,422), PITI is 66.2% and rent is 28.1%. This gap shrinks in wealthier areas like 78733 (income $187,778), where PITI is 75.2% and rent is 23.3%, but renting still costs less upfront.The data also shows how costs have evolved. In 2007, PITI hit a low of 25.11% of income, per Page 5 of the "Renting vs Buying Analysis," while in April 2022, it spiked to 68.19%. Today’s $3,331 PITI versus $2,150 rent lands at a 24.14% income share for rent and about 37.5% for PITI (assuming a $106,692 median income derived from the $3,331 PITI at 37.5%). Over time, owning has gotten pricier relative to renting, but the equity from appreciation keeps it in the game for long-term planners.So, what does this all mean for Austin in 2025? If you’re staying for just a year, the numbers lean toward renting—lower monthly costs and less financial strain. But if you’re in for five years or more, the data points to buying, with home values growing at 4% to 6% annually across cities and zip codes. A $500,000 home at a 5.1% CAGR (Austin’s average) would hit $638,140 in five years and $814,628 in ten. Renting at $2,150 monthly totals $129,000 over five years with nothing to show for it. The choice depends on your timeline and where you land in this sprawling market. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250407060019.png" alt="" width="" height="" style=""></figure></div><div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250407055549.png" alt="" width="" height="" style=""></figure></div> 1. How much does it cost to rent vs. buy in Austin in 2025?In 2025, the median PITI for owning a home in the Austin area is $3,331 per month, while the median rent is $2,150, a $1,181 difference. In Austin city, PITI averages $4,831 and rent is $2,198. In Jarrell, it’s $2,343 PITI versus $1,742 rent. Across 30 cities and 75 zip codes, PITI always exceeds rent, per the "Renting vs Buying Analysis" from Team Price Real Estate.2. Are home prices in Austin still going up in 2025?Yes, home prices continue to rise. The "Appreciation Year over Year" data shows Austin’s average sold price grew from $218,205 in 2000 to $755,043 in 2025 (5.1% CAGR). Median sold prices hit $556,000 (5.2% CAGR). Driftwood’s median reached $1,200,000 (6.4% CAGR), while Leander’s average is $526,284 (5.8% CAGR). Growth varies by location but remains steady region-wide.3. Is renting cheaper than buying a house in Austin?For 2025, yes, renting is cheaper monthly. The median rent of $2,150 is $1,181 less than the $3,331 PITI. In Austin, rent ($2,198) is $2,633 below PITI ($4,831). Rent takes 24.14% of median income, while PITI takes about 37.5%, per the "Renting vs Buying Analysis." However, buying builds equity over time with appreciation rates of 4-6% annually. ​

Explore whether renting or buying in Austin is better in 2025 with detailed cost comparisons and home appreciation data. From $3,331 PITI to $2,150 rent, see what the numbers say for short- and long-term housing decisions

Should You Rent or Buy in Austin? 2025 Numbers Reveal the Answer

Real Estate Investment Opportunities in Austin: Uncovering Deals in a Shifting MarketThe Austin real estate market in April 2025 offers a wealth of data for investors seeking opportunities in a dynamic landscape. With a growing number of properties and zip codes showing promising returns, investors can use detailed metrics to identify potential deals. The <a href="https://teamprice.com/active-residential-listings">Austin-area Multiple Listing Service (MLS) reported 14,793 active listings</a> in April 2025, a 6.04% increase from 13,950 in April 2024. This rise in inventory, coupled with 5.39 months of inventory compared to 4.22 months the previous year, suggests a market with more options for buyers. The median active price across the Austin area reached $440,000, up 2.33% from $430,000, while the <a href="https://teamprice.com/market-cycle">median sold price</a> climbed to $429,990, a 1.25% increase from $424,700. Within the city of Austin, the median sold price hit $600,000, reflecting a 7.43% year-over-year growth from $558,495, highlighting the city’s strong demand.One key metric for investors is the <a href="https://teamprice.com/cap-rate">capitalization rate, or cap rate</a>, which measures the return on a property based on its net operating income (NOI) divided by its purchase price. NOI is calculated by subtracting total expenses, including property taxes and a 5% maintenance allowance, from gross annual rent. In March 2025, the Austin-area cap rate averaged 3.34%, but 17 out of 75 zip codes surpassed the 6-month Treasury Bill yield of 4.28%. This is the highest number of zip codes exceeding this benchmark in over four years. For example, zip code 78654 in Marble Falls posted a cap rate of 6.31%, with a median sold price of $352,500 and gross rent of $30,327 annually. Similarly, zip code 78724 in Austin achieved a 5.49% cap rate, with a median sold price of $312,500 and gross rent of $25,368. These figures indicate areas where rental income could outpace the returns of risk-free investments like Treasury Bills. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250407064004.png" alt="" width="" height="" style=""></figure></div>​ Another avenue for finding deals lies in properties priced below market norms. Across 30 tracked cities in the Austin area, 264 properties were listed below both the 10th <a href="https://teamprice.com/percentile-analysis">percentile for price and price per square foot</a>. In the city of Austin, where 4,439 homes were active, the 10th percentile price was $315,000, and the 10th percentile price per square foot was $229. Out of these, 102 properties fell below both thresholds, representing potential value buys. For instance, in Pflugerville (zip code 78660), the 50th percentile active price was $450,000 with a price per square foot of $207, but investors could target properties closer to the 10th percentile of $330,000 and $173 per square foot to maximize value. This approach allows investors to pinpoint homes that may be underpriced relative to the broader market. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250407064201.png" alt="" width="" height="" style=""></figure></div>​ Breaking down the market by zip code reveals further opportunities. Zip code 78725 in Austin, with a median sold price of $299,000 and a cap rate of 5.55%, stands out as a strong candidate for cash-flow-focused investors. Its gross rent of $23,170 and NOI of $16,605 suggest solid returns. In contrast, zip code 78747 in Austin, with a median sold price of $396,185 and a cap rate of 4.30%, offers a slightly higher entry point but still exceeds the Treasury Bill yield. These zip codes, among the 17 identified, provide a starting point for investors seeking properties with favorable rental yields. Meanwhile, areas like Jarrell (zip code 76537) with a cap rate of 4.58% and a median sold price of $277,000 demonstrate that lower-priced markets can also deliver competitive returns.Price trends over the past year offer additional context for deal hunters. In Austin, the 50th percentile sold price rose 7.4% from April 2024 to April 2025, reaching $600,000, while the 10th percentile price dipped slightly by 0.1% to $324,580. However, some nearby cities showed softer trends. Liberty Hill’s 50th percentile sold price fell 18.5% to $439,900, and Kyle’s dropped 7.9% to $323,500. These declines, combined with increased inventory, could signal opportunities for investors to negotiate better terms. For example, Leander (zip code 78641) had a 50th percentile active price of $549,000 but a sold price of $469,550, indicating potential room for offers below list prices.The percentile analysis also highlights disparities within zip codes. In Austin’s zip code 78702, the 50th percentile active price was $725,000 with a price per square foot of $525, but the 10th percentile was $400,000 and $400 per square foot. Investors targeting this lower tier could find properties significantly below the area’s median. Similarly, in Round Rock (zip code 78665), the 50th percentile active price was $466,958, while the 10th percentile was $335,000, suggesting deals exist for those willing to explore the lower end of the market. Across the board, the data shows that active listings often carry higher prices than recent sales, with Austin’s 78732 zip code showing a 73.2% premium at the 50th percentile for active ($1,277,500) versus sold ($737,500) prices.For investors focused on long-term strategy, understanding inventory dynamics is crucial. The Austin-area MLS reported a 27.61% increase in months of inventory, from 4.22 to 5.39, indicating a slower absorption rate. Within the city of Austin, months of inventory rose 11.52% to 5.65 from 5.06. This shift suggests a market tilting toward buyers, as properties stay listed longer. Zip code 78724, with 6.2 months of inventory, and 78654, with 10.3 months, reflect this trend, potentially giving investors leverage to negotiate. Conversely, areas like 78747, with 3.3 months, remain tighter, requiring a more aggressive approach to secure deals.The data underscores the importance of targeting specific metrics when investing in Austin. Whether focusing on high-cap-rate zip codes like 78616 in Dale (4.99%, median sold $315,000) or scouring for properties below the 10th percentile in cities like Georgetown (10th percentile $334,965, $181 per square foot), investors have multiple paths to uncover value. The combination of rising inventory, softening prices in certain areas, and a record number of zip codes offering cap rates above the Treasury Bill yield creates a fertile ground for strategic purchases. For those looking to dive deeper, a tailored analysis can further refine these opportunities.Investing in Austin’s real estate market requires a nuanced approach, but the numbers provide clear guideposts. By leveraging data on cap rates, percentiles, and inventory trends, investors can identify properties that align with their financial goals. Whether it’s a low-priced home in Elgin (zip code 78621, median sold $303,160, cap rate 4.13%) or a high-yield property in Marble Falls, the Austin area in April 2025 offers a range of possibilities for those willing to dig into the details. If you’re interested in exploring these opportunities, reach out to Team Price Real Estate for a detailed analysis. We can evaluate properties using metrics like the 1% Rule, Gross Rent Yield, Cap Rate, and Cash Flow Analysis to pinpoint the best deals in Austin’s evolving market.FAQ SectionWhat is a good cap rate for real estate investment in Austin?In March 2025, the average cap rate in the Austin area was 3.34%, but 17 out of 75 zip codes exceeded the 6-month Treasury Bill yield of 4.28%. A cap rate above 4.28%, such as 6.31% in zip code 78654 (Marble Falls) or 5.55% in 78725 (Austin), is generally considered strong for Austin, as it surpasses the risk-free return of Treasury Bills. Higher cap rates indicate better potential returns, but investors should also consider property condition and market trends.How can I find undervalued properties in Austin?Investors can target properties below the 10th percentile for both price and price per square foot. In April 2025, 264 properties across 30 Austin-area cities fell into this category. For example, in Austin, the 10th percentile price was $315,000 with a price per square foot of $229, and 102 homes met both criteria. Zip codes like 78724 (median sold $312,500) or 76537 (Jarrell, $277,000) offer lower entry points with cap rates above 4.28%, making them prime areas for value buys.Is now a good time to invest in Austin real estate?In April 2025, Austin’s real estate market showed 5.39 months of inventory, up 27.61% from 4.22 months in 2024, suggesting more choices for buyers. The city’s median sold price rose 7.43% to $600,000, but some areas like Liberty Hill saw an 18.5% drop to $439,900. With 17 zip codes offering cap rates above the 4.28% Treasury Bill yield, the highest in over four years, investors have opportunities to find high-yield properties, particularly in a market with growing inventory.

