Housing Affordability in Austin, Texas: What Home Buyers Need to Know

Housing affordability has been a hot topic in the real estate market, especially in growing cities like Austin, Texas. With rising home prices and fluctuating mortgage rates, many potential home buyers wonder: Is it still possible to afford a home in Austin? At Holley Homes Realty, led by Brandon Holley, we’re committed to helping buyers navigate the local housing market and find homes that fit their budget and lifestyle.

In this guide, we’ll break down housing affordability in Austin, Texas, provide insights on financing options, and offer tips to make homeownership a reality—even in a competitive market.

Housing affordability refers to whether a household can comfortably purchase or rent a home without overextending its finances. Traditionally, housing is considered affordable if a household spends no more than 30% of its gross monthly income on housing costs, including mortgage payments, property taxes, and insurance.

Austin has seen rapid home price increases over the past decade, driven by high demand, an influx of new residents, and a thriving job market. According to recent market reports:

• The median home price in the Austin area is around $430,000 (as of 2025), making affordability a concern for first-time buyers.
• Mortgage rates fluctuate between 6-7 %, affecting monthly payments and overall affordability.
• Housing inventory remains tight, meaning competition is strong, especially in desirable neighborhoods.

Despite these challenges, homeownership in Austin is still possible, especially with the right financing strategies, local incentives, and expert guidance from an Austin real estate agent like Brandon Holley.

While home prices remain high, they are stabilizing compared to previous years. Buyers may find opportunities in emerging neighborhoods or new construction communities that offer competitive pricing and builder incentives.

Interest rates significantly impact affordability. A 1% increase in mortgage rates can add hundreds of dollars to monthly payments. Working with a trusted lender to lock in afavorable interest ratecan make a big difference in affordability.

Texas has no state income tax, but property taxes are higher than the national average. Understanding tax rates in different Austin neighborhoods can help buyers plan accordingly.

Several programs can help first-time buyers afford a home in Austin, including:

• Texas State Affordable Housing Corporation (TSAHC) down payment assistance
• Austin Affordable Housing Program
• FHA and VA Loans with lower down payment options

    Navigating the Austin real estate market requires local expertise. At Holley Homes Realty, we provide personalized guidance to help buyers find homes that meet their budget and lifestyle.

    A mortgage pre-approval helps buyers understand their budget and strengthens their offer in a competitive market.

    Many new construction communities in Austin offer incentives such as lower interest rates, closing cost assistance, and builder discounts.

    Affordability increases in areas just outside Austin, such as:

• Manor
• Buda
• Pflugerville
• Cedar Park

Yes! While affordability is a challenge, buyers can still find great opportunities in the Austin market. Brandon Holleyand, the team at Holley Homes Realty, is here to guide you through the home-buying process and help you find the best deals.

If you’re considering buying a home in Austin, Texas, let’s talk! Contact us today to start your home search.

Call: 512.487.9242

Email: brandon@holleyhomesrealty.com

Visit: www.holleyhomesrealty.com

Looking for an affordable home in Austin, Texas? Learn about the current market, financing options, and expert tips from Brandon Holley, an experienced real estate agent at Holley Homes Realty. Call today!