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Austin Home Prices See Significant Drop, Affordability May Improve in 2026
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A cooling housing market could bring relief to prospective homebuyers, as Austin-Round Rock-San Marcos ranks among the U.S. metros experiencing the most substantial declines in home values. New data suggests that finding an affordable home in Austin may become more attainable in the coming years.
Austin-Round Rock-San Marcos secured the No. 3 spot on Realtor.com‘s list of the top 10 U.S. metropolitan areas with the greatest year-over-year median home value decreases. The median listing price for a home in the Austin area in 2025 is currently $479,000 – a $26,870 reduction from the previous year.
Florida Metros Lead the National Downturn
While Austin is experiencing a notable shift, Florida metros are leading the nationwide decline in home values. North Port-Bradenton-Sarasota, Florida, holds the No. 1 position with an 8.6 percent decrease, followed by Cape Coral-Fort Myers, florida, at 7.9 percent.
The downturn follows a period of rapid price increases in many U.S. cities, especially during the height of the pandemic. Austin, in particular, saw a dramatic surge in housing prices in 2021 and 2022.
Supply and Demand Dynamics at Play
According to one analyst, the influx of new construction played a significant role in austin’s previous price surge. “New construction is part of the story, as builders responded to the spike in demand by building lots of new homes in this metro,” the analyst stated. “And now that existing-home inventory has rebounded as well,supply exceeds demand.”
This increased supply,coupled with persistent high prices,is contributing to a slowdown in demand. The Austin Board of Realtors’ October housing report indicated that median home prices had remained stable for seven consecutive months. In November, the median price in the Austin-Round Rock-San Marcos metro area fell 1.1 percent year-over-year to $430,000.
A Shift in the Market
The report’s author noted that “after years of record-breaking appreciation, the market is starting to come back down to earth in some areas where houses are beginning to lose value.” While this shift may not be welcomed by sellers, it offers a glimmer of hope for potential homebuyers who have been priced out of the market in recent years.
Here are the top 10 U.S. metros where home values decreased the most in 2025:
- No. 1 – North Port-Bradenton-Sarasota, Florida
- No. 2 – Cape Coral-Fort Myers, Florida
- No. 3 – Austin-Round Rock-San Marcos, Texas
- No. 4 – Lakeland-Winter Haven, Florida
- No. 5 – Stockton-Lodi, California
- No.6 – Deltona-Daytona Beach-Ormond, Florida
- No. 7 – Tampa-St.Petersburg-Clearwater, Florida
- No. 8 – Jacksonville,florida
- No. 9 – Denver-Aurora-Centennial, Colorado
- No. 10 – San Francisco-
