Are Home Prices Rising or Falling in Downtown Austin, TX?
Prices in Downtown Austin, a neighborhood in Austin, TX, have held nearly flat over the past year, with the median sale price at $749,638 — up less than 2%. Here's a look at what's behind the numbers and what it means for you.
The National Picture
Nationally, during the 3 months ending August 2026, the median sale price sits at roughly $399K, a 2% annual gain. The typical American household devotes about 34% of its roughly $88,000 income to housing, down from 36% a year earlier. Inventory has expanded to around 4 months of supply, and about 20% of active listings have had a price reduction.
Home Prices in the Austin Area
Austin's metro median has fallen to about $414,000, a 6% year-over-year decline. Across the metro, a household earning the typical $109,000 now spends roughly 34% on housing, an improvement of about 2 percentage points from last year. The metro overall has shifted toward buyers.
Holding Steady While the Metro Cools
Downtown Austin's median of about $750K is nearly flat year over year, a notably different trajectory from the 6% metro-wide decline. Homes here take a median of 87 days to sell, though that's 27 days fewer than a year ago, showing that the pace of sales has picked up considerably. Only about 4% of homes sold above list, and the sale-to-list ratio sits at 95%, the lowest among the neighborhoods compared here.
East Cesar Chavez, just to the east, saw prices climb about 9% to $732K. Hancock is up about 6% at $687K. On the other side, Chestnut and Rosewood both saw modest declines, landing near $768K and $788K respectively.
Why Are Prices Flat in Downtown Austin?
Downtown Austin's flat pricing reflects a market with ample supply but improving absorption. Active listings dipped about 2% year over year, yet months of supply remains elevated at about 10, the highest among nearby neighborhoods. New listings rose 11%, adding fresh inventory. Pending sales slipped about 4%, pointing to cautious demand. About 34% of listings carry a price cut, and that 95% sale-to-list ratio confirms that buyers have substantial negotiating leverage. Sellers are meeting buyers partway, which is keeping the median stable rather than pushing it lower.
| Neighborhood | Median Price | Price YoY | Price Drops | Months of Supply |
|---|---|---|---|---|
| Downtown Austin ☆ | $749,638 | +1.6% | 34.0% | 10.2 |
| East Cesar Chavez | $732,147 | +8.5% | 35.5% | 8.1 |
| Chestnut | $767,629 | -3.5% | 48.3% | 4.9 |
| Hancock | $687,168 | +5.7% | 34.5% | 8.4 |
| Rosewood | $788,120 | -2.5% | 43.7% | 6.4 |
Limited to neighborhoods with at least 10 home sales in the period.
All data comes from Redfin and represents a three-month rolling average ending August 2026. This article has been generated, in whole or in part, using generative artificial intelligence (AI) technology, with input from Redfin head of economics research Chen Zhao. While efforts have been made to ensure the accuracy and reliability of this information, you should independently verify all data, facts, and citations contained in this article before relying on it for any purpose. This information is not a substitute for advice from a real estate agent, financial advisor, or other licensed professional. Check the Redfin Data Center for additional in-depth housing market data.
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