The Austin housing market is shifting quickly, and if you want to find the best places to buy a home in Austin, TX in 2025, you need neighborhood-level insight — not county-wide summaries. Interest rates, inventory, and buyer demand are creating clear winners and losers across the city and suburbs. Below I break down where values are holding, where prices are sliding, and practical strategies for both buyers and sellers.
Table of Contents
- Introduction
- How We Analyze the Austin Housing Market Data
- Impact of Rising Interest Rates on the Austin Housing Market
- Top Neighborhoods to Buy or Sell a Home in Austin Right Now
- Austin Housing Market Declines: Areas with the Biggest Price Drops
- Key Insights and Tips for Austin Home Buyers and Sellers
- Manor, Texas Real Estate: Why This Suburb is Gaining Popularity
- Final Thoughts
- FAQs
Introduction
Interest rates climbed late 2024 into 2025 and have a direct impact on what buyers can afford and how sellers price. In December 2024 rates started around 6.69 percent, spiked above 7 percent in mid-January 2025, then settled near 6.87 percent by the last week of February. When rates move like that, the buying power of the typical buyer drops — which forces sellers to be more realistic and competitive on price.
But the story is not uniform. Some neighborhoods are gaining traction and selling faster despite higher rates, while others are seeing steep discounts and ballooning inventory. The practical result: where you look matters as much as what you can afford.
How We Analyze the Austin Housing Market Data
Citywide metrics tell a story, but they hide the neighborhood-level shifts that actually matter to buyers and sellers. We pull zip code–level numbers for neighborhoods and suburbs where people are buying homes today, and we track central indicators like:
- Median price change year over year
- Days on market
- Months of inventory
- Percent of asking price sellers are accepting
That combination reveals pockets that are still in demand and those that have become buyer markets. Use these microtrends to shape offers, timing, and pricing expectations.
Impact of Rising Interest Rates on the Austin Housing Market
Rising rates equal less buying power. For example, a conventional loan payment on a $400,000 home rises noticeably when mortgage rates go from 6.7 percent to 7 percent. That compresses the pool of buyers for higher-priced homes and increases buyer negotiation leverage in areas where inventory grows.
On the flip side, more affordable suburbs with strong job access are still attracting buyers — sometimes fast enough that prices do not fall as dramatically as in pricier neighborhoods. When rates rise, look for demand to concentrate in affordable, commutable suburbs and well-priced, move-in-ready homes.
Top Neighborhoods to Buy or Sell a Home in Austin Right Now
These are the current winners — markets holding steady or gaining momentum. Each has a different price point and buyer profile, so pick the area that best matches budget and lifestyle needs.
Manor (zip 78653)
Manor is one of the most affordable and fastest-selling suburbs near Austin. Median prices dipped about 10 percent year over year to just under $350,000 in January 2025, but homes are selling almost a month faster than last year — about 41 days on market. For buyers looking to stay under $400,000 with a short commute, Manor remains one of the few realistic options.
Why it matters: proximity to major employers and new retail development is improving livability and long-term upside.
VIEW HOMES FOR SALE IN MANOR, TX
Pflugerville (zip codes 78660 and 78691)
Pflugerville is a balanced market with strong buyer demand. Prices were down only 4 percent year over year to roughly $389,000, and homes moved 33 percent faster than last year — approximately 42 days on market. This steadiness makes Pflugerville a solid play for both buyers and sellers who want predictability.
Why it matters: strong buyer interest plus moderate pricing keeps competition healthy without the wild swings seen elsewhere.
VIEW HOMES FOR SALE IN PFLUGERVILLE, TX
Round Rock (zip codes 78664, 78665, 78681)
Round Rock remains a top pick for suburban buyers. Prices dipped about 8 percent year over year to around $450,000, yet inventory is turning quickly — about 54 days on market. If you want a home close to Austin without paying downtown premiums, Round Rock is still a strong bet.
Why it matters: good schools, job access, and a robust local economy keep demand consistent even when markets soften.
VIEW HOMES FOR SALE IN ROUND ROCK, TX
Austin Housing Market Declines: Areas with the Biggest Price Drops
These neighborhoods are experiencing the most pain. Sellers face extended listings, price cuts, or accepting offers well below asking price. For buyers, these areas represent opportunity — but require due diligence on long-term neighborhood fundamentals.
Downtown Austin (zip 78701)
Downtown listings now show meaningful price cuts and slower sales. Median price fell about 15 percent year over year to roughly $620,000, and inventory sits at about eight months — a clear shift toward buyer advantage. If proximity to core city amenities is less critical than value, downtown is delivering deals.
Zilker (zip 78704)
Zilker had the largest price drop in the report: down about 18 percent year over year to $689,000. Inventory sits near nine and a half months, creating an unmistakable buyer market. If Zilker was out of reach before, it may now be possible to find attractive properties — especially for buyers ready to negotiate.
