Austin Real Estate in 2025: Why It’s a Buyer’s Market (But Selling Is Tougher Than You Think)

If you’ve been keeping an eye on the Austin housing market, you’ve probably noticed something: there are a lot of homes for sale right now. More than we’ve seen in years. If you’ve been thinking about buying, this is good news. More inventory means more options, more negotiating power, and in many cases, better prices.But what if you’re on the other side of the equation—what if you bought in the last few years and are thinking about selling? That’s where things get tricky.

Let’s break it all down in simple terms.

Why There Are So Many Homes for Sale in Austin Right Now

The Austin market has changed dramatically since the home-buying frenzy of 2021-2022. Back then, houses were getting multiple offers the day they hit the market, and prices were skyrocketing. Now, things are different.

• Mortgage rates are much higher than they were in 2021-2022, which means people can afford less house for the same monthly payment.
  
• Many people who bought during that time can’t sell for a profit right now because home values have stabilized (or even dipped slightly) after the pandemic-driven boom.
  
• A lot of new construction has hit the market, which means buyers have more choices than ever before.
  

Put all of that together, and it’s no surprise that homes are sitting on the market longer, and buyers have the upper hand in negotiations.

If You Bought in Austin Between 2021-2024, Selling Now Might Be a Tough Call

Let’s say you bought a home in 2021, 2022, or even early 2023. If you’re hoping to sell today and walk away with a big profit, you might be in for a surprise.
Why? Because the rapid appreciation we saw during the pandemic has slowed, and home values aren’t climbing like they used to. On top of that, buyers today are facing higher mortgage rates, which means they have to be more selective.
If you bought at the peak of the market, there’s a good chance you’d have to sell for about what you paid—or maybe even less—after factoring in closing costs and commissions.

Austin-Round Rock MSA Residential Sales Overview

How Higher Mortgage Rates Have Changed Affordability

One of the biggest factors shaping today’s market is mortgage rates. Let’s put some real numbers to it.
Imagine you were shopping for a home in 2021. You found a great house for $600,000 and put 20% down. At that time, the average mortgage rate was around 3%.

• Your monthly payment? $3,222.08 (not including taxes and insurance).
  

Fast forward to today. That same $600,000 home at today’s 7% interest rate means:

• Your monthly payment is now $4,260.12.
  

That’s over $1,000 more per month—just because of interest rates.
This is why a lot of people who locked in a low rate don’t want to move. Even if they need a bigger house or want to relocate, taking on a much higher monthly payment makes them hesitate. That’s also part of why inventory is high—many sellers list their homes, but they aren’t motivated to drop their prices much, because they don’t really need to move.

Why More People Are Choosing to Rent Instead of Buy

If you’re thinking about buying but aren’t sure if now is the right time, you’re not alone. One reason? Rent prices are going down.
With so many apartments and rental homes hitting the market, landlords are having to compete for tenants. That means:

• More lease incentives (like one or two months free).
  
• Lower rental prices in many areas of Austin.
  
• More choices for renters who don’t want to rush into a home purchase.
  

For some people, this makes renting more attractive. Why buy a home with a high mortgage payment when you can rent something similar for less?

Why I’m Bullish on Austin’s Long-Term Real Estate Market

While today’s market may feel uncertain, I believe in Austin’s long-term growth. The short-term affordability challenges don’t change the fact that Austin is still one of the most desirable cities in the country, with strong economic fundamentals backing its future.
Major infrastructure and employment projects will continue to fuel demand:

• Project Connect Light Rail – Expanding public transit options.
  
• ABIA Airport Expansion – Increasing capacity for growth.
  
• UT Austin Medical Center – A $2.5B investment in medical innovation.
  
• Samsung Expansion – Potentially growing into a $45B investment in the region.
  
• Convention Center Redevelopment – Transforming Austin’s tourism and event landscape.
  

With tech, clean energy, life sciences, and AI companies expanding in the region, job creation remains strong—and where there are jobs, there will always be housing demand.

The Bottom Line: Should You Buy Now or Wait?

So, what does all of this mean for you?

• If you’re a buyer: This is one of the best times in years to negotiate a great deal. There are more homes to choose from, and sellers are much more flexible than they were a couple of years ago. If you’re planning to stay in the home long-term, buying now could be a smart move—especially if mortgage rates drop in the future and you can refinance.
• If you’re a seller: Be prepared for a slower market. Pricing your home right from the start is key, because buyers have a lot of options. If you’re not in a rush to sell, you might consider waiting until the market shifts again.

The Austin real estate market is in a reset mode, but that’s not necessarily a bad thing. Whether you’re buying, selling, or waiting, understanding the numbers and market trends will help you make the right decision.
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And in the long run? Austin remains one of the strongest real estate markets in the country. The fundamentals are still there—job growth, infrastructure investment, and a desirable quality of life. That’s why I remain confident in Austin’s future.