🏠 Austin Mortgage Calculator

Use our Austin mortgage calculator to estimate monthly payments in Texas’s booming capital city. The median home price in Austin is approximately $475,000, having moderated from pandemic-era peaks but remaining well above pre-2020 levels. Austin has attracted major employers like Tesla, Apple, Google, and Oracle, driving sustained housing demand. However, property tax rates in the Austin metro are among the highest in Texas, often exceeding 2.00%. Enter your details below for a complete monthly payment breakdown.

Austin Housing Market Overview

Austin’s real estate market experienced extraordinary growth from 2020 to 2022 as tech companies expanded their Texas presence, followed by a meaningful correction that has brought prices closer to sustainable levels. The median home price is approximately $475,000, down from a peak near $575,000 in 2022 but still representing significant long-term appreciation.

Desirable central neighborhoods like Zilker, Travis Heights, and Tarrytown range from $800,000 to $2,000,000+. East Austin has gentrified rapidly, with prices in the Mueller and Holly neighborhoods reaching $500,000–$800,000. Suburban communities in Round Rock, Cedar Park, and Pflugerville offer newer homes from $350,000 to $500,000, while areas like Kyle, Buda, and Hutto provide more affordable options starting around $300,000.

Property Taxes and Local Costs

Austin-area property taxes are among the highest in Texas, with effective rates reaching 1.90%–2.30% depending on location. Travis County rates are particularly notable:

  • Travis County (Austin): Effective rates of 1.90%–2.20%, among the highest in the state
  • Williamson County (Round Rock, Cedar Park): Approximately 1.85%–2.15%
  • Hays County (Kyle, Buda, San Marcos): Approximately 1.75%–2.10%
  • Texas homestead exemption: $100,000 off assessed value for school taxes, plus local exemptions
  • Over-65/disabled exemption: Additional $10,000 off school taxes plus a tax freeze on school tax amount

On a $475,000 home at a 2.00% effective rate, annual property taxes would total approximately $9,500 before the homestead exemption, which typically saves $1,200–$2,400 per year. This high tax burden is a critical factor in your affordability calculation. Use our Percentage Calculator to model different scenarios.

Insurance and Special Considerations

Homeowners insurance in Austin averages $2,000–$4,200 per year, reflecting central Texas’s exposure to severe weather including hail, tornadoes, and flash flooding. Key considerations include:

  • Hail damage: Austin receives frequent severe hailstorms, and roof claims are common. Impact-resistant Class 4 roofing materials can reduce premiums by 10%–25% and are increasingly recommended by insurers
  • Flash flooding: Austin’s hilly terrain and rapid urbanization create significant flash flood risk. Properties near creeks, low water crossings, or in the Onion Creek and Shoal Creek watersheds should carry flood insurance ($600–$3,500 per year). Austin has experienced multiple major flood events and the city’s turn-around-don’t-drown campaign underscores the risk
  • Wildfire risk: The 2011 Bastrop County wildfire highlighted risk in the eastern Hill Country. Properties in wooded areas west and southwest of Austin may face higher premiums or require defensive space compliance
  • Cedar allergies: While not an insurance matter, Austin’s notorious cedar allergy season (December–February) is worth noting for buyers relocating from other regions

Compare quotes from at least three insurance carriers, as premiums for the same property can differ by $1,000 or more annually depending on the insurer’s regional loss experience.

First-Time Buyer Resources in Austin

  • Austin Housing Finance Corporation (AHFC): Provides down payment assistance of up to $40,000 for income-eligible buyers purchasing within Austin city limits. The program is structured as a zero-interest, deferred loan.
  • TDHCA My First Texas Home: Below-market interest rates with up to 5% in down payment and closing cost assistance available statewide.
  • TSAHC Home Sweet Texas: Non-repayable grants of up to 5% of the loan amount for qualifying first-time and repeat buyers.
  • Community land trusts: Organizations like Guadalupe Neighborhood Development Corporation offer permanently affordable homes in central Austin neighborhoods.

Tips for Austin Homebuyers

The cooling market has shifted leverage toward buyers in many Austin neighborhoods, so take advantage by negotiating on price, requesting seller concessions for closing costs, and asking for home warranty coverage. Research property taxes before falling in love with a home — a $475,000 house in Austin proper could have a $9,000+ annual tax bill that adds $750+ per month to your payment. Compare tax rates across Travis, Williamson, and Hays counties, as differences can represent thousands of dollars annually.

With Austin’s tech economy, the market can shift quickly based on hiring trends and corporate decisions, so focus on long-term value rather than short-term market timing. Consider the commute implications of Austin’s growth — I-35 congestion is severe, and living south of the river while working north (or vice versa) can mean 45–60 minute drives during peak hours. Neighborhoods along the MoPac corridor and near the future Project Connect light rail route may offer better long-term transit connectivity. Use our Sales Tax Calculator to estimate Texas’s 8.25% combined sales tax rate in Austin as you plan your overall budget.

Related Calculators

Plan your Austin home purchase with these tools:

Frequently Asked Questions

Why are property taxes so high in Austin?
Austin-area property taxes (1.90%–2.30% effective rate) are among the highest in Texas because the city, county, and school districts all levy significant rates to fund services and infrastructure. Texas has no state income tax, so property taxes bear a larger share of government funding. On a $475,000 home, expect annual taxes of $7,000–$9,500 after homestead exemptions.
Is the Austin housing market cooling down?
Yes, Austin’s market has moderated from its pandemic-era peak. The median price of $475,000 is down roughly 17% from the 2022 high of approximately $575,000. Inventory has increased, days on market have lengthened, and buyers have regained negotiating leverage. However, Austin’s long-term fundamentals — tech employment, population growth, and quality of life — remain strong.
What are the best affordable suburbs near Austin?
Kyle, Buda, and Hutto offer homes starting around $300,000 and are within a 30–45 minute commute of central Austin. Pflugerville and Round Rock provide excellent school districts with homes from $350,000–$500,000. Georgetown and Leander offer growing communities with newer construction at moderate price points.
How much down payment assistance is available in Austin?
The Austin Housing Finance Corporation offers up to $40,000 in down payment assistance for income-eligible buyers. TDHCA and TSAHC provide additional statewide programs with up to 5% of the loan amount as grants or deferred loans. Combined, these programs can significantly reduce the upfront cash needed to purchase an Austin home.
Do I need flood insurance in Austin?
Flood insurance is required if your property is in a FEMA Special Flood Hazard Area and you have a federally backed mortgage. Even outside these zones, Austin’s hilly terrain and frequent flash flooding make coverage highly recommended. Properties near Onion Creek, Shoal Creek, or Williamson Creek are particularly vulnerable. Premiums range from $600 to $3,500 per year.