Discover prime real estate investment opportunities in Austin for 2025. Explore 17 zip codes with cap rates above 4.28%, 264 undervalued properties, and key market trends to find high-yield deals in a shifting market

Austin Real Estate Investing: How to Find High-Yield Deals in 2025

March 2025 Austin Real Estate Market: Sales Drop Signals Correction The real estate market in Austin and its surrounding areas has always been a hot topic, and the latest data from March 2025 offers a clear look at what’s happening. According to a detailed report from Team Price Real Estate, revised on April 6, 2025, a total of 2,479 properties were sold across the region that month. This number comes from a comprehensive dataset <a href="https://teamprice.com/sales-density-population-and-realtors">tracking sales density</a> over 25 years, showing how the market ebbs and flows. Compared to the historical March average of 2,368 properties since 2000, this year’s figure is up by 4.7%. However, it’s slightly below the historical median of 2,431 by 2%, hinting at a shift that’s worth digging into.<div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250406010317.png" alt="" width="" height="" style=""></figure></div>Breaking it down further, the report provides sales figures for 30 specific cities in the Austin region, totaling 2,380 properties sold in March 2025. Austin itself led the pack with 836 sales, making up over a third of the total. Georgetown followed with 242 sales, while smaller towns like Dale saw just 1 sale. This spread shows a market that’s heavily centered around big players like Austin, but it also reveals a bigger story when you look at the year-over-year numbers. From March 2024, when 2,799 properties were sold, to March 2025’s 2,479, there’s an 11.4% drop. This decline suggests a market correction might be underway, raising questions about why sales are going down.Zooming in even more, the report lists sales for 75 zip codes, adding up to 2,449 properties in March 2025. Zip code 78628 in Georgetown topped the list with 121 sales, while 78745 in Austin recorded 67. On the low end, zip code 78616 in Dale had just 1 sale. This zip code data aligns closely with the aggregate total of 2,479, differing by only 30 sales, or 1.2%. The city-specific total of 2,380 is 99 sales shy of the aggregate, a 4% gap that likely includes rural areas or smaller towns not listed. Across these zip codes, the average sales per area was 32.65, with a median of 23, showing a wide range from 1 to 121. This variability underscores how uneven the market correction is playing out.Looking at trends over time, the data paints a picture of a market that’s cooling off. That 11.4% drop from March 2024 to March 2025 is a big signal. In the city-specific data, 70% of the 30 cities—21 in total—saw fewer sales compared to the previous year. For example, Dale’s sales plummeted by 83%, from 6 to 1, while Del Valle jumped 190%, from 10 to 29. The average year-over-year change across these cities was a slight decline of 0.9%, but the majority trending downward aligns with the broader 11.4% drop. In the zip code data, 60% of the 75 areas—45 zip codes—also reported lower sales, with declines ranging from 4% in Hutto’s 78634 (97 to 93) to that same 83% in Dale’s 78616. Only 36% of zip codes saw gains, like Bertram’s 78605, which rose 200% from 5 to 15.So, why are <a href="https://teamprice.com/sales-density-population-and-realtors">sales going down in the Austin real estate market</a>? The data doesn’t give a direct answer, but it offers clues. One factor could be the contrast with the previous month. From February 2025’s 1,931 sales to March 2025’s 2,479, there’s a 28.4% increase—a seasonal spike that’s typical for spring. Historically, March sales often jump from February, but this year’s 2,479 is still below the peak years like 2020, when 3,215 properties sold, or 2021’s 3,531. This suggests the market might be correcting from those high points, settling into a lower baseline. In the city data, Austin’s 836 sales are robust, but smaller towns like Marble Falls (8 sales) and Smithville (7 sales) show weaker activity, possibly reflecting broader economic pressures or shifts in buyer interest.The Austin real estate market’s correction isn’t uniform. In the city-specific numbers, the standard deviation—a measure of how spread out the data is—comes in at 240, driven by Austin’s massive 836 sales against tiny figures like Dale’s 1. In the zip code data, the standard deviation is 32, with sales ranging from 1 to 121. This tighter spread suggests that while some areas are holding steady, others are feeling the downturn more sharply. For instance, Kyle’s zip code 78640 sold 109 properties, down 28% from 152 in March 2024, while Round Rock’s 78665 dropped 38% from 95 to 59. These declines hint at local factors, like inventory levels or pricing, that could be pushing sales lower.Drilling into the numbers, the average sales per city in March 2025 was 79.33, with a median of 60, meaning half the cities sold 60 or fewer properties. Georgetown’s 242 and Leander’s 113 stand out as strong performers, but 70% of cities losing ground year-over-year points to a widespread slowdown. The zip code data tells a similar story: an average of 32.65 sales per area, with a median of 23, and 16 being the most common number, appearing in five zip codes like 78705 and 78634. With 60% of zip codes down, the correction seems to hit harder in smaller or less central areas, while Austin and Georgetown hold more resilience.The question of market correction ties back to that 11.4% drop from March 2024. It’s a significant shift, especially after years of growth. In 2020, sales soared to 3,215, and in 2021, they hit 3,531—numbers that dwarf 2025’s 2,479. This decline could reflect a return to pre-pandemic norms, as the historical average of 2,368 shows March 2025 isn’t far off the long-term trend. Still, the drop from 2,799 to 2,479 in just one year is steep, and with 70% of cities and 60% of zip codes trending down, it’s clear the Austin real estate market is adjusting. Whether it’s due to higher interest rates, fewer buyers, or an oversupply of homes, the data signals a correction that’s reshaping the region’s housing landscape.Q1: Is the Austin real estate market crashing in 2025?A: The data from March 2025 doesn’t indicate a crash. Total sales reached 2,479 properties, down 11.4% from 2,799 in March 2024, but still 4.7% above the historical average of 2,368. This suggests a correction, not a collapse, as sales remain above long-term norms despite the decline.Q2: Why are home sales declining in Austin in 2025?A: The March 2025 data shows a 11.4% drop from the previous year, with 70% of 30 cities and 60% of 75 zip codes reporting lower sales. While the report doesn’t specify causes, the decline from 2024’s 2,799 to 2,479 could stem from factors like rising interest rates, reduced buyer demand, or an adjustment after peak years like 2020 (3,215 sales) and 2021 (3,531 sales).Q3: Which areas in Austin saw the biggest sales drops in March 2025?A: In the city data, Dale had the steepest decline, falling 83% from 6 to 1 sale. In the zip code data, 78616 (Dale) also dropped 83%, from 6 to 1. Other notable declines include Manor’s 78653 (down 47% from 90 to 48) and Round Rock’s 78665 (down 38% from 95 to 59), showing the correction’s uneven impact.

Explore the March 2025 Austin real estate market correction with detailed data showing a 11.4% sales drop. Learn why sales are declining across 75 zip codes and 30 cities, including Austin’s 836 sales and a region-wide total of 2,479

Austin Real Estate Market Correction: March 2025 Data Breakdown

Rent Prices Dropping in Austin – A Closer Look at the City’s Rental Market TrendsThe rental market in Austin has been a hot topic for years, with its reputation as a booming tech hub and vibrant cultural center driving demand sky-high. But recent data from Team Price Real Estate, last revised on March 26, 2025, shows something surprising: rent prices in the City of Austin are dropping. This shift stands out when compared to the broader six-county Austin-Round Rock-Georgetown metro area, which includes Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties. While the region as a whole is seeing changes, Austin itself is experiencing a noticeable decline in median leased prices, offering a fresh perspective on the city’s rental landscape. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250326112141.png" alt="" width="" height="" style=""></figure></div>​ Let’s start with the numbers for Austin. Back in 2022, the <a href="https://teamprice.com/appreciation-year-over-year-lease-city">median leased price for residential properties</a> in the city hit $2,350, reflecting a massive 17.5% jump from 2021’s $2,000. That surge wasn’t a fluke—it came during a period when Austin saw an influx of new residents, fueled by remote work trends and the city’s growing job market. Fast forward to 2023, and the median price stayed steady at $2,350, showing no year-over-year change. But by 2024, things started to shift. The median leased price dropped to $2,300, a 2.13% decrease from 2023. The decline continued into 2025, with the median price falling to $2,200 based on data through March 26, 2025—a 4.35% drop from 2024’s $2,300. This downward trend over two years marks a clear break from the rapid growth Austin renters had grown accustomed to.Zooming in on monthly data, the drop becomes even more evident. In March 2023, Austin’s median leased price was $2,250. By March 2024, it fell to $2,200, a 2.2% year-over-year decrease. The slide kept going, with September 2024 showing a steep 4.3% month-over-month drop from $2,275 in June to $2,190. By March 2025, the median price settled at $2,150, down 2.3% from March 2024’s $2,200. These monthly dips highlight a consistent softening in Austin’s rental market, especially when compared to the broader metro area.Now, let’s put this in context with the six-county region. The broader market includes bustling suburbs like Round Rock and Georgetown in Williamson County, growing towns like Kyle and San Marcos in Hays County, and quieter rural spots like Bastrop and Lockhart in Bastrop and Caldwell counties. Across this region, leasing activity remains strong—2024 saw 15,946 properties leased in Austin alone, part of a metro-wide trend of steady demand. However, the median price trends vary. While Austin’s median dropped from $2,350 in 2022 to $2,200 in 2025, suburban areas like Williamson County show more stability, with leased price-to-list ratios holding steady at 99.9% to 100.1% from March 2024 to March 2025. This suggests that while prices are softening in the city, demand in the suburbs is keeping prices closer to asking rates.Looking back further, Austin’s rental market tells a story of long-term growth with recent adjustments. From 2000, when the median leased price was just $1,095, to 2025’s $2,200 (partial year), the city has seen a compound annual growth rate of 2.88%. That’s a solid increase over 25 years, but the recent drops stand out. For instance, the 13.04% plunge from 2001 ($1,150) to 2002 ($1,000) was the biggest historical drop, tied to the dot-com bust. The current decline—2.13% in 2024 and 4.35% in 2025—is milder but notable, especially after the 2020–2022 boom when prices soared by 9.59% in 2021 and 17.5% in 2022. The broader metro area mirrors this cooling, with year-over-year decreases like Bastrop’s slight dip to a 98.5% leased price-to-list ratio in March 2025, but Austin’s urban core is feeling it most acutely.What about the volume of leases? In Austin, 2023 saw peaks like 3,223 leases in July, dropping to 1,929 in December—a typical seasonal pattern. In 2024, the peak hit 3,371 in July, with a low of 1,986 in December. By early 2025, January recorded 2,305 leases, a strong 18% year-over-year increase from 2024’s 1,953, though March 2025 dipped slightly to 2,120, down 1.3% from 2024’s 2,391. This shows that while prices are falling, people are still renting in Austin—just not at the premium rates of a few years ago. Across the six counties, leasing remains robust, with suburban areas like Cedar Park and Round Rock showing consistent activity, suggesting demand is spreading beyond the city limits.The leased price-to-list price ratio offers another angle. In Austin, this ratio stayed close to 100%—99.97% in March 2023, 99.85% in March 2024, and 99.61% in March 2025. This means properties are leasing very near their asking prices, with little room for negotiation. Compare that to nearby cities: San Marcos in Hays County hit 101.2% in June 2024, showing some premiums, while Bastrop dropped to 98.5% in March 2025, hinting at more flexibility. Austin’s tight ratio suggests a balanced market, but the falling median prices indicate that landlords are adjusting their asking rates downward to keep units filled.Breaking it down by zip code within Austin, the declines vary. In 78704, a trendy South Austin area, the median isn’t specified, but the leased price-to-list ratio went from 99.2% in March 2024 to 100.2% in March 2025, showing stability despite metro-wide drops. In 78701 (downtown), the ratio dipped to 98.0% in March 2025 from 98.7% in 2024, suggesting slight softening in the urban core. Meanwhile, 78753 in North Austin held steady at 99.7% in March 2025, down from 100.0% in 2024. These micro-trends show that while Austin’s rent drops are city-wide, some areas are more resilient than others.So, how does Austin stack up to the six-county metro area? The broader region saw similar cooling, with Travis County (home to Austin) driving much of the volume—15,946 leases in 2024 alone. But suburban counties like Williamson and Hays maintain higher leased price-to-list ratios, often at or above 100%, while rural Burnet County (e.g., Marble Falls) dipped to 99.3% in March 2025. Austin’s median price drop from $2,300 in 2024 to $2,200 in 2025 outpaces some rural areas like Lockhart, which held steady with ratios around 99.7% to 100.7%. This suggests that the city, as the metro’s economic heart, is more sensitive to market shifts, while outlying areas buffer the decline.In the end, the data paints a clear picture: rent prices in Austin are dropping, with a 2.13% decline in 2024 and a 4.35% fall in 2025 so far. That’s a shift from the heady days of 2022’s $2,350 median, bringing the city closer to its pre-boom levels. The broader six-county area shows a similar cooling trend, but Austin’s urban market stands out for its sharper adjustment. With leasing activity still strong and ratios near 100%, the market isn’t crashing—it’s recalibrating. For renters in Austin, that could mean a bit more breathing room as the city’s rental landscape evolves.Q1: Why are rent prices dropping in Austin in 2025?A: Based on data through March 26, 2025, rent prices in Austin are dropping due to a market correction following the 2020–2022 boom, when median prices jumped 17.5% in 2022 to $2,350. The median fell to $2,300 in 2024 (a 2.13% drop) and $2,200 in 2025 (a 4.35% drop), possibly due to increased housing supply, slower migration, or economic factors like higher interest rates. Leasing activity remains strong, with 2,120 properties leased in March 2025, suggesting demand persists but at lower price points.Q2: How much have rent prices dropped in Austin recently?A: In Austin, the median leased price dropped from $2,350 in 2022 to $2,300 in 2024, a 2.13% decrease. By March 2025, it fell further to $2,200, a 4.35% drop from 2024’s $2,300. Monthly data shows a 2.2% year-over-year decline from March 2023 ($2,250) to March 2024 ($2,200), and a 2.3% drop to March 2025 ($2,150), reflecting a consistent downward trend.Q3: Are rent prices dropping everywhere around Austin?A: Rent prices are softening across the six-county Austin-Round Rock-Georgetown metro area, but Austin’s drops are more pronounced. The city’s median fell 4.35% from 2024 to 2025, while suburban areas like Williamson County (e.g., Round Rock) maintain leased price-to-list ratios near 100%, showing stability. Rural Bastrop saw a dip to 98.5% in March 2025, and Burnet’s Marble Falls hit 99.3%, indicating milder declines outside the urban core. Additional Resources :&nbsp;<a href="https://teamprice.com/appreciation-year-over-year-lease-city">Rent Appreciation Report</a><a href="https://teamprice.com/appreciation-year-over-year-lease-city"></a><a href="https://teamprice.com/market-cycle-lease">Market Cycle Lease</a> ​

