The Austin housing market is still correcting. As of May 31, 2026, the Zillow Home Value Index for the Austin, TX metro stood at $421,326, down 5.7% from $446,608 a year earlier and roughly flat over the past three months [1]. Typical asking rents have also slipped, inventory sits near 15,000 active listings, and 28% of listings carried a price cut in May [1]. With the 30-year fixed mortgage rate at 6.49% in the week of June 25, 2026, the monthly cost of buying in Austin is lower than a year ago, but the market has not yet found a floor [2].
How much have Austin home values fallen?
Austin was one of the fastest-rising metros of 2020 and 2021 and has been the clearest example of a give-back since. The metro-wide typical home value (all homes, mid tier) was $421,326 in May 2026, compared with $446,608 in May 2025 and $438,116 in August 2025 [1]. The month-over-month move was small: $420,473 in April to $421,326 in May, a gain of 0.2% [1]. The 12-month decline therefore happened mostly in the second half of 2025, and the pace of decline has slowed in 2026.
The correction reaches every segment. The bottom third of the market fell to $299,061 from $317,596 (down 5.8%), the top third fell to $749,803 from $782,476 (down 4.2%), single-family homes fell 6.0% to $428,128, and condos fell 6.1% to $348,057 [1]. Median sale prices tell a similar story: $475,000 in May 2026 against $480,000 in May 2025, a 1.0% dip, which suggests that the homes actually changing hands are somewhat larger or better located than the typical home in the index [1].
What a buyer pays each month
Lower prices plus slightly lower rates have improved affordability. Zillow's estimated principal-and-interest payment on the typical Austin home with 20% down was $2,119 in May 2026, down from $2,341 in May 2025, a 9.5% reduction [1]. Adding taxes and insurance, the total monthly payment with 20% down was $3,068, versus $3,324 a year earlier [1]. The national 30-year fixed rate averaged 6.49% in the week ending June 25, 2026, after ranging between 6.36% and 6.53% since early May [2].
Austin rents and rent yield in 2026
Rents are falling too, which limits how much support the rental market can give to prices. The Zillow Observed Rent Index for all homes and apartments in the Austin metro was $1,608 in May 2026, 2.3% below the $1,645 recorded in May 2025 [1]. Apartments led the decline: multifamily rent fell 3.5% to $1,439, while single-family rent edged up 0.5% to $2,304 [1].
For investors, the gross rent yield is the first screen. Twelve months of single-family rent at $2,304 equals $27,653, or about 6.5% of the $428,128 typical single-family value [1]. Before taxes, insurance, vacancy and maintenance that is a workable number for a growth metro, but Texas property taxes take a large bite. DataPorium's property tax data shows median effective rates of about 1.0% in ZIP 78746 (West Lake Hills), 1.3% in 78704 and 78641 (Leander), 1.4% in 78744, 1.5% in 78660 (Pflugerville) and 1.9% in 78617 (Del Valle) [4]. A 1.4% tax rate alone consumes more than a fifth of gross rent at a 6.5% yield.
Inventory, days on market and price cuts
Supply is high by Austin standards but no longer rising. Active for-sale inventory was 15,016 homes in May 2026, down 7.2% from 16,178 in May 2025, though still 52% above the 9,855 listings of May 2019 and about three times the 5,071 seen at the February 2022 low [1]. Buyers have time: the median listing took 44 days to go pending in May 2026, compared with 41 days a year earlier and 38 days in April [1]. Sellers are adjusting, with 28% of listings showing a price cut in May 2026, against 31% in May 2025 [1]. Zillow's market heat index for Austin read 46 in May, down from 53 in March, a reading that describes a balanced-to-cool market [1].
- Active listings: 15,016 in May 2026, versus 16,178 in May 2025 [1]
- Median days to pending: 44, versus 41 a year earlier [1]
- Share of listings with a price cut: 28%, versus 31% a year earlier [1]
- Median sale price: $475,000, versus $480,000 a year earlier [1]
Which Austin ZIP codes are the most and least expensive?
