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Austin has long been known for its diverse job base, lifestyle appeal, and steady population growth. As the housing market moves into 2026, many buyers are asking a familiar question. Is now a good time to buy a house in Austin?
Current research confirms that 2026 is a premier window for buyers to enter the Austin market with notable leverage. The most telling statistic for today's buyer is the ratio of sellers to buyers: Austin currently has 115% more sellers than buyers, the second-largest gap of any major U.S. metro. This imbalance has effectively ended the era of frantic bidding wars, shifting the power of negotiation firmly into the buyer’s court.
To better understand what is happening right now, here are 4 key facts shaping the Austin housing market in 2026.
1. Austin Inventory Is Supporting Buyer Choice
Austin currently has 12,764 active residential listings as of January 2026, representing a 12.6% increase over last year. This means you no longer have to compromise on your "must-haves." Whether you need a 3-car garage in Leander or a dedicated home office in Manor, the current supply allows you to be selective.
2. Home Prices Have Adjusted Year Over Year
The median home sale price in the Austin metro is approximately $440,000 as of January 2026. While Austin remains a high-value market, this price point reflects a significant adjustment of roughly 20% from the $550,000 peak reached in 2022. This correction has been a welcome sight for buyers, as it improves affordability relative to the extreme highs of previous years.
This adjustment is reinforced by the fact that over 50% of active listings in the metro have seen at least one price reduction, according to the January 2026 Austin Real Estate Market Update. This environment encourages balanced negotiations, especially in areas with higher inventory or longer days on market.
This has encouraged more balanced negotiations between buyers and sellers, especially in areas with higher inventory or longer days on market.
3. Rental Demand Remains Competitive
Austin’s rental market continues to reflect strong demand. Realtor.com reports a median rent of roughly $1,995 per month, with approximately 8,100 rental listings available across the metro.
While median rent prices have declined year over year, renter activity remains high. For many buyers, this dynamic reinforces the appeal of homeownership as a long-term housing solution, particularly in neighborhoods with stable pricing and community growth.
4. Market Activity Is Stable but "Cool"
The pace of the Austin market has transitioned from the frenetic speed of the early 2020s to a much more manageable, "cool" pace. According to recent market data, homes in Austin are now spending a median of 91 days on the market before securing a contract. This shift reflects a market that is functioning efficiently without the unsustainable pressure of past years.
For buyers exploring areas like Central Austin, Northwest Austin, East Austin, and Southeast Austin, this slower tempo is a significant advantage. With more time to evaluate options, buyers can now conduct thorough inspections and successfully negotiate for seller concessions—such as closing cost credits or mortgage rate buydowns. These terms were virtually non-existent during the peak of the housing boom but are now common, as noted in the January 20, 2026 Austin Market Update.
Is Now a Good Time to Buy a House in Austin?
For buyers who value selection, flexibility, and a less rushed experience, the Austin housing market in 2026 offers meaningful opportunities. Prices have adjusted, inventory has improved, and homes are taking longer to sell, creating conditions that favor thoughtful decision-making.
This perspective is supported by third-party market data and reflects a market that has stabilized while remaining fundamentally desirable.
M/I Homes is building new homes in several Austin-area communities, offering buyers an opportunity to explore modern designs and growing neighborhoods throughout the metro. To learn more, check out our new homes in the Austin area.
If you are considering a move, now is a great time to explore your options and better understand what today’s Austin housing market has to offer.
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