Discover why rent prices in Austin are dropping in 2025, with median leased prices falling 4.35% from 2024. Explore detailed data comparing Austin to the six-county metro area, revealing key trends in the city’s rental market

Rent Prices Dropping in Austin: What the Latest Data Reveals

Understanding the Austin Real Estate Market Through Team Price Real Estate’s Demand Momentum Index in 2025The Austin real estate market is always shifting, and one of the best ways to track those changes is through the <a href="https://teamprice.com/market-performance/demand-momentum-index">Demand Momentum Index</a>, or DMI, a proprietary tool created and updated daily by Team Price Real Estate at <a href="https://teamprice.com/market-performance/demand-momentum-index">https://teamprice.com/market-performance/demand-momentum-index</a>. This index measures how fast demand for homes—tracked by pending listings—grows compared to the supply of homes, shown through active listings, across six counties: Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet. As of March 25, 2025, Team Price Real Estate reports the DMI at -47%, meaning supply is growing much faster than demand, creating a buyer’s market. Let’s explore this data, see how it’s changed over time, and look at what it might mean for the rest of the year.The DMI, developed by Team Price Real Estate, acts like a market compass. When it climbs above 20%, demand outpaces supply, pointing to a seller’s market where homes sell quickly and prices often go up. When it falls below -20%, supply takes over, marking a buyer’s market where homes linger and buyers gain leverage. A DMI near zero shows a balanced market. Team Price Real Estate’s historical data shows big swings: in April 2021, the DMI hit 102%, reflecting a booming seller’s market during the pandemic. By January 2023, it dropped to -253%, signaling a huge oversupply after that boom faded. Today’s -47% fits into this history of ups and downs, giving us a clear picture of where the market stands.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250325113429.png" alt="" width="" height="" style=""></figure></div>Looking at the numbers year by year, Team Price Real Estate’s daily updates tell us a lot. In 2024, the DMI started at 1% in January, rose to 6% in February, and fell to -9% in March—keeping things close to balanced. In 2025, it’s a different story: January and February both hit -29%, and March dropped to -47%. That’s a decline of 30 points from January 2024 to 2025, 35 points from February, and 38 points from March. This steady slide toward a buyer’s market shows supply growing faster than demand across the six counties, a trend Team Price Real Estate has been tracking closely.A big piece of this puzzle is population change, especially in Travis County, the largest of the six counties. The U.S. Census Bureau reports that between July 2022 and July 2023, Travis County lost about 2,500 more people than it gained—the first net drop in 20 years. Lila Valencia, a demographer with the City of Austin, ties this to a slowdown in the tech industry, much like the 2002 dot-com crash. Since Travis County drives a lot of Austin’s housing demand, this loss weakens the market there. Meanwhile, surrounding counties like Williamson are growing, as Clare Losey from the Austin Board of Realtors points out. Team Price Real Estate’s DMI data shows this shift isn’t about people leaving the Austin area—it’s about movement within the region.Team Price Real Estate’s data goes back to 2006, showing how the market has evolved. In 2006, the DMI averaged 17%, peaking at 34% in February, a solid seller’s market. By 2008, it averaged -39%, hitting -57% in December during the housing crash. It rebounded in 2012, averaging 42% with a high of 48% in February, and soared in 2021 to an average of 28% and a peak of 102% in April. Then came 2022 and 2023, with averages of -12% and -79%, and lows of -194% in June 2022 and -253% in January 2023. In 2024, it averaged -14%, and for the first three months of 2025, it’s at -35%. These numbers from Team Price Real Estate reveal a market that swings with economic tides.What’s next for 2025? With the DMI at -47% in March, Team Price Real Estate’s data suggests the buyer’s market will stick around. After the -253% low in January 2023, it rose to -21% by June 2023, showing that big dips often ease up. Through June 2025, the DMI might stay between -20% and -40%, adjusting to higher supply and lower demand in Travis County. By late 2025, it could move toward -20% to 0% if demand grows in counties like Williamson, Bastrop, and Hays, following patterns in Team Price Real Estate’s records. Population shifts and economic factors like interest rates will play a role.Over the years, Team Price Real Estate’s DMI data shows a market full of cycles. The 2017 seller’s market peaked at 33% in March, followed by a balanced 2018 averaging 4%. The 2020–2021 boom hit 80% and 102%, then flipped to -60% in March 2022. Now, the -47% in 2025 reflects Travis County’s population drop and surrounding counties’ rise.&nbsp;Team Price Real Estate’s <a href="https://teamprice.com/market-performance/demand-momentum-index">Demand Momentum Index</a>, updated daily at https://teamprice.com/market-performance/demand-momentum-index, offers a clear view of the Austin real estate market. From 102% in 2021 to -47% in March 2025, it tracks how demand and supply move across Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties. Travis County’s population decline since 2022 tips the scale toward buyers, but growth in surrounding counties keeps the region active. This proprietary data shows a market in motion, and Team Price Real Estate gives us the numbers to understand it. Q1: Why is the Austin housing market slowing down in 2025?A: The Austin housing market is slowing in 2025, with Team Price Real Estate’s Demand Momentum Index at -47% in March, per data updated daily at https://teamprice.com/market-performance/demand-momentum-index. This shows supply outpacing demand, driven by Travis County’s net loss of 2,500 residents between July 2022 and July 2023, linked to a tech slowdown, though growth in surrounding counties keeps some demand alive.Q2: How does population change affect Austin’s real estate market?A: Population changes shape Austin’s real estate market, as seen in Team Price Real Estate’s DMI data. Travis County’s loss of 2,500 residents from July 2022 to July 2023 reduces demand, pushing the DMI to -47% in March 2025. Growth in counties like Williamson increases demand there, balancing some of the region’s decline, per daily updates at https://teamprice.com/market-performance/demand-momentum-index.Q3: What is the Demand Momentum Index, and how does it predict Austin’s housing trends?A: The Demand Momentum Index (DMI) is a proprietary tool from Team Price Real Estate, updated daily at https://teamprice.com/market-performance/demand-momentum-index. It compares demand (pending listings) to supply (active listings). Above 20% signals a seller’s market, below -20% a buyer’s market. At -47% in March 2025, it predicts a buyer’s market across six counties, based on Team Price Real Estate’s data.

Discover the Austin real estate market in 2025 through Team Price Real Estate’s proprietary Demand Momentum Index (DMI), updated daily at teamprice.com. See how Travis County’s population decline and surrounding counties’ growth create a buyer’s market, with data from 2006 to now