Austin's price spread is wide, and it maps closely to distance from the urban core and the lake. The table shows Zillow's smoothed typical home value by ZIP code for May 2026, with the median effective property tax rate for each area from DataPorium [1][4].
| ZIP code | Area | Typical home value, May 2026 | Median effective property tax |
|---|---|---|---|
| 78746 | West Lake Hills / Westlake | $1,679,545 | 1.03% |
| 78703 | Tarrytown / Clarksville | $1,293,861 | 1.26% |
| 78731 | Northwest Hills | $1,001,389 | 1.22% |
| 78704 | South Austin / Zilker | $712,725 | 1.32% |
| 78641 | Leander | $431,154 | 1.30% |
| 78660 | Pflugerville | $372,013 | 1.49% |
| 78744 | Southeast Austin | $327,288 | 1.40% |
| 78617 | Del Valle | $289,458 | 1.89% |
The most expensive ZIP, 78746, is worth close to six times the least expensive, 78617, and it also carries the lowest effective tax rate in the group, partly because homestead caps hold assessed values below market on long-held homes [1][4]. Buyers priced out of the central ZIPs continue to look to Leander, Pflugerville and Del Valle, where typical values sit below the metro average. Investors can compare these and every other ZIP on DataPorium's housing market data, which carries Zillow values, rents and inventory at the state, metro, city and ZIP levels [1].
Population, income and what it means for buyers and investors
The demand side remains strong. The Census Bureau estimates the Austin-Round Rock-San Marcos metro population at 2,567,149 in 2024, up from 2,498,809 in 2023 and 2,300,172 in 2020, an 11.6% gain in four years [3]. Inside the city of Austin, the 2024 American Community Survey shows a median household income of $93,658 and a population of 979,539, with only 43.4% of households owning their home [4]. Population and incomes are growing while prices fall, which is the combination that eventually restores affordability without a policy fix.
Austin is a market where growing demand and falling prices are meeting in the middle, and the data says the correction has slowed but not ended.
For buyers, the practical reading is that inventory and price cuts give room to negotiate, and the monthly payment on the typical home is about 8% lower than a year ago [1]. The counterpoint is that values are still slipping year over year, so buyers who expect to move within two or three years carry more price risk than in a rising market. For investors, single-family gross yields near 6.5% look attractive next to many coastal metros, but the combination of falling rents and high property taxes means underwriting should assume flat rent for at least another year [1][4]. Zillow's rolling 12-month home value forecast for the metro is updated each month and shown next to the current values on the DataPorium market page [1]. Property-level detail is available through DataPorium's real estate module [4].
Key takeaways
- Austin's typical home value was $421,326 in May 2026, down 5.7% year over year but up 0.2% from April [1].
- Typical rent fell 2.3% to $1,608, with apartments down 3.5% and single-family rents up 0.5% [1].
- Inventory of 15,016 homes is 7.2% below a year ago but still about 50% above 2019 levels; 28% of listings had a price cut [1].
- The most expensive ZIP (78746) is valued near $1.68 million, the least expensive in the sample (78617) near $289,000 [1].
- Metro population grew 11.6% from 2020 to 2024, and the 30-year mortgage rate was 6.49% in late June 2026 [2][3].
Frequently asked questions
Are home prices dropping in Austin in 2026?
Yes. The Zillow Home Value Index for the Austin metro was $421,326 in May 2026, 5.7% below May 2025, although prices were roughly flat from March to May 2026 [1].
What is the average rent in Austin in 2026?
The typical asking rent across all homes and apartments in the Austin metro was $1,608 per month in May 2026, down 2.3% from a year earlier; the typical single-family rental was $2,304 [1].
Is Austin a buyer's market right now?
The indicators point that way: about 15,000 active listings, a median of 44 days to pending, 28% of listings with a price cut and a market heat index of 46 in May 2026 [1].
What is the most expensive ZIP code in Austin?
Among the ZIPs reviewed, 78746 (West Lake Hills) had the highest typical home value at about $1.68 million in May 2026, followed by 78703 at about $1.29 million [1].
Sources & References
- [1] DataPorium Housing Market Insights (Zillow ZHVI, ZORI, inventory and market data)
- [2] Freddie Mac via FRED: 30-Year Fixed Rate Mortgage Average in the United States (MORTGAGE30US)
- [3] U.S. Census Bureau via FRED: Resident Population in Austin-Round Rock-San Marcos, TX (MSA)
- [4] DataPorium Real Estate: property tax, demographics and neighborhood data
