Are home prices dropping or increasing in Austin in 2025?

Austin's real estate market has been an attraction for buyers, sellers, and investors in recent years, driven by high population growth, a thriving tech industry, and a lively cultural life. As 2025 unfolds, people are wondering: Are home prices going down or up in Austin in 2025? This blog takes a deep dive into the most recent data, neighborhood trends, and expert predictions to give a good insight into Austin's housing market this year.

As of early 2025, Austin, Texas, has experienced a significant decline in rental prices. According to Austin Cleaning Service, the median asking rent in Austin dropped by 22% from its peak in August 2023, now standing at approximately $1,399 per month.

Recent Trends in Austin Home Prices

The Austin housing market has experienced significant shifts since its height in 2022. Median housing prices reached a high of approximately $550,000 in mid-2022 but have since eased. To date in early 2025, median prices have stayed close to $409,000, down about 25.6% over 32 months. Prices have fallen about 4.1% year-over-year, which indicates a cooling market following years of accelerated appreciation.

Yet this fall is not consistent throughout the city. Central and more walkable neighborhoods, in particular, have experienced modest price appreciations or stabilization. Median listing prices during early 2025, for instance, are approximately $545,000, rising 2.3% year on year in some core neighborhoods, as new demand and improvements in infrastructure are evidenced.

Austin's housing market is very localized. High-end and high-demand communities like zip codes 78733 (Travis County) and 78732 (Steiner Ranch) have seen strong price growth—up 61.2% and 57% respectively between 2024 and early 2025. These markets appeal to higher-end buyers seeking upscale amenities and natural attractions.

On the other hand, a few neighborhoods experienced rapid price adjustments. For example, zip code 78736 fell 37.6%, and 78734 fell 28.6%, demonstrating market correction after past overvaluation. The East Austin neighborhoods of zip codes 78702 and 78723 remain robust with 13.2% and 14.9% growth rates fueled by city revival and attractiveness to young professionals.

Suburban and rural areas around Austin, like Florence (76527) and Smithville (78957), have also experienced high price appreciation, showing a trend of preference for less expensive and less dense living space.

Supply, Demand, and Market Dynamics

Inventory levels are up dramatically, as active listings rose 21% from a year ago, driving months of inventory to 5.65. This represents a shift toward a more balanced or buyer's market than the seller's market of the past few years.

Volume sales have slowed down, with concluded transactions decreasing over 27% from last year. Houses remain on the market longer, staying listed for approximately 44 days on average, and fewer homes sell for more than the asking price (36%).

Price Per Square Foot and Home Size Trends

The median price per square foot in Austin is around $327, up 3.5% year-over-year in central neighborhoods. Smaller houses (1-3 bedrooms) have experienced minor price drops, while larger houses (4-5+ bedrooms) have seen moderate price rises, indicating demand for family-sized houses.

Rental Market Impact on Home Prices

The rental market's sharp cooling—median rents falling 22%—has affected house prices. Falling rents lower the immediate financial strain on prospective buyers but also indicate a more cautious market overall. Multifamily building is also slowing, with new apartment deliveries expected to fall 60% in 2025, stabilizing rental supply.

Economic and Demographic Factors

Austin’s strong job growth, especially in tech and manufacturing sectors, continues to support housing demand. Population growth is projected at 11% through 2029, driven by domestic migration from higher-cost metros. These fundamentals suggest long-term resilience despite short-term price fluctuations.

Maintaining Your Property

Whether you rent or own in Austin, keeping a tidy and clean home is imperative. Apartment cleaning on a regular basis maintains property value and prevents unhealthy living conditions. Convenient professional services such as Sparkly Maid Orlando offer great cleaning solutions to facilitate upkeep and tenant satisfaction.

Planning for Moves and Transitions

If you're thinking about moving to Mexico or some other place, planning ahead is important. Coordinating your relocation and hiring Austin Cleaning Service for move-out cleaning can ensure that you depart your house in great shape and get the best possible return on your security deposit or resale.

Are home prices falling or rising in Austin in 2025? The answer is complicated. While overall median prices have fallen from record highs, some neighborhoods are stabilizing or even appreciating modestly. More inventory and slower sales have pushed the market toward balance, to the advantage of buyers and renters. By knowing these trends, taking care of your property with frequent apartment cleaning, and carefully planning your housing choices, you can make your way through Austin's changing real estate market with confidence.