Want to understand Austin’s real estate market? Here’s what you need to know about price per square foot, a key metric for buying or selling property.
- What it is: Divide a property’s price by its livable square footage. Example: A 2,000 sq ft home priced at $800,000 = $400/sq ft.
- Why it matters: Helps buyers compare homes across neighborhoods and sellers set competitive prices.
- Current trends: Prices vary by location, property type, and demand. Premium areas like Downtown Austin ($625/sq ft) are pricier, while Southeast Austin offers value ($275/sq ft).
- Market outlook: Expect slower price growth in 2025-2026 due to rising interest rates and new developments.
Quick Overview of Austin Zip Codes:
| Zip Code | Area | Median Price/Sq Ft | YoY Change |
|---|---|---|---|
| 78701 | Downtown | $625 | +8.2% |
| 78703 | West Austin | $575 | +6.5% |
| 78744 | Southeast Austin | $275 | +5.5% |
Key Takeaway: Price per square foot is a powerful tool, but don’t overlook factors like property condition, lot size, and location. Use it alongside market trends for smarter decisions.
Central Texas Housing Report – 2024 Year-End | Austin Texas …
What Affects Price Per Square Foot
Several factors influence the price per square foot in Austin, shaping property values across the city. Each plays a distinct role in determining how much buyers are willing to pay.
Location Matters
Neighborhoods like Downtown Austin, Tarrytown, and Westlake Hills tend to have higher prices due to their proximity to jobs, top-rated schools, and local amenities. Access to urban conveniences, scenic parks, and vibrant entertainment areas also makes properties in these areas more desirable – and pricier.
Size and Quality of the Home
Smaller homes often have a higher price per square foot because the cost is distributed across less space. On the other hand, larger homes usually have a lower cost per square foot. Factors like high-quality construction, modern designs, and recent renovations can further increase a property’s value.
Supply and Demand
The balance between housing inventory and buyer demand plays a big role in pricing. When homes are in short supply, prices rise. Conversely, new developments can help stabilize or slow price increases. Austin’s real estate market remains dynamic, adjusting as inventory and demand shift.
Price Trends in Austin
Austin’s real estate market has been on an upward path over the last decade, driven by strong demand and limited supply. Let’s break down the long-term trends, current pricing by property type, and what the future might hold.
10-Year Price History
Over the past ten years, the median price per square foot for residential properties in Austin has steadily climbed. This reflects the city’s growing popularity and the resilience of its housing market.
2024 Prices by Property Type
In 2024, the price per square foot varied significantly depending on the type of property:
- Single-family homes: Prices differ greatly based on neighborhood, size, and age of the home.
- Downtown condos: These properties command higher prices, thanks to premium amenities and urban views.
- Suburban townhomes: A more affordable option, often featuring shared community amenities.
- Multi-family units: Pricing depends on rental demand and investment potential.
2025-2026 Market Outlook
Looking forward, Austin’s price per square foot is likely to keep trending upward, though at a slower pace. Key factors include ongoing tech sector growth, population increases, and tight housing inventory. However, rising interest rates, new construction projects, and a more balanced buyer-seller market could soften price growth. Staying informed on local market trends will be crucial for both buyers and sellers.
sbb-itb-4c99469
Austin Zip Code Price Guide
Austin’s real estate market shows how location plays a major role in determining price per square foot. Here’s a breakdown of selected zip codes, highlighting median prices and year-over-year changes as of March 2025.
Premium Zip Codes
Some of Austin’s most desirable neighborhoods come with higher price tags. For example:
- 78701 (Downtown): Median price is $625 per square foot.
- 78703 (West Austin): Around $575 per square foot.
- 78746 (Westlake Hills): Approximately $550 per square foot.
These areas are known for their central location, upscale amenities, and high demand.
Best Value Neighborhoods
If you’re looking for more affordable options, several neighborhoods offer competitive pricing:
- 78744 (Southeast Austin): Median price is $275 per square foot.
- 78753 (North Austin): About $295 per square foot.
- 78724 (East Austin): Roughly $285 per square foot.
These neighborhoods provide a balance of affordability and access to Austin’s urban lifestyle.