2025 Austin Housing Market: What Team Price Real Estate’s DMI Data Reveals

Understanding the Austin Real Estate Market Through the Pending-to-Supply Pressure IndexThe Austin real estate market has seen its share of ups and downs over the past two decades, and one metric that helps make sense of it all is the <a href="https://teamprice.com/market-performance/pending-to-supply-pressure-index">Pending-to-Supply Pressure Index</a>. This proprietary measure from Team Price Real Estate, calculated by dividing pending sales by active listings and multiplying by the number of homes sold, reveals how much pressure pending sales put on available inventory. It’s a unique way to see how quickly homes are moving off the market, and the data, updated through March 25, 2025, offers a clear picture of Austin’s housing trends over time.Think of the <a href="https://teamprice.com/market-performance/pending-to-supply-pressure-index">Pending-to-Supply Pressure Index</a> like a busy coffee shop. The number of customers waiting in line to order (pending sales) compared to the number of open seats (active listings) shows how crowded it’s getting. Then, multiply that by how many coffees are actually sold (homes sold), and you see how fast the shop’s supply of seats is running out. In March 2021, with an index of 9,442, it was like a packed shop with a long line and no seats left—tons of pressure. But in November 2008, with an index of 150, it was more like a quiet day with plenty of empty chairs and no rush, showing little strain on supply. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250325114732.png" alt="" width="" height="" style=""></figure></div>​ Looking back to 2005, the index averaged 737 for the year, with a high of 1,049 in August and a low of 360 in January. This was a relatively stable period, but fast forward to 2008, and the financial crisis hit hard. By November 2008, the index dropped to 150, showing almost no pressure on supply as buyers pulled back. Compare that to March 2021, when the index skyrocketed to 9,442, reflecting a frenzied seller’s market where demand far outstripped supply. That kind of swing shows just how much the market can shift, and this metric captures it all.The numbers tell a story of peaks and valleys. In 2019, the index hit 2,590 in May, averaging 1,840 for the year, a sign of robust demand. Then 2020 brought a wild ride, with December reaching 5,128 and an annual average of 3,363, fueled by pandemic-driven buying. The frenzy peaked in 2021 with that 9,442 in March and a yearly average of 5,427, but by 2022, things cooled off—May dropped to 2,939, and November hit 533, averaging 2,201 for the year. In 2023, the average fell to 943, with a high of 1,441 in May, and 2024 continued the trend with an average of 818, peaking at 1,130 in March. By early 2025, January sat at 620, February at 644, and March at 443, suggesting a market with less urgency.What does this mean for Austin’s housing scene? When the index climbs above 1,500—like it did in May 2018 at 2,316 or July 2020 at 4,384—it signals a seller’s market where homes sell fast, and inventory shrinks. Below 500, as seen in January 2009 at 165 or November 2022 at 533, it’s a buyer’s market with more homes than takers. Most years hover between these extremes, like 2016’s average of 1,047 or 2014’s 995, showing a balanced market with steady activity.This data isn’t just numbers on a page—it’s a tool for anyone navigating Austin real estate. Take 2017, when the index averaged 1,437 and hit 2,174 in May, indicating strong demand that favored sellers. Buyers that year faced stiff competition, especially in spring. Flip to 2010, with an average of 344 and a low of 205 in January, and buyers had the upper hand as supply lingered. Even recent years like 2023, with a median of 867, or 2024, with a median of 771, show a market easing from the highs of 2020 and 2021, giving buyers more breathing room.Team Price Real Estate’s <a href="https://teamprice.com/market-performance">Market Performance Metrics</a>, where this index lives, is part of a broader set of analytics. Their <a href="https://teamprice.com/market-performance">Market Performance</a> section at <a href="https://teamprice.com/market-performance">https://teamprice.com/market-performance</a> features 11 other reports, all updated daily, to track and forecast Austin’s market with precision. Whether you’re buying, selling, or advising clients, these insights cut through the noise. The Pending-to-Supply Pressure Index stands out because it ties pending sales directly to inventory pressure, offering a real-time snapshot of where the market’s headed.Looking at specific moments, like May 2016’s 1,479 or December 2018’s 1,365, you see how seasonal trends play in. Spring often brings higher pressure—March 2019 hit 2,072—while late fall can ease off, like November 2014 at 649. The extremes, though, really stick out: that 9,442 in March 2021 dwarfed the 150 in November 2008, showing how fast Austin can swing from buyer-friendly to seller-driven. Even in 2025, with March at 443, the market feels quieter than the 5,128 peak of December 2020.This proprietary data from Team Price Real Estate isn’t just for insiders—it’s a window into Austin’s housing pulse. Whether you’re tracking the climb from 360 in January 2005 to 1,049 in August or the drop from 9,442 in March 2021 to 325 later that year, the <a href="https://teamprice.com/market-performance">Pending-to-Supply Pressure Index</a> lays out the market’s rhythm. It’s a detailed, data-driven guide for anyone wanting to understand inventory dynamics in one of America’s most watched real estate markets.FAQ SectionQ: What is the Pending-to-Supply Pressure Index in real estate?A: The Pending-to-Supply Pressure Index is a metric that measures pressure on housing inventory by dividing the number of pending sales by active listings and multiplying by the number of homes sold. It shows how pending sales, which are likely to close, reduce available supply. In Austin, Team Price Real Estate tracks this index, with data from 2005 to March 2025 showing highs like 9,442 in March 2021 and lows like 150 in November 2008.Q: How does the Pending-to-Supply Pressure Index affect home buyers?A: When the index is high, like 2,590 in May 2019 or 9,442 in March 2021, buyers face a tight market with fewer homes and more competition, often driving prices up. A low index, such as 165 in January 2009 or 443 in March 2025, means more inventory and less pressure, giving buyers more options and negotiating power.Q: Why is the Austin real estate market so volatile?A: Austin’s market fluctuates due to factors like economic shifts, population growth, and demand surges. The Pending-to-Supply Pressure Index captures this, showing a peak of 9,442 in March 2021 during a buying boom and a drop to 150 in November 2008 after the financial crisis. Seasonal trends and external events, like the 2020 pandemic spike to 5,128 in December, also play a role. ​

Explore 20 years of Austin real estate trends with Team Price Real Estate’s Pending-to-Supply Pressure Index. From a peak of 9,442 in 2021 to a low of 150 in 2008, see how this metric reveals inventory pressure and market shifts for buyers and sellers

Understanding Austin’s Inventory Dynamics with Team Price Real Estate Data

​Exploring Housing Affordability in Austin Through the Numbers<a href="https://teamprice.com/affordability">Housing affordability in Austin</a> has been a hot topic for years, and the latest data from Team Price Real Estate’s affordability report, dated March 19, 2025, gives us a clear look at how monthly mortgage payments have evolved and what they mean for residents today. This report dives deep into the numbers, tracking the monthly mortgage payment—known as PITI, which stands for Principal, Interest, Taxes, and Insurance—over 25 years. It uses the median sold price each month, assumes a 20% down payment, and applies the 30-year mortgage rate at that time. Let’s walk through what this data reveals about Austin’s housing market, from historical trends to current costs across the city’s zip codes.Back in 2000, the average monthly PITI was $1,195, a figure that stayed relatively steady through the early 2000s. For example, in 2001, it averaged $1,163, and by 2003, it dipped to $1,101. Things started shifting after the 2008 financial crisis, with 2009 showing a modest drop to $1,244 as home prices and interest rates adjusted. The 2010s marked a slow climb, with payments holding at $1,242 in 2010 and reaching $1,912 by 2019. Then came the 2020s, and the numbers took off. In 2021, the average jumped to $2,564, and by 2022, it hit $3,542—a peak driven by soaring home prices and rising rates. The report shows some leveling off in 2023 and 2024, both averaging $3,612, before settling at $3,400 in March 2025. That’s nearly triple the cost from 2000, showing how much tougher it’s gotten to buy a home in Austin over time. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250319114358.png" alt="" width="" height="" style=""></figure></div>​ Looking at year-over-year changes, the data highlights some big swings. In 2022, the largest annual increase was $1,083 in May, with an average rise of $842 across the year. That translates to a peak percentage jump of 40.3%, a massive shift from the year before. Compare that to 2009, when payments dropped by as much as $189 in October, totaling a $1,352 decline for the year—a 13.8% decrease tied to the recession. More recently, the first three months of 2025 show smaller changes: a $70 drop in January, $99 less in February, and a $2 dip in March, adding up to a $171 decrease so far. These numbers suggest the market might be stabilizing after years of rapid growth, though it’s still far from the affordability of decades past.Month-to-month shifts offer another layer of detail. The biggest single-month increase was $403 in April 2022, a 12.2% jump, while the largest drop was $251 in January 2025, down 9.0%. In 2025 alone, January fell by $251, February rose by $90, and March climbed $136—a 4.2% uptick. Over the years, April often sees gains, like $200 in 2021, while January and September tend to show declines. These fluctuations reflect seasonal patterns and sensitivity to interest rate changes, giving a sense of how unpredictable monthly costs can be for Austin homebuyers.The report also breaks down affordability across 75 zip codes in the Austin area, measuring how much of a household’s income goes to PITI with a 20% down payment. Out of these, only two zip codes are considered affordable, meaning PITI takes up 35% or less of median income. Twenty-four fall into the moderately affordable range, between 35% and 50%, while 49 are unaffordable, exceeding 50%. In Jarrell (zip code 76537), the median income is $83,401, and PITI is $2,349, using 33.8% of income—making it one of the most affordable spots.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250319114538.png" alt="" width="" height="" style=""></figure></div> Elgin (78621) follows, with $85,262 in income and $2,514 in PITI, at 35.4%. On the other end, Florence (76527) has a median income of $65,245 but a PITI of $6,005, eating up 110.4% of income. In Austin’s 78746 zip code, where income is $179,148, PITI reaches $18,378—123.2% of income, far beyond what most can manage. The report calculates that 78746 residents would need $630,013 in income to keep PITI at 35%, showing a huge gap.Down payment size changes the picture too. The report compares PITI across five scenarios: 20% down with no private mortgage insurance (PMI), 15% with 0.23% PMI, 10% with 0.46% PMI, 5% with 0.59% PMI, and FHA’s 3.5% with 0.55% mortgage insurance premium (MIP). For a $760,000 home in 78701, PITI is $5,652 with 20% down, but it jumps to $6,475 with 5% down—a 14.6% increase. In Driftwood (78619), with a $1,299,900 median price, it’s $9,401 at 20% and $10,809 at 5%, adding $1,408 monthly. Across Austin’s average of $625,000, PITI ranges from $4,649 to $5,327 depending on the down payment. Smaller down payments mean higher costs, especially for buyers with less cash upfront.Mortgage insurance plays a big role in these numbers. For conventional loans with less than 20% down, PMI ranges from 0.19% to 1.86% of the loan amount annually, depending on credit score and loan-to-value ratio. For a $200,000 loan at 1.0%, that’s $2,000 a year, or $166 monthly. FHA loans, with 3.5% down, charge 1.75% upfront and 0.55% annually—down from 0.85% before March 2023. On a $300,000 home with 3.5% down, FHA’s monthly cost is $208, compared to $292 for a conventional loan. The report shows how these extras protect lenders, not borrowers, and add up quickly for those stretching to buy.Across cities, the data varies widely. Austin’s median price of $625,000 yields a PITI of $4,649 with 20% down, while Buda’s $411,825 home costs $3,223. Driftwood’s $1,299,900 price tag means $9,400 monthly, and Jarrell’s $299,990 keeps it at $2,349. These figures show how location and price shape affordability, with rural areas like Jarrell offering lower costs than central Austin or upscale Driftwood. The report’s zip code details—like $3,483 in Pflugerville (78660) versus $9,401 in Driftwood (78619)—highlight the range of experiences within the metro area.This <a href="https://teamprice.com/affordability">affordability report</a>, last revised on March 19, 2025, pulls together decades of data to show how Austin’s housing market has changed. From a modest $1,195 monthly payment in 2000 to $3,400 today, the numbers tell a story of rising costs and shrinking accessibility. Whether it’s the year-over-year surges of 2022, the monthly ups and downs of 2025, or the stark differences across zip codes, the data offers a detailed snapshot of what it takes to buy a home in Austin right now. Q1: How much does the average mortgage cost in Austin in 2025?A: According to Team Price Real Estate’s March 19, 2025, report, the average monthly mortgage payment (PITI) in Austin with a 20% down payment is $4,649 for a median-priced home of $625,000. This varies by area, with Jarrell at $2,349 for a $299,990 home and Driftwood at $9,400 for a $1,299,900 home.Q2: Is housing in <a href="https://teamprice.com/affordability">Austin affordable</a> in 2025?A: The 2025 affordability report shows that only 2 of 75 zip codes in the Austin area are affordable, where PITI is 35% or less of median income. Twenty-four are moderately affordable (35-50%), and 49 are unaffordable (over 50%). For example, in 78746, PITI takes up 123.2% of income, while Jarrell stays at 33.8%.Q3: How have Austin home prices changed over time?​The report tracks PITI from $1,195 in 2000 to $3,400 in March 2025, nearly tripling over 25 years. Home prices and mortgage rates drove big jumps, like $1,083 year-over-year in 2022, though 2023 and 2024 stabilized around $3,612, reflecting a mix of price growth and rate shifts.&nbsp;

