Whether you’re an experienced real estate investor or new to the game, you may find the Austin real estate investing market one of the most fascinating and dynamic in the United States.
Real estate in the Austin metropolitan area that includes Round Rock and Georgetown, Texas, has undergone a significant evolution, transitioning through spurts of growth, a price explosion fueled by the pandemic and now a period of stabilization teetering on correction.
Median Austin home prices shot up 87% from 2014 to 2023, but they have been trending down since hitting a peak.
To make informed investment decisions, you must understand the trends and current dynamics of Austin’s real estate market. Here’s a peek at the numbers and trends that make the Austin market one of the most intriguing for investors.
Current Austin Market Overview 2025
- Median home price: $430,000 in June 2025; a 2.3% decrease year-over-year
- Average home value: $536,565, reflecting a 5.5% decrease over the past year
- Active listings: 17,168 in June 2025; a 6.1% increase from June 2024
- Homes sold: 2,873 in April 2025; down 13.8% year-over-year
Rental Market Trends in Austin
Austin has one of the highest rates of renters in the country. A little more than 46% of Austin residents rent, compared to about 54% who own homes. As in other U.S. cities, many Austin residents choose to rent because of affordability.
Similar to the single-family home market, the rental market saw prices increase through 2022 and begin to back off. In May, a Redfin analysis tagged the Austin metropolitan area with the largest drop in rent, with a 9% decrease year-over-year to $1,385. The median rent for a single-family house slipped 4.1% to $2,100 in February from the previous year and is down 18.2% from a peak of $2,568 in August 2022.
Starting with the pandemic, Austin began building single-family houses and multi-family apartments. Construction continues, although at a slower pace, so the Austin rental market is oversupplied for the level of demand.
However, those who watch the Austin real estate investing market aren’t showing much concern about the rental market crashing. Much like the housing market overall, the rental market is recalibrating.
Investment Opportunities
The Austin real estate investing market is evolving, but it remains an investor-friendly market. Nearly half of the residents in Austin rent, and 56% of homes are occupied by renters.
Because Texas and Austin provide rental market investors with favorable property tax rates, there’s an opportunity for home price appreciation. Also, the Austin rental market is driven by the diverse properties available to investors, including everything from downtown condos to suburban single-family homes to vacation rentals.
All combined, this sets up Austin as a metro area where rental property investors can deploy short- and long-term investment strategies to profit from monthly rents and property appreciation.
The Austin metropolitan area also offers a diverse range of neighborhoods. Emerging neighborhoods that have growth opportunities include East Austin, Leander, Georgetown, Kyle, Pflugerville, Mueller and others.
Economic and Demographic Factors
Austin proper has a population of nearly 1 million, and the metropolitan statistical area (MSA) is just under 2.4 million residents. The region has experienced explosive growth over a couple of decades and appears poised for more, even if at a slower pace.
Dubbed “Silicon Hills,” Austin continues to grow as a major hub of technology, as companies such as Tesla, Oracle, Meta, Google, Apple and Amazon draw workers fleeing more expensive cities like San Francisco for city life on a smaller tab. Tech jobs make up 16.3% of all positions, compared to just 9% nationally. The average annual salary for these tech jobs is $135,000.
To accommodate the current and expected growth, Austin government leaders are building the infrastructure to handle the influx of residents and keep the city vibrant. Project Connect is a multi-billion dollar expansion of the light rail and bus systems. Additionally, the city is widening highways, improving intersections and installing bike lanes and pedestrian paths.
Infrastructure improvements extend to public services and utilities, with the city investing in parks and libraries, addressing water scarcity with conservation and upgrading electrical infrastructure.
Risks and Considerations
Many factors lean in favor of Austin. Still, in the Austin housing market 2025 and beyond, investors may face headwinds: high mortgage rates, market oversaturation, a slowing economy and job market or possible inflation or recession.
In June, the national average on a 30-year fixed-rate mortgage rose to 6.97%. While home prices have fallen in Austin, mortgage rates hovering just under 7% may keep some buyers on the sidelines because of affordability or the impact the rate might have on Austin property investment returns.
Austin’s housing inventory is near an all-time high. And despite the strength of Austin’s diversified economy and continued population growth, more houses are sitting unoccupied, and potential buyers seem reluctant to make any moves amid tariff-induced economic uncertainty.
Inflation for the 12 months that ended in April 2025 was 2.3%, still well above the Federal Reserve’s target of 2% and a potential factor in investors’ thinking about what may be ahead as a result of tariffs. And while the unemployment rate remains low, private sector hiring ground to a near standstill in May.
These factors could play a significant role in the future of Austin’s housing market.
Consider the Austin Real Estate Investing Market
The Austin real estate market is shifting after several years of skyrocketing housing prices. Many in the real estate industry believe cooling prices to be a correction, establishing the new normal for the Austin market to continue growing at a reasonable rate.
For you, the investor, the supply-demand imbalance provides opportunities as the tech industry and the area’s lively culture remain poised to continue drawing new residents to the Austin area.
Frequently Asked Questions
Is Austin still a good place to invest in real estate?
Yes, Austin is still considered a good place to invest in real estate because of its booming population growth, inviting cultural scene and thriving economy. The metropolitan area of Austin-Round Rock-Georgetown, Texas, is the fastest-growing metro area in the U.S. Austin is known for its arts and music scene, and the metro area is home to such tech giants as Dell, IBM, Apple, Google and Amazon.
Are real estate prices dropping in Austin, Texas?
Houses sold in Austin hit a median high of $549,634 in May 2022 and have been on the decline since, with the median price of a single-family home in June 2025 having dropped 17.27% from the peak to $455,000. Latest data indicates falling prices are likely to continue for the rest of 2025, with housing inventory continuing to rise and buyers continuing to stay away.
What is the outlook for Austin real estate in 2025?
Through the beginning of 2025, Austin real estate trends show the market cooling as inventory continues to climb and buying slows. With listings outpacing pending sales and listing times lengthening, Austin is undergoing a market correction, creating a buyer’s market, leaving behind the unsustainable gains that followed the 2020 pandemic, and presenting a market restructuring expected to last through at least 2029.
