Austin, January 21, 2026
Austin’s housing market is evolving, transitioning from a seller’s market to a more balanced environment with a decrease in home prices and an increase in inventory. The average home value is now $466,628, down 1.2% from last year. Suburban areas are growing, offering more affordable options. The rental market remains favorable for tenants, and the luxury segment is showing signs of cooling with longer selling times. These dynamics offer both opportunities and challenges for buyers and sellers in the market.
Austin’s Housing Market: Trends and Insights in 2026
Austin’s housing market has experienced notable shifts in recent years, transitioning from a seller’s market to a more balanced environment. This change is characterized by a decrease in home prices, an increase in inventory, and evolving buyer dynamics.
Current Market Dynamics
As of January 2026, Austin’s average home value stands at $466,628, reflecting a 1.2% decrease from the previous year. This decline is attributed to a surge in construction, which has elevated home inventory by 37% compared to pre-pandemic levels. The influx of new homes has provided buyers with more options, contributing to the cooling of the market.
Suburban Growth and Affordability
Suburban areas surrounding Austin, such as Round Rock, Leander, and Pflugerville, have seen significant population growth and rising home prices. These cities offer more affordable housing options compared to Austin’s urban core, attracting many residents seeking cost-effective living.
Rental Market Trends
The rental market in Austin remains favorable for tenants. As of July 2025, the median asking rent for 0-2 bedroom units is $1,460, which is 5.3% lower than a year ago and well below the national median of $1,712. Renting continues to be more affordable than purchasing a starter home, with the cost of buying exceeding renting by $1,683 per month.
Population Growth and Housing Demand
Austin’s population has been steadily increasing, with a 3.4% growth rate over the past five years. This population surge has intensified housing demand, leading to higher home prices and rents. The city’s appeal to tech firms and creative talent continues to drive its rapid expansion.
Luxury Market Overview
The luxury housing segment in Austin remains robust. The 90th percentile listing price is $1.32 million, about 5.8% higher than the national benchmark of $1.24 million. However, the number of million-dollar listings has decreased by 1.7% year over year, indicating a slight cooling in this segment. Luxury homes are also taking longer to sell, with median days on market up 4.4% year over year.
Conclusion
Austin’s housing market is undergoing significant changes, with cooling home prices, increased inventory, and shifting buyer preferences. While the market remains dynamic, these trends suggest a move towards a more balanced environment, offering opportunities for both buyers and sellers.
Frequently Asked Questions (FAQ)
What is the current average home value in Austin?
The average home value in Austin is $466,628, reflecting a 1.2% decrease from the previous year.
Which suburban areas around Austin are experiencing significant growth?
Suburban areas such as Round Rock, Leander, and Pflugerville have seen significant population growth and rising home prices, offering more affordable housing options compared to Austin’s urban core.
How has the rental market in Austin changed recently?
The rental market remains favorable for tenants, with median asking rents for 0-2 bedroom units at $1,460, which is 5.3% lower than a year ago and below the national median of $1,712. Renting continues to be more affordable than purchasing a starter home.
What is the growth rate of Austin’s population?
Austin’s population has grown by 3.4% over the past five years, contributing to increased housing demand and higher home prices and rents.
How is the luxury housing market performing in Austin?
The luxury housing segment remains robust, with the 90th percentile listing price at $1.32 million, about 5.8% higher than the national benchmark. However, the number of million-dollar listings has decreased by 1.7% year over year, and luxury homes are taking longer to sell, with median days on market up 4.4% year over year.
| Feature | Details |
|---|---|
| Average Home Value | $466,628, a 1.2% decrease from the previous year. |
| Suburban Growth | Significant population growth and rising home prices in Round Rock, Leander, and Pflugerville. |
| Rental Market | Median asking rent for 0-2 bedroom units is $1,460, 5.3% lower than a year ago. |
| Population Growth | 3.4% increase over the past five years, contributing to higher housing demand. |
| Luxury Market | 90th percentile listing price at $1.32 million, with a 1.7% decrease in million-dollar listings year over year. |
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Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