Explore Austin’s housing affordability in 2025 with detailed data on PITI, historical trends, and zip code breakdowns from Team Price Real Estate’s latest report. Learn how mortgage costs have tripled since 2000 and what it takes to buy a home today

Austin Housing Affordability in 2025: A Data-Driven Look at Mortgage Costs

​Understanding <a href="https://teamprice.com/cap-rate">Austin's Cap Rate</a> Trends: A Comprehensive AnalysisThe Austin real estate market has experienced notable fluctuations over the years, particularly in capitalization rates, or cap rates, which are essential for assessing the profitability of rental properties. A cap rate is calculated by dividing a property's net operating income by its current market value, providing a percentage that reflects the expected return on investment. Recent data indicates a downward trend in Austin's cap rates, influenced by various economic factors.​In March 2023, <a href="https://teamprice.com/cap-rate">Austin's cap rate</a> stood at 3.47%. By March 2025, it had declined to 3.23%, suggesting that property values and associated costs have risen faster than rental incomes. This trend implies that investors are receiving lower returns relative to property prices, making it crucial to evaluate the sustainability of such investments.​<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250320120900.png" alt="" width="" height="" style=""></figure></div>​ Comparing cap rates to other investment options, such as the six-month Treasury Bill yield, provides additional insight. Historically, Austin's cap rates were higher than Treasury yields, making real estate investments more attractive. However, in recent years, this relationship has reversed. For instance, in March 2025, the six-month Treasury yield was 4.30%, exceeding Austin's cap rate by 1.07 percentage points. This negative spread suggests that risk-free government bonds offer higher returns than Austin's rental properties, potentially influencing investor decisions.​Examining historical trends, Austin's cap rates were between 6% and 7% in the early 2000s, indicating higher returns for investors. Over time, as Austin's popularity and property values increased, cap rates declined, reaching below 3% around 2021. This decline reflects a market where property appreciation outpaced rental income growth, leading to lower yields for investors.​Cap rates also vary significantly across different Austin zip codes. In March 2025, the 78725 zip code offered the highest cap rate at 6.45%, making it attractive for investors seeking higher rental yields. Other areas, such as Cedar Creek (78612) and Marble Falls (78654), had cap rates exceeding 5%, indicating strong rental returns relative to property values. Conversely, upscale neighborhoods like 78703, 78733, and 78735 had cap rates below 1%, suggesting that investments in these areas rely more on long-term property appreciation than immediate rental income.​ <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250320121017.png" alt="" width="" height="" style=""></figure></div> The declining cap rates in Austin highlight the importance for investors to carefully assess their investment strategies. With current cap rates lower than Treasury yields, some investors might consider alternative investments offering higher returns with lower risk. However, real estate investments also provide potential benefits such as property appreciation and tax advantages, which should be factored into any investment decision.​In conclusion, Austin's real estate market has transitioned from offering high rental yields to being more appreciation-driven. Investors need to adapt their strategies accordingly, considering both current cap rates and alternative investment opportunities to make informed decisions that align with their financial goals. Q1: What is a cap rate in real estate investing? A1: A capitalization rate, or cap rate, measures the return on investment for a rental property, calculated by dividing the net operating income by the property's current market value. It helps investors assess the profitability of a property.Q2: Why are Austin's cap rates declining? A2: Austin's cap rates are declining due to property values and associated costs rising faster than rental incomes, leading to lower returns relative to property prices.Q3: How do Austin's cap rates compare to Treasury yields? A3: As of March 2025, Austin's cap rate is 3.23%, while the six-month Treasury Bill yield is 4.30%. This means that risk-free government bonds currently offer higher returns than Austin's rental properties, potentially influencing investor decisions.​

Explore the latest trends in Austin's real estate cap rates, including historical data, comparisons with Treasury yields, and zip code-specific insights to guide your investment decisions in 2025.

Austin's Cap Rate Trends: A Data-Driven Analysis for 2025

Austin Area Housing Market Shifts: Inventory Changes from January to March 2025The housing market in the Austin Area has undergone some striking changes in early 2025, especially when it comes to how long homes are staying on the market. By digging into data from January 16, 2025, and March 17, 2025, we can track how inventory levels—measured in months—have shifted across 30 key cities in the region. This information, pulled together by Team Price Real Estate, shows the number of months it would take to sell all active listings if no new homes hit the market. Cities with less than 4.9 months of inventory are labeled sellers’ markets, those with 5 to 6.9 months are neutral, and anything over 7 months points to a buyers’ market. Let’s take a closer look at what’s happening in places like Austin, Marble Falls, and Cedar Park based on this detailed breakdown.<div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250317120402.png" alt="" width="" height="" style=""></figure></div> In January 2025, the Austin Area market was tilted toward sellers, with 17 of the 30 cities (57%) showing less than 4.9 months of inventory. Just 5 cities (17%) had over 7 months, indicating a buyers’ market, while 8 cities (27%) fell into the neutral range of 5 to 6.9 months. The median inventory across all cities was 4.48 months, and the average was 5.09 months, reflecting a market where homes sold fairly quickly. By March 17, 2025, things had flipped. Only 3 cities (10%) stayed in the sellers’ market range, while 14 cities (47%) were neutral, and 13 cities (43%) moved into buyers’ territory with over 7 months of inventory. The median climbed to 6.61 months, and the average hit 7.41 months, suggesting a noticeable slowdown in home sales throughout the Austin Area.Certain cities saw dramatic inventory jumps over these two months. Marble Falls, for example, watched its months of inventory rise from 4.76 in January to 10.37 in March—a 5.61-month increase. That’s a 117.86% surge, pushing it from a sellers’ market to a solid buyers’ market. Cedar Park’s inventory went from 1.96 months to 3.88 months, up 1.92 months or 97.96%. It’s still a sellers’ market but getting closer to neutral. Leander’s inventory grew from 3.12 months to 6.01 months, a 2.89-month rise or 92.63%, shifting it from sellers’ to neutral territory. Lockhart increased from 3.22 months to 6.14 months, a 2.92-month gain or 90.68%, also landing in the neutral zone. Smithville wrapped up the top five, with inventory climbing from 5.89 months to 11.00 months—a 5.11-month jump or 86.76%—making it a strong buyers’ market by March.Other Austin Area cities showed big changes too. Austin itself moved from 4.04 months of inventory in January to 7.10 months in March, a 3.06-month increase or 75.74%. This change took the city from a sellers’ market to a buyers’ market, with active listings growing from 2,882 to 3,839. Georgetown’s inventory rose from 3.60 months to 6.55 months, up 2.95 months or 81.94%, placing it in neutral territory. Driftwood saw a hefty increase, going from 6.23 months to 11.00 months (a 4.77-month rise or 76.57%), firmly favoring buyers. San Marcos jumped from 4.89 months to 8.04 months, a 3.15-month gain or 64.42%, also leaning toward buyers by March. Lakeway’s inventory increased from 5.25 months to 9.15 months, up 3.90 months or 74.29%, crossing into buyers’ market status.Not all shifts were huge, but the trend toward more inventory is unmistakable across the Austin Area. Kyle’s months of inventory went from 3.41 to 5.64, a 2.23-month increase or 65.40%, moving from sellers’ to neutral ground. Pflugerville’s inventory rose from 2.92 months to 5.28 months, up 2.36 months or 80.82%, hitting the neutral range. Round Rock, still a sellers’ market, saw inventory grow from 2.83 months to 4.34 months, a 1.51-month rise or 53.36%. Wimberley’s inventory increased from 6.75 months to 10.23 months, a 3.48-month jump or 51.56%, solidifying its buyers’ market position. Even cities with smaller percentage changes, like Taylor (6.19 to 6.59 months, up 0.40 months or 6.46%), show a market cooling off since January.The numbers also tie into active listings across the Austin Area. In January, 22 cities (73%) had less than 6 months of inventory, but by March, that dropped to 10 cities (33%). Meanwhile, cities with over 6 months of inventory rose from 8 (27%) in January to 20 (67%) in March. Liberty Hill, for instance, saw inventory increase from 4.20 months to 6.63 months, a 2.43-month rise or 57.86%, with active listings climbing from 337 to 418. Hutto’s inventory grew from 4.20 months to 5.95 months, up 1.75 months or 41.67%, with listings rising from 221 to 264. These figures reveal how supply is outpacing sales in many parts of the region.Smaller Austin Area towns felt the shift too. Bastrop’s inventory went from 5.60 months to 7.77 months, a 2.17-month increase or 38.75%, tipping into a buyers’ market. Manchaca, starting at 8.00 months in January, rose to 9.60 months by March, up 1.60 months or 20.00%. Spicewood reached 11.00 months in March, up from 9.33 months in January (a 1.67-month gain or 17.90%). Burnet, with a smaller change, saw inventory creep from 8.27 months to 9.26 months, a 0.99-month rise or 11.97%. These numbers paint a picture of a region where homes are lingering longer, giving buyers more breathing room.<div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250317120533.png" alt="" width="" height="" style=""></figure></div>​ So, what’s the takeaway for the Austin Area housing market in early 2025? The data shows a clear move from a fast-moving, seller-friendly market in January to a slower, more balanced one by March. Cities like Marble Falls, Cedar Park, and Leander top the list with some of the largest percentage increases in inventory, while Austin and Georgetown show steady supply growth. Whether it’s a busy urban center or a quieter suburb, the numbers tell a story of change, with 43% of cities favoring buyers by mid-March compared to just 17% two months earlier. For anyone keeping an eye on Austin Area real estate trends, this data offers a solid look at how inventory dynamics evolved over this short but revealing stretch.Q1: How is the housing market trending in the Austin Area in 2025?A: In early 2025, the Austin Area housing market moved from a seller-heavy scene to a more balanced one. Team Price Real Estate data shows that in January, 57% of 30 tracked cities had less than 4.9 months of inventory, favoring sellers. By March, only 10% stayed in that range, while 43% had over 7 months, favoring buyers, and 47% were neutral (5–6.9 months). The median inventory rose from 4.48 months to 6.61 months, signaling homes are selling more slowly across the area.Q2: Which Austin Area cities saw the biggest inventory increases in 2025?A: From January to March 2025, Marble Falls topped the list with a 117.86% increase in months of inventory (4.76 to 10.37), followed by Cedar Park at 97.96% (1.96 to 3.88), Leander at 92.63% (3.12 to 6.01), Lockhart at 90.68% (3.22 to 6.14), and Smithville at 86.76% (5.89 to 11.00). These shifts, sourced from Team Price Real Estate, show a clear trend toward higher supply in these markets.Q3: What does an increase in months of inventory mean for Austin Area homebuyers?A: An increase in months of inventory, like the Austin Area’s jump from 5.09 to 7.41 between January and March 2025, means more homes are available compared to demand. With 20 of 30 cities exceeding 6 months by March (up from 8 in January), buyers gain more options and bargaining power, while sellers may see listings sit longer. This data, tracked by Team Price Real Estate, points to a cooling market favoring buyers.