Price Comparison by Zip Code
Here’s a closer look at median prices and year-over-year changes across key areas:
| Zip Code | Area | Median Price/Sq Ft | YoY Change |
|---|---|---|---|
| 78701 | Downtown | $625 | +8.2% |
| 78703 | West Austin | $575 | +6.5% |
| 78746 | Westlake Hills | $550 | +5.8% |
| 78704 | South Central | $485 | +4.9% |
| 78731 | Northwest Hills | $445 | +4.2% |
| 78702 | East Austin | $375 | +7.5% |
| 78757 | Allandale | $365 | +3.8% |
| 78753 | North Austin | $295 | +5.2% |
| 78724 | East Austin | $285 | +6.1% |
| 78744 | Southeast Austin | $275 | +5.5% |
These numbers reflect median prices as of March 2025 and can vary depending on factors like property condition, lot size, and specific location within each zip code. It’s also worth noting that appreciation rates differ widely, underscoring the diverse opportunities in Austin’s market.
Making Smart Price Decisions
Understanding market trends and comparing zip codes are just the starting points. Making well-informed pricing decisions requires looking at the bigger picture.
Best Uses of Price Per Square Foot
Price per square foot can be a helpful tool for analyzing properties. It works best in scenarios like:
- Comparing similar condos or homes to assess relative value.
- Evaluating rental property potential for returns on investment.
- Checking property prices against neighborhood averages.
When combined with broader market analysis, it provides a clearer picture of a property’s worth.
Common Pitfalls
Relying too much on price per square foot can lead to errors. Watch out for these common issues:
- Ignoring Property Condition: Two homes with the same size can have very different values depending on their condition and updates.
- Overlooking Lot Size: A 2,000 sq ft home on a quarter-acre lot in 78703 will likely be worth more than the same home on a smaller lot.
- Disregarding Age Differences: Newer homes, like those in Mueller (78723), often sell at a premium compared to older properties in the same area.
These examples show why it’s important to consider multiple factors when assessing property value.
Additional Price Factors
Here are other elements that can influence a property’s value:
| Factor | Impact on Value | Details |
|---|---|---|
| Location Quality | High | Proximity to amenities and services |
| Property Features | Medium | Energy-efficient systems, smart tech |
| Market Timing | Variable | Seasonal demand, interest rate changes |
| Lot Characteristics | High | Views, topography, and usable space |
Don’t forget to account for custom upgrades, future development in the area, and the current market climate. These details, when combined, help paint a more accurate picture of a property’s market value.
Use these insights to make smarter evaluations and stay ahead in the market.
Summary
Main Points Review
The price per square foot in Austin depends on factors like location, property features, and market trends. Here’s what stands out:
- Location Matters: Homes in sought-after zip codes, such as 78703, typically have higher prices due to their amenities and overall appeal.
- Property Features: Elements like size, condition, and lot characteristics play a big role in determining value.
- Market Trends: Pricing is influenced by supply and demand, with seasonal shifts and interest rate changes having a major impact.
Action Steps
Use these insights to guide your approach:
| Step | Action |
|---|---|
| Research | Compare properties in your preferred neighborhoods to set price goals. |
| Evaluation | Examine the condition, age, and features of properties for fair value. |
| Consultation | Seek advice from local real estate experts for informed decisions. |
| Analysis | Review market trends and forecasts to pick the right time to act. |
For tailored advice, connect with local professionals who know the Austin market.
About Austin Local Team
Austin Local Team provides essential real estate services tailored to the Austin market. Their offerings include:
- Agent Matching: Get paired with experienced agents who specialize in your target neighborhoods.
- Market Insights: Access in-depth property valuations and trend data.
- Relocation Support: Expert help for moving to or within the Austin area.
"Austin Local Team was great! Extremely grateful for a real estate agent who was knowledgeable about issues moving from out of state. Good communication and setting expectations with deadlines." – Michael C.
Their platform also offers free home valuations and apartment locating services. Whether you’re buying, selling, or relocating, Austin Local Team has the tools and expertise to help you navigate the city’s real estate market with confidence.
