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Wondering if 2025 is the year to buy property in Austin? The data speaks for itself.
Read this article to discover the 10 stats that show why Austin is the place to invest. Thinking about making your move? Use our Austin investment spreadsheet to evaluate potential profitability and maximize your returns.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Austin's median home prices are dropping, with a 2.7% decline expected by July 2025, making it a buyer's market
In 2024, Austin's median home prices declined, with a forecasted additional drop of 2.7% by July 2025, signaling increased market accessibility.
This trend offers potential buyers more affordable options and negotiating power, making it an opportune time to invest.
The anticipated price drop in 2025 enhances affordability, suggesting a strategic opportunity for first-time buyers or those looking to upgrade.
Austin's market dynamics present a promising opportunity for property buyers.
Sources: Norada Real Estate Investments, Austin Board of Realtors
- Why is Austin turning into a buyer’s market in 2025?
2) Austin home prices are set to drop 2.1%, according to another forecast
Austin home prices are expected to decline by 2.1% from August 2024 to August 2025, according to Zillow.
This decrease indicates a buyer's market, offering less competition and more negotiation opportunities.
The cooling trend follows years of rapid growth, presenting a chance for buyers to secure better deals and expand their portfolios.
With potentially lower costs and interest rates, 2025 is a promising time to invest in Austin property, as future market stabilization could lead to appreciation.
Sources: Home Buying Institute, Zillow
3) Austin's housing inventory hit a 13-year high at 4.9 months, offering buyers more choices and stable prices
By mid-2024, Austin's housing inventory reached 4.9 months, the highest in 13 years, indicating a shift to a more balanced market.
This increase offers buyers a wider selection and reduces competitive pressure, easing the buying process.
Previously, high demand and limited supply drove up prices, but the current inventory increase aligns supply and demand, stabilizing prices.
Consequently, 2025 is a favorable time to buy property in Austin, with more options, reasonable pricing, and negotiation opportunities, making it an ideal time to invest.
Source: Austin Board of Realtors
4) Austin homes sold for 95.46% of their asking price, making 2025 a prime time for buyers to snag deals
In April 2024, Austin homes sold for 95.46% of their asking price, with 60.4% selling below list price, indicating a buyer-favorable market.
This shift suggests a cooling in Austin's real estate scene, offering buyers more negotiation power and potential savings.
With this trend likely to continue, 2025 appears to be an ideal time to buy property in Austin, providing opportunities to secure homes at reasonable prices and reducing the risk of overpaying.
Source: Seely Group
5) Austin's rental market occupancy hit a low of 92.5%, giving buyers more choices and negotiating power
In 2024, Austin's rental market occupancy dropped to 92.5%, the lowest since 2010, indicating a surplus of rental properties.
This surplus can reduce rental income, leading some landlords to sell.
As more properties enter the market, housing inventory rises, offering buyers more choices and negotiating power.
These conditions make 2025 an opportune time to buy property in Austin, with increased inventory and better pricing opportunities favoring buyers.
Sources: Housingwire, RealPage
- Why is Austin one of the best places to start an Airbnb in 2025?
6) Homes in Southwest Austin and Dripping Springs saw a 95% increase in days on market
In October 2024, homes in Southwest Austin and Dripping Springs experienced a significant rise in average days on market (DOM), with some areas seeing over a 95% increase from the previous year.
This longer DOM gives buyers more negotiation power, as sellers may lower prices or offer concessions to close deals.
This trend indicates a shift towards a buyer's market, where supply may exceed demand, allowing buyers to explore options and negotiate better terms.
Consequently, 2025 is a favorable time to buy property in Austin, offering opportunities for strategic investments with potentially lower prices.
Sources: Community Impact, Austin Board of Realtors
7) The Project Connect Light Rail System makes Austin's market even more promising
In 2025, Austin's property market is promising, driven by the upcoming Project Connect Light Rail System.
Although construction for the Blue and Orange Lines starts in 2027, anticipation is already boosting interest.
By 2033, when operational, properties along these corridors are expected to increase in value.
Investing in Austin real estate in 2025 offers a chance to get ahead.
The light rail will enhance city connectivity, making areas along the lines more accessible and desirable, likely increasing property demand.
Buying property before construction begins positions investors to benefit from future value rises, making 2025 a strategic time to invest in Austin's real estate market.
Sources: Community Impact, Austin Transit Partnership
8) The Capital Express project to expand I-35 in Austin is set to boost property values
The Texas Department of Transportation's Capital Express project aims to expand I-35 through Austin, with construction starting as early as summer 2024 and lasting about a decade.
This includes managed lanes and potential public spaces, improving traffic flow and accessibility.
These changes are expected to boost the local real estate market by attracting more residents and businesses, increasing property demand, and enhancing neighborhood desirability along the I-35 corridor.
The project presents a favorable investment opportunity in 2025, as infrastructure improvements are likely to drive up property values, offering significant returns.
Source: Wikipedia
9) Austin's employment surged 6.2%, especially in leisure and hospitality,
In September 2024, Austin's employment grew by 6.2% annually, especially in leisure and hospitality, signaling a strong local economy.
This job growth attracts new residents, increasing housing demand and potentially boosting property values.
Current property prices remain stable, offering a chance for buyers to invest before demand raises prices.
Thus, 2025 is an ideal time to invest in Austin real estate, with employment growth likely leading to future property value appreciation.
Source: Federal Reserve Bank of Dallas
10) Austin's average hourly wage of $34.72 is climbing
In September 2024, Austin's average hourly wage was $34.72, with a three-month moving average increasing at an annualized rate of 2.8%.
This wage growth enhances residents' purchasing power, making homeownership more attainable and reflecting a strong local economy.
Higher wages increase housing demand, potentially raising property values and making real estate a lucrative investment.
Prospective buyers may benefit from appreciating home values and competitive mortgage rates.
With rising wages and a robust economy, 2025 is a favorable time to buy property in Austin, as demand and property values are expected to remain strong.
Source: Federal Reserve Bank of Dallas
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So, is 2025 the year to buy property in Austin? Absolutely, it is!
2025 presents a golden opportunity for property buyers in Austin. The data clearly shows a favorable shift towards a buyer's market.
With median home prices expected to drop by 2.7% by July 2025, and another forecast predicting a 2.1% decline, buyers will find more affordable options and increased negotiating power. The housing inventory has hit a 13-year high at 4.9 months, offering more choices and stable prices.
Additionally, homes are selling for 95.46% of their asking price, with a significant portion selling below list price, further enhancing buyer leverage. The Project Connect Light Rail System and the Capital Express project are set to boost property values, making early investments strategic.
With Austin's employment surging by 6.2% and average hourly wages climbing, the local economy is robust, increasing housing demand and potential property value appreciation. All these factors make 2025 an ideal time to invest in Austin real estate.