Discover the latest Austin Area housing market trends with detailed inventory data from January and March 2025. Learn how cities like Austin, Marble Falls, and Cedar Park shifted from sellers’ to buyers’ markets, based on Team Price Real Estate’s in-depth report

Austin Area Housing Market Trends: Inventory Changes from January to March 2025

​A Deep Dive into Austin’s Active Housing Market on March 13, 2025Austin’s residential real estate market on March 13, 2025, gives us a clear look at homes currently for sale, based on detailed data from Team Price Real Estate. With 3,643 active listings, we can explore how long these homes have been sitting on the market, how many are available in different price ranges and sizes, and how quickly they’re moving toward contracts. This analysis focuses on active listings only—those still waiting for buyers—offering a snapshot of inventory and demand in one of America’s hottest cities.Let’s begin with the days on the market for these active homes. Across all 3,643 listings, the average time on the market is 83 days, while the median is 42 days. This means half of Austin’s active homes have been listed for 42 days or less, but some have lingered longer, pushing the average higher. For example, homes priced between $600,000 and $700,000 have been active for an average of 75 days and a median of 39 days, while those in the $200,000 to $300,000 range show an average of 95 days and a median of 61 days—the longest of any price group. By size, homes between 1,500 and 1,750 square feet have been on the market for an average of 66 days with a median of 34 days, the shortest median among size ranges. In contrast, tiny homes under 250 square feet average 116 days, indicating they’ve been sitting unsold for nearly four months.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250314010512.png" alt="" width="" height="" style=""></figure></div>​Next, let’s examine the number of active listings available on March 13, 2025. Out of the 3,643 total, the largest share—939 homes, or 25.8%—is priced at $1 million or higher, highlighting a big pool of luxury properties still on the market. The $500,000 to $600,000 range has 541 listings, making up 14.9%, and $400,000 to $500,000 follows with 446 homes, or 12.2%. When it comes to size, homes between 1,000 and 1,250 square feet top the list with 399 listings, or 11%, while those from 1,250 to 1,500 square feet have 393 listings, or 10.8%. Smaller homes are less common, with just 31 listings between 250 and 500 square feet and only one under 250 square feet, showing how rare tiny properties are among active inventory.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250314010705.png" alt="" width="" height="" style=""></figure></div>How much buyer interest are these active homes seeing? The activity index, calculated as the percentage of pending homes out of the total active plus pending pool, sheds light on this. Across price ranges, the $500,000 to $600,000 segment leads with a 37% activity index, meaning 37% of homes in this range are under contract, even as 541 remain active. The $1 million-plus category is close behind at 37.5%, despite its 939 active listings. The $200,000 to $300,000 range, however, shows the lowest activity at 18.8%, with 60 homes still unsold. By size, homes between 2,000 and 2,250 square feet have a 28.5% activity index, while those from 1,250 to 1,500 square feet sit at 23.8%. Smaller homes between 250 and 500 square feet lag at 15.6%, suggesting less buyer movement in that segment. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250314121344.png" alt="" width="" height="" style=""></figure></div>Digging deeper, certain price and size combinations reveal more about these active listings. For homes sized 2,000 to 2,250 square feet in the $500,000 to $600,000 range, there are 58 active listings with a 37% activity index, yet they’ve been on the market an average of 72 days. In the $200,000 to $300,000 range, homes between 500 and 750 square feet have 81 active listings but a mere 4.7% activity index, with an average of 67 days on the market, showing slow interest. Luxury homes over $1 million sized 2,750 to 3,000 square feet have a 39.9% activity index, but with sparse active listings, they’re part of the broader $1 million-plus group averaging 84 days on the market.The interplay of price and size among active listings tells a bigger story. The mid-range, from $400,000 to $700,000, accounts for 39.3% of inventory with 1,430 active homes, including 541 at $500,000 to $600,000 and 443 at $600,000 to $700,000. These homes show activity indexes from 29.6% to 37% and have been active for medians of 39 to 46 days. Homes sized 1,250 to 2,000 square feet, with 1,096 active listings, make up 30% of the total and have median days on the market from 34 to 40 days, paired with activity indexes of 23.2% to 28.5%. At the high end, the 939 active listings over $1 million have a 37.5% activity index but an average of 84 days, suggesting many luxury homes remain unsold longer. The low end, with 60 active homes between $200,000 and $300,000, faces an 18.8% activity index and a 95-day average, indicating these scarce listings aren’t drawing much attention.What does this mean for Austin’s active housing market? The data shows a market where mid-range homes between $400,000 and $700,000 dominate inventory with 1,430 listings and see strong buyer interest, with activity indexes above 29% and medians under 46 days. The luxury segment, with 25.8% of active listings at $1 million or more, maintains a 37.5% activity index, but its 84-day average points to a slower pace for these 939 homes. Smaller, cheaper homes under $300,000, just 1.6% of the total with 60 listings, have been active the longest at 95 days on average and show the weakest activity at 18.8%. Size-wise, the 1,000 to 2,000 square foot range, with 41% of active listings, balances solid activity with shorter median days on the market.Based on Team Price Real Estate’s data from March 13, 2025, Austin’s active residential market reflects a diverse landscape. With 3,643 homes currently listed, an overall average of 83 days on the market, and activity indexes peaking at 37% in key price ranges, the market leans toward strength in its mid and upper tiers. Whether it’s a 1,500-square-foot home active for a median of 34 days or a $1 million-plus property with high buyer interest, Austin’s active listings show a city with plenty of homes still waiting for the right buyer as of mid-March 2025. FAQHow long have homes been on the market in Austin in 2025?As of Marc 13, 2025, active homes in Austin have an average of 83 days on the market and a median of 42 days. Homes sized 1,500 to 1,750 square feet have the shortest median at 34 days, while those under 250 square feet average 116 days.How many active homes are for sale in Austin right now?On March 13, 2025, there are 3,643 active residential listings in Austin. The most are over $1 million (939 homes), followed by $500,000 to $600,000 with 541 listings.What’s the most common price range for active homes in Austin?Among active listings on March 13, 2025, the $500,000 to $600,000 range has 541 homes (14.9% of the total), the largest below $1 million. It also has a 37% activity index, showing buyer interest despite 541 still being unsold.Are luxury homes sitting unsold in Austin in 2025?Luxury homes over $1 million make up 939 active listings (25.8%) as of March 13, 2025, with an average of 84 days on the market. Their 37.5% activity index suggests many are moving toward contracts, but plenty remain available.What size homes are most available in Austin’s active market?On March 13, 2025, active homes between 1,000 and 1,250 square feet lead with 399 listings (11%), followed by 1,250 to 1,500 square feet with 393 (10.8%). These sizes also have median days on market of 34 to 44 days.​

Explore Austin’s active housing market on March 13, 2025, with 3,643 listings, an average of 83 days on the market, and activity rates up to 37%. Dive into detailed data on prices and sizes for homes still for sale

Austin Active Housing Market: Days on Market and Listings for March 2025

Austin’s Real Estate Market: March 3–10, 2025, and Year-to-Date Trends The Austin real estate market is always shifting, and the latest data from March 3 to March 10, 2025, offers a fresh look at how homes are moving in this vibrant Texas city. This weekly update, combined with monthly trends from January to early March 2025, paints a clear picture of where the market stands today. Using data from the “Weekly Residential Update” and “Monthly New Listing to Pending Ratio” provided by Team Price Real Estate, we can see exactly what’s happening with new listings, pending sales, mortgage rates, and more in the Austin area. Let’s start with the most recent week, March 3 to March 10, 2025. During this seven-day period, 1,489 new listings hit the market, including homes that came back on the market after previous deals fell through. Meanwhile, 310 homes went pending, meaning they’re under contract and heading toward closing. This activity resulted in a new listing to pending ratio of 0.50, which is calculated by dividing the total new listings plus back-on-market homes by the sum of active under contract and pending properties. In this case, that’s 1,489 new listings divided by the 851 total homes under contract or pending (541 active under contract plus 310 pending). A ratio this low—well below 1—shows that more homes are entering the market than are being snapped up by buyers, suggesting a slower pace of sales and a buildup of inventory. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250311095841.png" alt="" width="" height="" style=""></figure></div> Looking at other numbers from that week, 177 homes saw price increases, while a much larger group—1,602—experienced price decreases. This indicates sellers are adjusting their expectations, likely to attract more buyers in a market where demand isn’t keeping up with supply. The percentage of homes with price drops hit 90%, a significant figure that reinforces the trend of softening demand. On top of that, 210 homes came back on the market, representing 14% of the new listings, showing that some deals are falling apart before they close. Open houses also remained active, with 2,844 held during the week, giving buyers plenty of chances to explore available properties. The mortgage rate for this period was 6.63%, a slight drop from the 6.76% seen the previous week, which could influence buyer decisions as borrowing costs ease just a bit. Now, let’s zoom out to see how March 2025 is shaping up so far. With only 10 days of data, the monthly new listing to pending ratio stands at 0.55, based on the weekly figures we have. This continues a downward trend from earlier in the year. For comparison, January 2025 had a monthly ratio of 0.69, calculated from weeks where new listings ranged from 629 to 1,042 and pending sales hovered between 405 and 464. February 2025’s ratio was 0.73, with new listings climbing from 1,030 to 1,219 and pending sales staying steady between 455 and 509. The drop to 0.55 in early March suggests that the market is cooling further as the year progresses, with inventory growing faster than buyer activity. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250311095858.png" alt="" width="" height="" style=""></figure></div> Rewinding to the previous week, February 24 to March 3, 2025, we see a similar story. That week brought 1,219 new listings and 453 pending sales, yielding a ratio of 0.70. Price decreases outnumbered increases—1,268 versus 153—and 89% of homes saw their prices cut. The mortgage rate then was 6.76%, a bit higher than the following week, and open houses totaled 2,977, showing strong seller efforts to draw in buyers. The difference between total listings and pending sales was 432, a notable gap that highlights how supply is outpacing demand. Looking back at the full dataset from September 2024 to March 2025, some patterns emerge. New listings peaked at 1,489 in the most recent week, the highest since at least September 16, 2024, when 954 homes were listed. Pending sales, however, hit their lowest point in early March at 310, down from a high of 528 in late January 2025. Mortgage rates have fluctuated, starting at 6.09% in mid-September 2024, climbing to a peak of 7.04% in mid-January 2025, and now settling at 6.63%. This rollercoaster of rates likely plays a role in buyer behavior, with lower rates potentially encouraging more activity, though the data shows demand hasn’t surged yet. The monthly historical data stretching back to 2000 provides even more context. The average new listing to pending ratio for March across all years is around 0.81, but 2025’s early figure of 0.55 is well below that mark. It’s the lowest March ratio since at least 2000, when it was 0.91. This suggests that the Austin market is experiencing an unusually slow start to the spring season, a time when real estate typically picks up. For the year so far, 2025’s average ratio of 0.66 (across January, February, and early March) is also lower than the 2024 full-year average of 0.80, signaling a shift toward a softer market. Inventory changes are another key piece of the puzzle. The “Diff” column, which tracks the difference between total listings and pending sales, hit 848 in the March 3–10 week—the highest since October 2024’s 279. This growing gap shows that homes are stacking up on the market, a trend that’s been building since late 2024, when the difference dipped to a low of -177 in late November. Meanwhile, the percentage of homes back on the market has hovered between 14% and 23% in 2025, with the latest week at 14%, down from a high of 23% in late October 2024. What does all this mean for Austin’s real estate scene? The data from March 3 to March 10, 2025, shows a market where new listings are flooding in, but buyers aren’t keeping pace. Price cuts are widespread, and homes are lingering longer, as seen in the low pending sales numbers. The early March monthly ratio of 0.55 reinforces this, marking a continuation of the softening trend from January and February. Compared to historical norms, this is a slower market than Austin has seen in years, driven by a mix of high inventory, adjusting prices, and mortgage rates that, while slightly down, remain above 6%. As we move deeper into March, these numbers will be worth watching to see if the spring season brings a shift or if this cooling period holds steady. ​

