Austin

TXAustin-Round Rock-San Marcos

Real Estate Market Analysis

Q3 2025 Report
$449,900 (May 2025)
Median Home Price
~2.3 million (metro area)
Population
~$89,000 (Austin metro, 2024 estimate)
Median Income
Austin ISD: B+ to A- (Niche 2024); Eanes ISD and Lake Travis ISD: A+
School District Rating

Market Overview

Property Values

$449,900 (May 2025)
Median Home Price
Not specified (but prices remain above national average)
Price per Sq Ft
-1.6% (May 2025 vs. May 2024)
YoY Change

Market Performance

Days on MarketNot specified (but rising due to increased inventory)
Market TypeTransitioning to buyer's market (inventory and supply rising, sales and prices softening)
Months of Supply5.0-5.65 (May 2025, up from 4.0 a year ago)

Sales Activity

Sales Volume1,328 homes sold in May 2025 (-3.7% YoY); 3,021 total sales in May 2025; 2,461 closed sales in March 2025 (-9.3% YoY); 2,187 closed sales in April 2025 (-27.1% YoY)
Metro AreaAustin-Round Rock-San Marcos
Population~2.3 million (metro area)

Economic Indicators

Employment & Growth

Unemployment Rate~3.6% (Austin metro, early 2025 estimate)
Job Growth Rate~2.5% (2024-2025 estimate)
Median Household Income~$89,000 (Austin metro, 2024 estimate)

Major Employers

  • Dell Technologies
  • Apple
  • Tesla
  • Oracle
  • Samsung
  • University of Texas at Austin
  • IBM
  • Amazon

Demographics

~2.3 million (metro area)
Population
34.7 years (metro area)
Median Age
~2% annually (2023-2025, slowing from pandemic peak)
Population Growth
Highly educated; 50%+ with bachelor’s degree or higher (metro area)
Education Level

Family Composition

Mix of young professionals, families, and retirees; strong in-migration of tech workers

Key Industries

TechnologySemiconductorsEducationHealthcareGovernmentCreative/Media

Education

School District

Austin ISD: B+ to A- (Niche 2024); Eanes ISD and Lake Travis ISD: A+
District Rating

Top Schools

  • Westlake High School (Eanes ISD)
  • Liberal Arts & Science Academy (Austin ISD)
  • Lake Travis High School

Higher Education

  • University of Texas at Austin
  • St. Edward’s University
  • Concordia University Texas

Infrastructure & Development

Major Projects

  • Project Connect (light rail and transit expansion)
  • Tesla Gigafactory expansion
  • Samsung semiconductor plant (Taylor, metro area)
  • Downtown mixed-use developments

Transportation

  • Light rail (Project Connect)
  • Highway expansions (I-35, US 183)
  • Airport terminal expansion

Planned Developments

  • Mixed-use communities in East and North Austin
  • Suburban master-planned communities

Lifestyle & Amenities

Recreation

  • Lady Bird Lake
  • Barton Springs Pool
  • Zilker Park
  • Hill Country hiking/biking

Dining & Entertainment

  • Downtown Austin music venues
  • South Congress restaurants
  • Food truck parks

Cultural Attractions

  • SXSW
  • Austin City Limits
  • Blanton Museum of Art
  • Texas State Capitol

Investment Analysis

Investment Opportunities

  • Rising rental demand due to population growth
  • Discounted purchase opportunities as prices correct
  • Strong tech sector attracting high-income renters

Growth Outlook

Moderate; correction phase likely to continue through 2025, with stabilization possible in late 2025 or 2026

Market Risks

  • Further price declines if inventory continues to rise
  • Affordability constraints for buyers
  • Potential for overbuilding in some submarkets

Rental Market

Strong demand, especially for single-family and Class B/C multifamily; rents stabilizing after rapid growth

Marketing Intelligence

Target Demographics

  • Tech professionals (25-44)
  • Young families
  • Remote workers
  • Investors seeking rental income

Marketing Channels

  • Zillow/Realtor.com
  • Social media (Instagram, Facebook)
  • Google Ads
  • Local relocation networks

Pricing Strategies

Price slightly below recent comps to attract buyers in a competitive market

Common Objections & Response Strategies

Objection: Mortgage rates are too high.

Response Strategy:

Show historical context, offer lender buy-down or ARM options, and highlight potential for refinancing later.

Objection: Prices may fall further.

Response Strategy:

Present data on market stabilization, emphasize long-term value, and discuss cost of waiting if rates rise.

Objection: Too much inventory—can I get a better deal later?

Response Strategy:

Highlight unique features, negotiate incentives, and explain risks of missing out on best-fit properties.

Professional Recommendations

1

Advise sellers to price realistically and prepare for longer days on market.

2

Educate buyers on negotiation leverage and financing options.

3

Target marketing to tech professionals and families relocating for jobs.

4

Monitor inventory and price trends closely to identify best timing for clients.

5

Highlight Austin’s long-term fundamentals despite short-term correction.

Competitive Analysis

Comparable Markets

  • Dallas-Fort Worth
  • Houston
  • Denver
  • Phoenix

Market Positioning

Austin is transitioning from a high-growth, high-price market to a more balanced, opportunity-rich environment for buyers and investors.

Competitive Advantages

  • Strong tech sector
  • High quality of life
  • Cultural amenities

Price Comparison

Austin median prices remain above national average but are now lower than peak 2022 levels and more competitive with other Texas metros.

Investment Metrics

4.5%–5.5% (multifamily, 2025 estimate)
Cap Rates
~4.2% (single-family, metro average)
Rental Yields
~23 (2025, indicating moderate investor opportunity)
Price-to-Rent
Improving as prices soften and rents stabilize; best in suburban/exurban submarkets
Cash Flow
Flat to +2% through 2025; stronger growth possible in 2026 as market stabilizes
Appreciation

Buyer Journey Insights

First-Time Buyers

More options and less competition, but affordability remains a challenge; down payment assistance and rate buydowns can help.

Move-Up Buyers

Easier to sell existing home if priced competitively; more leverage on new purchase.

Downsizers

Can find value in smaller homes or condos; less urgency, more negotiating power.

Investors

Opportunities in value-add and rental properties; focus on cash flow and long-term appreciation.

Relocators

Still attracted by jobs and lifestyle; need guidance on neighborhood selection and school quality.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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