Question 1

Is it a good time to buy a house in Austin in 2025?

Accepted Answer

It is a buyer's market with prices down nearly 20% from the peak. However, with interest rates around 6.5% and high property taxes (approx 2.3%), the monthly cost of owning is often significantly higher than renting. Buying makes sense if you can negotiate a price under $420k and plan to stay for 7+ years.

Question 2

What are the property taxes in Austin?

Accepted Answer

Austin (Travis County) has some of the highest property taxes in the country, averaging around 2.2% to 2.5% of the assessed value. On a $500,000 home, expect to pay over $11,000 annually in taxes alone.

Question 3

Is renting cheaper than buying in Austin?

Accepted Answer

Currently, yes. Due to a surplus of new apartment construction, rents in areas like The Domain and South Congress have softened. You can often rent a luxury apartment for $2,200/month, whereas owning a comparable home would cost over $3,500/month including taxes and HOA.

Austin: Buy the Dip or Rent Forever?