Explore the latest Austin real estate market trends for March 3–10, 2025, and year-to-date insights. Dive into new listings, pending sales, mortgage rates, and the new listing to pending ratio driving the Austin housing scene this month

Austin Real Estate Market Update: March 3–10, 2025 Trends and Insights

​Understanding Austin’s Housing Market Trends and FHA Loan Performance in 2025The housing market in Austin, Texas, has been a rollercoaster over the past two decades, with dramatic shifts in inventory, sales, and market conditions. As of March 8, 2025, data from Team Price Real Estate shows active residential listings at 13,221, a notable increase from 3,630 in March 2022. That’s a jump of 264.2% in just three years. Meanwhile, home sales have taken a dip, with a projected 2,514 homes sold in March 2025, down 19.9% from 3,139 the previous year and a steep 46.0% drop from the peak of 4,660 in June 2021. This shift has pushed the Months of Inventory (MOI)—a measure of how long it would take to sell all homes at the current pace—to 5.1 months, landing the market in neutral territory between a seller’s and buyer’s market.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250308115137.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" width="" height="" data-size="," data-align="none" data-percentage="auto,auto" data-index="0" data-file-name="image.png" data-file-size="93913" data-origin="," style=""></figure></div> But what’s driving these changes, and why aren’t we seeing a wave of distressed properties like foreclosures despite the cooling demand? To answer that, we need to look at both local trends and national data, including the latest FHA Single Family Loan Performance Trends report from November 2024.Let’s start with Austin’s history. Back in 2006, before the housing bubble burst, active listings sat at 9,445 in March, climbing to a peak of 14,326 by July 2010 as the Great Recession hit. That’s a 51.7% increase over four years, driven largely by foreclosures and distressed sales after sales plummeted 55.0% from 3,341 in June 2006 to 1,503 in March 2009. The MOI soared to 8.7 months in July 2010, signaling a buyer’s market where homes lingered unsold. Fast forward to today, and the numbers tell a different story. Inventory has spiked much faster—up 198.3% year-over-year from March 2022 to March 2023 alone—yet sales declines, while significant, haven’t hit the depths of 2009. So, why isn’t this looking like the last housing correction?<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250308115206.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" width="" height="" data-size="," data-align="none" data-percentage="auto,auto" data-index="1" data-file-name="image.png" data-file-size="96714" data-origin="," style=""></figure></div> One big clue comes from the FHA Single Family Loan Performance Trends report, published by the U.S. Department of Housing and Urban Development in December 2024. This report tracks loans insured by the Federal Housing Administration, which are popular among first-time buyers—a key group in Austin’s market. As of November 2024, 7,851,909 FHA loans were active, with a serious delinquency rate (loans 90+ days late, in foreclosure, or bankruptcy) of 4.41%, up from 3.91% a year earlier. That’s a sign of growing financial strain. Breaking it down, 3.60% of loans were 90+ days delinquent, 0.37% were in foreclosure, and 0.44% were in bankruptcy. Despite this, foreclosure starts have stayed steady, dropping slightly from 6,073 in November 2023 to 5,563 in November 2024, with an annualized foreclosure rate of just 0.16%. Loans in foreclosure also fell from 44,042 in March 2023 to 29,402 in November 2024. This stability stands out when compared to the 2008–2010 period, where foreclosures surged and fueled inventory.So, what’s keeping distressed properties at bay? The FHA data offers insight. Programs introduced in recent years help borrowers avoid foreclosure by allowing missed payments to be added to the loan’s principal without interest. For example, a borrower missing five $4,000 payments would see $20,000 tacked onto their loan, and their monthly payment could be cut by $1,000 for three years, adding another $36,000 to the principal—totaling $56,000 in extra debt, interest-free. The FHA paid out 556,841 such “incentive payments” to mortgage servicers in the past year, nearly matching the number of new loans insured. This approach, detailed in a February 23, 2025, Wall Street Journal article by Allysia Finley titled “Biden’s Mortgage ‘Relief’ Fuels Higher Housing Prices,” keeps homes off the foreclosure market, even as 7.05% of FHA loans from 2023 went seriously delinquent within 12 months—higher than the 7.02% peak in 2008.Looking closer at FHA borrowers, the risk profile has grown. In 2007, 35% of new FHA borrowers had debt-to-income (DTI) ratios above 43%; by 2020, that rose to 54%, and last year, it hit 64%. About 79% of first-time FHA buyers in 2024 had less than a month’s worth of financial reserves, according to estimates from the American Enterprise Institute’s Ed Pinto and Tobias Peter, cited in the Wall Street Journal piece. Table 3 from the FHA report backs this up: loans to borrowers with credit scores below 620 have serious delinquency rates as high as 8.41%, compared to 1.32% for those above 720. Loans from the 2019 cohort show a 7.50% serious delinquency rate, while newer 2024 loans are at 1.72%. Despite this risk, foreclosure remains rare, thanks to these relief programs.In Austin, this national trend likely plays a role. The city’s inventory jumped to 16,179 in June 2024 before easing to 13,221 by March 2025—a 18.3% drop from the peak but still far above the 3,630 low in March 2022. Sales, meanwhile, have cooled from 3,636 in March 2022 to 2,514 projected for March 2025. Yet, unlike 2008–2010, when foreclosures drove inventory up and MOI hit buyer’s market levels, today’s MOI of 5.1 suggests balance, not distress. The FHA report’s Table 5 shows Texas REO recovery rates at 61.3% in October 2024, down from 74.7% a year earlier, but with only 41 dispositions, it’s a small piece of the puzzle. Table 6 reveals net loss rates on foreclosed properties at 30.18% in November 2024, with an average loss of $39,290 per property—manageable figures that don’t signal a flood of distressed sales.Comparing the two periods highlights the contrast. From 2006 to 2010, inventory grew gradually as sales crashed, with foreclosures pushing MOI to 8.7. Today, inventory soared quickly—264.2% from March 2022 to March 2025—while sales dropped 46.0% from their peak. But the FHA’s foreclosure rate of 0.37% and declining in-foreclosure loans (29,402 in Nov 2024) show no parallel to the 2008–2010 distress wave. The Wall Street Journal notes that servicers are incentivized to keep borrowers in homes, earning $1,750 per intervention, which could explain why Austin’s inventory rise stems from market cooling—like higher interest rates—rather than foreclosures.The FHA data also sheds light on who’s struggling. Purchase loans (72.24% of FHA’s portfolio) have a 4.99% serious delinquency rate, while first-time buyers (85.22% of purchase loans) face 5.16%, compared to 3.96% for repeat buyers. Loans with down payment assistance from relatives or sellers show rates up to 8.11%. Yet, foreclosure starts hover around 6,000 monthly, and claims paid by HUD for completed foreclosures are steady at 1,039 in November 2024. This suggests that while borrowers are stretched, relief measures are holding the line—keeping Austin’s market from tipping into a 2008-style crisis.So, what does this mean for Austin in 2025? The data paints a picture of a market adjusting after a boom, with inventory up and sales down, but not collapsing under distress. The FHA’s 4.41% serious delinquency rate and stable foreclosure stats signal pressure, but not a breaking point. Unlike 2006–2010, when foreclosures defined the correction, today’s policies are cushioning the fall. For now, Austin’s housing market—and the broader FHA portfolio—seems to be navigating a slowdown, not a crash, thanks to a safety net that wasn’t there last time. FAQ SectionWhat is the housing market like in Austin in 2025?As of March 2025, Austin’s housing market has 13,221 active listings, up 264.2% from 3,630 in March 2022, according to Team Price Real Estate. Sales are projected at 2,514 for March, down 19.9% from 3,139 in 2024, with an MOI of 5.1 months, indicating a balanced market between buyers and sellers.How do FHA loans affect the housing market?FHA loans, tracked in the November 2024 FHA Single Family Loan Performance Trends report, support first-time buyers (85.22% of purchase loans) but show a 4.41% serious delinquency rate. Relief programs adding missed payments to principal without interest (e.g., $56,000 per case) prevent foreclosures, stabilizing markets like Austin’s by keeping distressed homes off the market.Why aren’t there more foreclosures in 2025?The FHA report shows foreclosure starts steady at 5,563 in November 2024, with a 0.16% annualized rate. Programs paying servicers (556,841 payments last year) to defer payments to loan principal, as noted in the Wall Street Journal (Feb 23, 2025), reduce foreclosures despite a 7.05% delinquency rate for 2023 FHA loans.How does the 2025 housing market compare to 2008?Austin’s inventory rose 264.2% from 2022 to 2025, far outpacing the 51.7% increase from 2006 to 2010. Sales dropped 46.0% from 2021 to 2025, less than the 55.0% fall from 2006 to 2009. Unlike 2008–2010, when foreclosures drove MOI to 8.7, FHA policies keep today’s distress low, with MOI at 5.1.What are Months of Inventory, and why do they matter?Months of Inventory (MOI) measures how long it takes to sell all active listings at the current sales pace. Austin’s MOI is 5.1 in March 2025, per Team Price data, meaning it’s neutral (5–7 months). Below 5 favors sellers; above 7 favors buyers. It’s a key indicator of market health and balance.Credits : Data in this article is sourced from Team Price Real Estate (last revised March 8, 2025), the FHA Single Family Loan Performance Trends report (November 2024, published December 2024 by HUD), and “<a target="_blank" href="https://www.wsj.com/opinion/bidens-mortgage-relief-fuels-higher-housing-prices-policy-loans-risk-cb0a1974">Biden’s Mortgage ‘Relief’ Fuels Higher Housing Prices</a>” by Allysia Finley, Wall Street Journal, February 23, 2025. The FHA report is embedded below for reference.
 
