Austin Entry-Level Homes: Affordability Check for October

What does it cost to buy an entry-level home in Austin today? The bottom quartile of sales in September closed at a median price of $574,950 across 824 transactions. This figure represents the threshold for the most affordable tier of homes sold in the city during that month. ALEX Intelligence calculated affordability using current market conditions. With a mortgage rate of 7.24% from the Freddie Mac Primary Mortgage Market Survey (week of Oct 29, 2026), a buyer purchasing at this median price with a 20% down payment would face a principal and interest payment of $3,135 per month. To make these homes accessible, buyers often rely on buydowns. A standard 3-2-1 buydown costs approximately $21,348, or 3.71% of the median price, reducing the initial rate to 4.24%. A shorter 2-1 buydown costs about $10,848, or 1.89% of the price, lowering the rate to 5.24% for the first year. These concessions are essential tools for managing monthly payments in a higher-rate environment. The median entry-level home size was 1,994 square feet, up 3.3% from last year. While prices have risen 5.4% compared to September 2025, the number of sales dropped 6.8%, indicating that fewer buyers are able or willing to enter this price tier at current rates. ALEX Intelligence estimate, not an appraisal. Want to see this home? Call or text George at 713.918.9951 for a private showing. Data from Unlock MLS. Information deemed reliable but not guaranteed. Model outputs are ALEX Intelligence estimates, not appraisals. Read more Central Texas market data on the ALEX blog: https://alex-companies.com/blog