Hyde Park (zip 78751)
Hyde Park is one of the steepest recent declines. Prices crashed roughly 30 percent year over year to about $627,000, and sellers are accepting offers at only 81.8 percent of asking price — the lowest acceptance rate in this reporting. For buyers who want a historic home and are willing to manage negotiations and possible renovations, Hyde Park offers strong discounts.
Why it matters: historic neighborhoods can recover strongly in long cycles, but timing and condition matter. Buyers should budget for renovation and be selective with inspection contingencies.
Key Insights and Tips for Austin Home Buyers and Sellers
What should buyers and sellers do next? Here are practical takeaways grounded in the numbers:
- Sellers: If you are listing in Manor, Pflugerville, or Round Rock, price competitively and stage aggressively — these markets are still turning quickly.
- Sellers in downtown, Zilker, or Hyde Park: Expect longer days on market and plan for negotiation. Consider pre-listing repairs or a strategic pricing drop to stand out.
- Buyers: Zilker, downtown Austin, and Hyde Park currently offer the best discounts, but verify neighborhood fundamentals and future development plans before committing.
- All parties: Understand how mortgage rates change your actual monthly payment. Small rate moves translate to meaningful shifts in affordability.
Use a local agent who tracks zip code trends and can advise on realistic pricing and negotiation strategy. Neighborhood nuance is everything right now.
Manor, Texas Real Estate: Why This Suburb is Gaining Popularity
Manor is close to our hearts because it is our backyard, but the reasons for its momentum are objective. Commute times to downtown Austin are typically 15 to 20 minutes depending on traffic. That proximity, combined with affordability, makes Manor a rare suburban option for buyers who still need access to downtown jobs.
Recent and upcoming retail additions are game changers. The area is getting a large grocer — the HEB chain — plus a Chick-fil-A. For residents who previously had limited options beyond a Super Walmart, that new retail mix meaningfully improves daily life and resale appeal. The HEB and Chick-fil-A projects should be complete by late 2025, which could accelerate price growth once the new amenities open.
Manufacturing and tech presence nearby — including commute access to employers like Tesla and Samsung — adds to the appeal. Right now the majority of Manor inventory sells under $500,000, so it is attractive for first-time buyers and value-focused buyers alike.
Final Thoughts
Markets do not move in lockstep across a metro area. Higher mortgage rates have narrowed the buyer pool for more expensive properties, but well-priced homes and affordable suburbs are seeing fast activity. The chief advantage for anyone making a move now is information: neighborhood-level pricing, days on market, and months of inventory tell a very different story than county- or city-level averages.
Practical next steps:
- Decide your absolute maximum monthly payment and run numbers at several mortgage rates to see how sensitivity affects your budget.
- Target a neighborhood that fits both price and commute constraints. For many buyers, that means considering Manor, Pflugerville, or Round Rock before checking pricier central areas.
- If you are selling in a slower area, plan for extra days on market and set expectations for negotiation. If you are selling in a hot suburb, prepare to act quickly on move-in ready pricing and staging.
- Work with an agent who shares localized zip code data and can send tailored listings matching your criteria.
Whether your move is in 10 days or 10 months, making data-driven decisions now will help you save thousands and find a home that fits both budget and lifestyle.
FAQs
Which neighborhoods currently represent the best places to buy a home in Austin, TX?
Manor, Pflugerville, and Round Rock are the markets showing the strongest demand and the fastest sales right now. They offer more affordability and shorter days on market compared with many central neighborhoods.
Where are the best deals for buyers in Austin?
Downtown Austin (78701), Zilker (78704), and Hyde Park (78751) are showing the biggest price drops and higher inventory, which creates buying opportunities for those willing to negotiate and accept potential renovation needs.
How do rising interest rates affect what I can buy?
Higher rates reduce monthly buying power. Even a fraction of a percentage point can lower the home price you qualify for. Always run affordability scenarios at several rate levels before making an offer.
If I need to sell in a slow neighborhood, what should I do?
Be realistic about pricing, invest in cost-effective repairs or staging to stand out, and be prepared for negotiation. Consider timing your listing for local demand cycles or offering flexible terms to attract buyers.
Is now a buyer's market in Austin?
It depends on the neighborhood. Several central neighborhoods are leaning toward buyer advantage due to higher inventory and price drops, while many suburbs remain balanced or seller-friendly. Neighborhood-level data determines market type.
How should I prioritize commute, price, and amenities when choosing a neighborhood?
Start with your nonnegotiables: maximum commute time, budget ceiling, and must-have amenities. From there, shortlist neighborhoods that match two of three priorities and then compare listings for value and condition. For many, suburbs like Manor give the best balance of commute and affordability right now.