 
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Explore Austin’s 2025 housing market with detailed data on inventory, sales, and FHA loan performance. Learn why rising inventory and falling sales haven’t led to distressed properties, compared to the 2008–2010 correction

Austin Housing Market Trends 2025: Inventory, Sales, and FHA Loan Insights

Austin Rental Market Trends: Are Rent Prices Falling in 2025? The Austin-Round Rock-Georgetown rental market is experiencing a shift in 2025, with rising vacancies and declining rent prices affecting both two-bedroom apartments and single-family rental homes. With data showing rental price adjustments across multifamily and single-family properties, this analysis explores how these trends impact renters and landlords alike. Are Rent Prices Going Down in Austin?&nbsp;Recent data indicates that rent prices in the Austin metro area have been gradually decreasing since mid-2023. Two-bedroom apartments, which saw peak pricing in mid-2022 at $1,725 per month, have dropped by approximately 17% to $1,426 by February 2025. The decline reflects a growing vacancy rate, now at 9.85%, compared to 3.97% in September 2021, when competition for rentals was at an all-time high.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305063351.png" alt="" width="" height="" style=""></figure></div>Residential lease properties, primarily single-family homes, show a similar trend. The median lease price in February 2025 is $2,100, down 4.1% from the previous year. Compared to its peak in August 2022, when median lease prices were at $2,568, the market has adjusted by roughly 18.2%. The decline in rental demand and an increase in available properties contribute to this shift, offering renters more negotiating power than in previous years.Comparing Multifamily vs. Single-Family Rental MarketsMultifamily properties, such as apartments, are seeing faster adjustments in pricing and vacancy rates. The vacancy rate for two-bedroom apartments climbed from 3.97% in late 2021 to 9.85% in early 2025, illustrating a market correction following the post-pandemic rental surge. As a result, landlords are adjusting pricing strategies, with apartment rent reductions averaging 2% year-over-year.In contrast, single-family rental properties maintain higher price stability but are not immune to market forces. The number of leased properties has decreased from 2,243 in February 2024 to 1,967 in February 2025, a 12.3% year-over-year decline. While rental price drops in single-family homes have been moderate compared to multifamily units, landlords in this segment are beginning to offer concessions such as lower security deposits or move-in incentives to attract tenants.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305063434.png" alt="" width="" height="" style=""></figure></div>Market Outlook: What’s Next for Renters and Landlords?The increase in available rental units and declining prices suggest that the market is moving toward a more tenant-friendly environment. Factors influencing this shift include new apartment constructions adding to supply, economic conditions affecting tenant affordability, and shifting migration patterns. Renters looking for new leases in 2025 will find more options and better negotiating leverage than in previous years.For landlords, the rising vacancies pose challenges in maintaining occupancy rates, particularly for multifamily properties. Those renting single-family homes may still benefit from relatively stable pricing but should be prepared for longer listing times and potential rent concessions to secure tenants.Frequently Asked Questions (FAQs)1. Why are Austin rent prices going down?&nbsp;Austin rent prices are declining due to increased vacancy rates, more new apartment developments entering the market, and economic factors reducing tenant demand. The oversupply of rentals allows renters to negotiate lower prices.2. Is it cheaper to rent an apartment or a single-family home in Austin?&nbsp;Apartments tend to be more affordable, with a median rent of $1,426 for a two-bedroom unit, whereas single-family homes average around $2,100 per month. However, single-family homes offer more space and amenities, making them preferable for larger households.3. Will Austin rent prices continue to drop in 2025?&nbsp;While rent prices have declined, the extent of further reductions will depend on supply levels and economic conditions. If vacancy rates remain high, landlords may continue lowering rents or offering incentives to attract tenants.&nbsp;

Austin's rental market is shifting in 2025, with rent prices declining for both apartments and single-family homes. Vacancy rates are rising, giving renters more options and negotiating power. Explore the latest trends in rent prices and market conditions

Austin Rental Market 2025: Are Rent Prices Dropping?

Austin Residential Income Property Market: A Data-Driven Analysis The Austin real estate market for residential income properties, including duplexes, triplexes, and fourplexes, has shown significant trends based on recent data. With 243 active listings, 54 pending sales, and 19 closed transactions over the past 30 days, understanding the market dynamics can help investors and sellers make informed decisions.Residential income properties provide multiple rental units within a single structure, making them attractive for both investors and owner-occupants. A duplex consists of two separate units, typically offering a cost-effective entry into real estate investment. A triplex expands the opportunity with three units, allowing for more rental income while maintaining residential zoning benefits. A fourplex provides the highest density among these property types, maximizing cash flow potential while remaining within the scope of conventional financing options.One of the key metrics used to assess market activity is the Activity Index, which is calculated by dividing the number of pending listings by the total number of active and pending properties. In Austin, the current Activity Index stands at 18.18%, derived from 54 pending listings out of a combined total of 297 active and pending properties. A lower Activity Index indicates a slower-moving market where fewer properties are transitioning to pending status. This suggests that supply currently outweighs demand, potentially giving buyers more negotiating power.Another crucial indicator is the Months of Inventory, which measures how long it would take to sell all active listings at the current sales pace. The formula for this metric divides active listings by the number of closed sales in the past 30 days. With 243 active properties and 19 sales, Austin’s residential income property market has approximately 12.79 months of inventory. This figure is well above the threshold for a balanced market, typically around 4 to 6 months, indicating a buyer's market where inventory levels exceed demand.Price trends further reinforce these market conditions. The median list price of active properties is $598,000, with an average price per square foot at $292. Pending listings, on the other hand, show a median price of $525,000, reflecting the fact that more competitively priced properties are attracting buyers. Closed sales over the past 30 days had a median price of $467,000, with an average price per square foot of $233. Additionally, the average closing price was 92.79% of the original list price, confirming that many properties are selling below their initial asking price. Sellers may need to adjust their expectations to align with market realities.The time on market also highlights a trend of extended selling periods. Active properties have been listed for an average of 129 days, while pending sales show a significantly shorter average of 59 days, indicating that well-priced properties move faster. Closed sales had an average of 63 days on market, showing that properties that do sell do so within a reasonable timeframe once they reach the right price point. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305080858.png" alt="" width="" height="" style=""></figure></div> For investors, the current market presents an opportunity to secure properties at more favorable terms, as high inventory levels suggest that sellers may be open to price reductions or incentives. Conversely, sellers need to consider pricing strategies carefully, as overpricing may lead to prolonged market exposure. The data suggests that properties listed below the median price are more likely to attract buyers and move to closing faster.The Austin residential income property market is currently characterized by high inventory, longer selling times, and declining sales prices. These trends create an environment where buyers have an advantage, while sellers must adapt to competitive pricing strategies to secure deals. As economic conditions evolve, monitoring key indicators like the Activity Index and Months of Inventory will be essential for making data-driven real estate decisions.​ FAQ Section 1. Is Austin a good market for investing in duplexes, triplexes, and fourplexes? Austin’s residential income property market currently favors buyers due to high inventory and declining prices. Investors can find opportunities to purchase properties at competitive prices, but understanding market trends is essential to making profitable decisions. 2. How do you calculate the Activity Index and why does it matter? The Activity Index is calculated by dividing pending listings by the sum of active and pending listings. It helps measure market demand, with a higher percentage indicating stronger buyer activity. In Austin, the current Activity Index of 18.18% suggests a slow-moving market. 3. What does Months of Inventory tell us about the Austin market? Months of Inventory measures how long it would take to sell all active listings at the current sales pace. Austin’s market currently has 12.79 months of inventory, indicating an oversupply of residential income properties, which gives buyers more leverage in negotiations.

Explore the latest data on Austin’s residential income property market, including duplexes, triplexes, and fourplexes. With insights into inventory levels, pricing trends, and market activity, this article provides a data-driven analysis for investors and sellers

Austin Residential Income Property Market: 2024 Data & Trends

Exploring Residential Real Estate Trends for Pending Properties in March 2025The residential real estate market in March 2025 offers a fascinating snapshot of homes listed as "Active Under Contract" and "Pending" across a dataset of 4,042 properties. This data, gathered from the Multiple Listing Service (MLS), reveals key details about property sizes, prices, and days on the market, providing a clear picture of what’s happening in the housing world right now. Whether you're a curious homeowner, a potential buyer, or just someone interested in real estate stats, this information breaks down the numbers in a way that’s easy to grasp and packed with specifics. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305125155.png" alt="" width="" height="" style=""></figure></div>​ Let’s start with the 1,722 properties marked as "Active Under Contract." These homes are in the process of being sold but haven’t finalized yet. The smallest home in this group has just 390 square feet, while the largest stretches to an impressive 11,998 square feet. On average, these properties measure 2,152 square feet, with a median size of 1,914 square feet, showing that most homes fall around this middle range. Bedrooms and bathrooms tell a similar story: the minimum is unspecified, but the maximum reaches 12 bedrooms and 10 bathrooms, while the average home has 3 bedrooms and 3 bathrooms, with a median of 3 bedrooms and 2 bathrooms. Lot sizes vary widely too, from tiny plots to massive ones covering 2,687,652 square feet, though the average lot is 32,049 square feet, and the median is a more modest 8,296 square feet—or about 0.19 acres.Pricing for these "Active Under Contract" homes is just as diverse. List prices range from a low of $66,000 to a high of $9,999,000, with an average of $638,552 and a median of $450,000. When you break it down by price per square foot, the range spans $59.75 to $2,019.35, averaging $285.40 and hitting a median of $237.22. The time these homes spend on the market, measured as Active Days on Market (ADOM), also varies: the longest is 748 days, the average is 76 days, and the median is 39 days. This suggests that while some properties linger, most move relatively quickly.Switching gears to the 2,320 homes listed as "Pending," these properties have offers accepted and are closer to closing. Here, the smallest home is 405 square feet, and the largest tops out at 8,136 square feet. The average size is 2,187 square feet, with a median of 2,035 square feet—slightly larger than the "Active Under Contract" group. Bedrooms range up to 12 and bathrooms up to 9, with averages of 4 bedrooms and 3 bathrooms, and medians of 4 bedrooms and 3 bathrooms. Lot sizes in this category are striking, with one property sitting on an enormous 420,092,640 square feet (over 9,644 acres), though the average is 204,184 square feet, and the median drops to 6,767 square feet, or roughly 0.155 acres.For "Pending" homes, list prices start at $49,900 and climb to $7,900,000. The average list price is $522,518, and the median is $410,299—lower than the "Active Under Contract" group, hinting at different market segments. Price per square foot ranges from $17.74 to $2,038.79, with an average of $236.65 and a median of $208.24, showing a tighter spread than the other category. Days on the market here range up to 823 days, with an average of 83 days and a median of 54 days, indicating that "Pending" homes tend to take a bit longer to reach this stage compared to their "Active Under Contract" counterparts.When you combine all 4,042 properties—both "Active Under Contract" and "Pending"—the trends become even clearer. The smallest home is 390 square feet, and the largest is 11,998 square feet, with an average of 2,172 square feet and a median of 1,997 square feet. Bedrooms max out at 12 and bathrooms at 10, averaging 4 bedrooms and 3 bathrooms, with a median of 3 bedrooms and 3 bathrooms. Lot sizes span from nearly zero to 420,092,640 square feet, averaging 130,850 square feet and a median of 7,362 square feet (about 0.169 acres). List prices range from $49,900 to $9,999,000, with an average of $571,952 and a median of $424,992. Price per square foot stretches from $17.74 to $2,038.79, averaging $257.41 and hitting a median of $218.18. Finally, ADOM ranges up to 823 days, with an average of 80 days and a median of 47 days.This data paints a detailed picture of the residential real estate landscape as of March 4, 2025. Homes vary widely in size, price, and time on the market, but averages and medians show a market centered around moderately sized homes with list prices in the mid-$400,000s to high-$500,000s. Whether a home is "Active Under Contract" or "Pending," these stats offer a window into what buyers and sellers are navigating right now, reflecting a dynamic and varied housing market.&nbsp; <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305125249.png" alt="" width="" height="" style=""></figure></div>​

Discover the latest residential real estate trends for March 2025, with detailed MLS data on home sizes, list prices, and days on market for 4,042 properties. Explore averages, medians, and ranges for 'Active Under Contract' and 'Pending' homes

March 2025 Pending Real Estate Report: Prices, Sizes, and Days on Market

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