Austin housing market : September 2025

As 2025 enters its final quarter, the Austin housing market continues to navigate a period of measured growth and renewed stability. The Unlock MLS September 2025 Housing Report paints a nuanced picture: home prices remain steady, sales volumes are up, and inventory continues to expand — all signs of a market rebalancing after several years of sharp fluctuation.

For both buyers and sellers, the data suggests that the Austin area is shifting from the extremes of the pandemic-era boom toward a more sustainable, opportunity-rich environment.

Market Snapshot at a Glance

September 2025 Sales Highlights (Austin–Round Rock MSA)

• Median Sales Price: $420,000 ⬇ 1.8% year-over-year
• Closed Sales: 2,416 ⬆ 6.7%
• New Listings: 3,327 ⬇ 5.7%
• Active Listings: 13,665 ⬆ 10.0%
• Months of Inventory: 5.7 (up 0.6 months)
• Sales Volume: $1.33 billion ⬆ 5.6%
• Average Days on Market: 76 days (up 5 days)
• Average Close-to-List Price: 91.6% (compared to 92.8% a year ago)

September 2025 Lease Highlights

• Median Rent: $2,200 (unchanged year-over-year)
• Closed Leases: 1,951 ⬆ 6.9%
• New Leases: 2,723 ⬆ 9.3%
• Active Leases: 5,919 ⬆ 2.8%
• Months of Inventory: 3.0 (up 0.4 months)
• Average Days on Market: 48 (no change)
• Close-to-Rent Price: 95.0% (up from 94.2% in 2024)

Interpreting the Numbers: A Market Regaining Its Footing

1. Prices Stabilize Amid Expanding Supply

The 1.8% dip in median home prices reflects a steadying market rather than a downturn. Over the past three years, Austin’s record-setting price appreciation had priced out many first-time buyers. The return to moderate pricing — coupled with an expanding 5.7 months of inventory — provides breathing room and healthier negotiating conditions.

Inventory growth of 10% year-over-year signals that sellers are re-entering the market, encouraged by sustained job growth, continued in-migration, and confidence in long-term demand. Builders, too, are contributing to this balance through new single-family construction projects across eastern Travis and Williamson Counties.

2. Sales Activity Strengthens

The 6.7% increase in closed sales and 5.6% gain in dollar volume point to revitalized buyer engagement. This suggests that consumers have largely adjusted to mid-6% mortgage rates and are acting decisively when they find well-priced listings.

While new listings fell slightly (–5.7%), active listings rose due to longer market times — evidence of selective buyer behavior and heightened emphasis on value, condition, and location.

3. Rental Market Levels Off

Rents have remained virtually flat year-over-year at $2,200, following several cycles of double-digit increases between 2021 and 2023. The modest uptick in lease activity (+6.9%) combined with rising inventory (+2.8%) indicates equilibrium in the rental market.

Many tenants who postponed buying in 2023–2024 are reentering the conversation in 2025, comparing rent versus buy scenarios. With ownership costs flattening, these renters represent a new wave of potential first-time buyers for early 2026.

Economic Drivers and Demographic Shifts

A Resilient Regional Economy

Austin’s economy continues to outperform the national average. The Texas Workforce Commission reports that Central Texas has added more than 40,000 jobs year-to-date in technology, healthcare, and advanced manufacturing — industries that attract a well-compensated, educated workforce.

This ongoing job creation underpins long-term housing demand even as affordability challenges persist. As of Q3 2025, Austin’s unemployment rate hovers around 3.2%, keeping consumer confidence stable.

Shifting Buyer Demographics

The city’s population growth remains fueled by two dominant groups:

• Millennial families entering the ownership phase and seeking suburban neighborhoods with strong schools (Pflugerville, Hutto, Manor).
• Relocating professionals and remote workers from high-cost regions such as California and Washington, drawn by Austin’s relative affordability and business-friendly climate.

These overlapping buyer groups drive demand across both mid-tier and upper-moderate price points ($350K–$650K), particularly in master-planned communities east and north of downtown.

New Construction and Supply Relief

The Unlock MLS report highlights sustained building activity across Travis, Williamson, and Bastrop Counties. Builders have adjusted their strategies to include smaller floorplans, lower entry prices, and enhanced financing incentives — all of which have expanded buyer access.

In turn, this construction pipeline contributes to inventory normalization and pricing stability. While not an oversupply, the 5.7 months of inventory positions the Austin market near the threshold of a “balanced” environment — favoring neither buyers nor sellers exclusively.

Implications for Market Participants

For Buyers

The fall 2025 market offers something Austin hasn’t seen in years: choice. Buyers now enjoy greater negotiating power, more time to compare homes, and the ability to include contingencies that were often waived during previous frenzies.

This is an opportune time to purchase before interest rates decline in 2026 and competition intensifies. With more inventory, it’s possible to secure value through concessions — such as seller-paid closing costs or mortgage rate buydowns — while still building long-term equity.

For Sellers

Though average days on market have increased slightly (76 days), well-presented homes priced strategically continue to sell swiftly. The average close-to-list ratio of 91.6% underscores the importance of pricing accurately from day one.

Sellers who invest in professional staging, pre-listing inspections, and curb appeal improvements stand out in a marketplace where buyers are comparing more properties side by side.

Moreover, rising relocation activity and steady regional population growth continue to underpin demand — ensuring sellers who adjust to today’s conditions can achieve successful outcomes.

For Investors

The current balance between stable rents and appreciating property values creates an appealing landscape for long-term investors. Rental yields remain attractive in emerging submarkets such as Manor, Elgin, and Kyle, where entry costs are lower, and tenant demand is sustained by expanding infrastructure and job growth.

The lack of rent escalation year-over-year is not a red flag — rather, it reflects market equilibrium following a period of rapid growth. As new inventory is absorbed, rental values are expected to resume moderate annual increases in 2026–2027.

Looking Ahead: 2026 and Beyond

The broader trend points toward measured growth and continued economic resilience heading into 2026. The Federal Reserve’s anticipated easing of interest rates will likely reinvigorate both first-time and move-up buyers, potentially accelerating absorption of existing inventory by midyear.

Price appreciation is expected to hover around 3–5% annually, in line with healthy, sustainable growth. For sellers, this means maintaining strong property values; for buyers, it underscores the advantage of entering the market before demand ramps back up.

In the words of Unlock MLS’s CEO, Cord Shiflet, from the September 2025 report:

“Central Texas is in a position of balance, providing opportunities for both buyers and sellers. We’re moving into a more normalized market — and that’s a good thing for everyone.”

Final Thoughts

The Austin housing market of late 2025 represents a maturing stage of growth — dynamic yet disciplined, driven by strong fundamentals rather than speculation. With balanced supply, stable pricing, and a resilient economy, both buyers and sellers have clear paths to success.

For buyers, the message is clear: act now while options are plentiful and competition subdued. For sellers, preparation and precision remain key to capturing qualified demand.

Interested in learning how current conditions impact your real estate goals?


Request a personalized market analysis or home valuation consultation today and make informed moves in Austin’s evolving 2026 housing landscape.