🏦 Austin Mortgage Affordability Calculator

Find out how much home you can afford in Austin. Texas's capital and tech hub has seen rapid price increases in recent years. Combined with the state's high 1.8% property tax rate, careful affordability planning is essential for Austin buyers.

Your total annual income before taxes
Annual income of co-borrower (if any)
Car loans, student loans, credit cards, etc.
Annual property tax as % of home value
Private Mortgage Insurance (if down payment < 20%)
Max % of income for housing (28% standard)
Max debt-to-income ratio (36% standard)

Austin Mortgage Affordability Overview

Austin has transformed from an affordable college town into one of the hottest housing markets in the US, driven by tech company expansions and relocations (Tesla, Apple, Google, Oracle). Prices have risen significantly, though some moderation has occurred after the 2021-2022 peak. The combination of elevated prices and Texas's high property taxes creates a challenging affordability landscape.

Key Factors for Austin Buyers

  • Home Prices: Median around $450,000, down from the 2022 peak but still well above pre-2020 levels.
  • Property Taxes: 1.8% average, with Travis County rates often exceeding 2%.
  • Insurance: $2,500 average, elevated by hail and storm risk.
  • Tech Economy: High incomes in the tech sector ($85,000+ median) help offset costs, but competition for housing remains strong.

Tips for Austin Home Buyers

  • Explore areas outside the Austin city limits (Pflugerville, Round Rock, Cedar Park) for lower prices and potentially better tax rates.
  • The market has cooled from 2022 peaks; buyers now have more negotiating power and less competition.
  • New construction in suburbs like Leander, Liberty Hill, and Kyle offers competitive pricing.
  • Take advantage of the $100,000 homestead exemption to reduce school property taxes.

Frequently Asked Questions

How much house can I afford in Austin?

With an $85,000 income and 20% down, Austin buyers can afford approximately $310,000 to $350,000. This is below the city median, making suburbs and smaller homes the typical entry point.

Has the Austin market cooled?

Yes, prices have moderated from the 2022 peak. Inventory has increased, and buyers have more options and negotiating power compared to the bidding-war environment of 2021-2022.

Are Austin suburbs affordable?

Round Rock, Pflugerville, and Cedar Park offer median prices $50,000 to $100,000 below central Austin, with good schools and shorter commutes to major tech employers in North Austin.

How do Austin property taxes compare to other tech hubs?

Austin's effective property tax rate of 1.8-2%+ is much higher than San Francisco (0.76%), Seattle (0.92%), or Denver (0.55%). This significantly increases monthly costs and reduces the price of home you can afford.

Is it worth waiting to buy in Austin?

Market timing is difficult, but the current market offers more balanced conditions than the past few years. Interest rate changes and continued job growth will be key factors. If you plan to stay 5+ years, buying when you can afford it generally makes sense.

Frequently Asked Questions

How much house can I afford in Austin?
With an $85,000 income and 20% down, Austin buyers can afford approximately $310,000 to $350,000, below the city median.
Has the Austin market cooled?
Yes, prices have moderated from 2022 peaks with more inventory and negotiating power for buyers.
Are Austin suburbs affordable?
Round Rock, Pflugerville, and Cedar Park are $50,000 to $100,000 below central Austin with good schools and commutes.
How do Austin property taxes compare to other tech hubs?
At 1.8-2%+, Austin's rates are much higher than SF (0.76%), Seattle (0.92%), or Denver (0.55%).
Is it worth waiting to buy in Austin?
Current conditions are more balanced than recent years. If staying 5+ years, buying when affordable generally makes sense.