Austin Southeast Entry-Level Homes: Affordability Check

What does it cost to buy an entry-level home in the Southeast Austin area today? The median price for the bottom quartile of sales reached $542,500 across 11 closed sales in October 2026. With a current mortgage rate of 7.11% from Freddie Mac, the monthly principal and interest payment on a loan amount of $434,000 exceeds $2,900. ALEX Intelligence applied an affordability index to these figures, calculating the payment burden for buyers entering this price tier. The data shows that while the median price per square foot remains stable at $222.06, the combination of higher rates and a 12.3% drop in median prices compared to September has shifted the landscape. Buyers are now facing a market where homes sell for 95.9% of their original list price on average, with 90.9% of sales closing below the asking price. The sample size of 11 closed transactions indicates that entry-level activity is present but thin compared to the broader region. The median living area for these sales was 2,415 square feet, which is smaller than the prior month's average of 2,886 square feet. This suggests that current entry-level inventory may consist of smaller properties or specific price points rather than a broad range of home sizes. For those considering a buydown to lower their initial payments, the data indicates a 3-2-1 buydown would cost approximately $20,016, reducing the first-year rate to 4.11%. A 2-1 buydown offers a lower upfront cost of roughly $10,176 but provides less long-term relief. These figures represent ALEX Intelligence estimates based on current market conditions and are not appraisals. Want a closer look? Reply or call George at 713.918.9951 and we'll set up a showing. Based on 11 closed sales in the October 2026. 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