Southeast Austin Entry-Level Homes: Can Buyers Afford Them?

Can buyers afford entry-level homes in Southeast Austin when the median price sits at $373,865? The bottom quartile of closed sales defines this segment, and ALEX Intelligence uses that quartile to calculate an affordability index based on current financing costs. In October 2026, 59 single-family homes closed in Southeast Austin with a median close price of $373,865. This represents a 9.6% drop from the same month last year, when the median was $413,534. The median price per square foot also fell to $197.58, down 4.7% from October 2025. While prices have softened, the cost of borrowing remains a key factor for buyers entering this market. Using the current mortgage rate of 7.11% from the Freddie Mac Primary Mortgage Market Survey, a buyer purchasing at the median price with a 20% down payment faces a principal and interest payment of $2,012 per month. A 3-2-1 buydown could lower that first-year payment to $1,447, saving $565 monthly, though it would cost $13,788 upfront. Alternatively, a 2-1 buydown would reduce the first-year payment to $1,626 for a cost of $7,008. The median home size in this segment was 2,102 square feet, slightly larger than the prior month's 2,057 square feet. With 360 active listings and 4.78 months of inventory, buyers have more options than last year, but affordability remains the primary constraint for entry-level shoppers. 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