Austin 78721 Zip Code: Why the $300K-$400K Housing Market Has 51 Months of Inventory

Austin’s 78721 Zip Code: A Deep Dive into the $300K-$400K Housing Market Inventory

In the city of Austin, Texas, the real estate market varies significantly across zip codes and price ranges. One area that stands out is the 78721 zip code, particularly in the $300,000 to $400,000 price range. According to data from Team Price Real Estate, revised on April 23, 2025, this segment of the market shows a remarkable 51 months of inventory, the highest for any $100,000 price range across 75 zip codes in Austin. This figure indicates a slow-moving market for homes priced between $300,000 and $400,000 in 78721, providing valuable insight for buyers, sellers, and real estate professionals.

The months of inventory metric represents the time it would take to sell all active listings if no new properties were added to the market. In 78721, the $300,000 to $400,000 price range has 17 homes currently listed for sale, with only one property sold in the past 90 days. This low sales velocity contributes to the 51-month inventory figure, suggesting that homes in this price range are taking significantly longer to sell compared to other segments. For context, the overall average months of inventory in 78721 across all price ranges is 6 months, highlighting the unique dynamics of the $300,000 to $400,000 market.

Examining the active listings further, the 17 homes in this price range have an average of 154 days on the market. This duration reflects the time these properties have been listed without selling, with individual days on the market ranging from as few as 6 days to as many as 317 days. The wide range suggests variability in property appeal, pricing, or market conditions affecting buyer interest. Compared to other zip codes in Austin, such as 78717, which has 3.86 months of inventory in the $400,000 to $500,000 range, or 78727, with 2.60 months in the same $300,000 to $400,000 range, 78721’s extended inventory period is exceptional.

Across Austin’s zip codes, the $300,000 to $400,000 price range shows diverse inventory levels. For instance, 78702 reports 3 months of inventory, while 78723 has 12 months in this price bracket. The 78721 zip code’s 51 months is an outlier, indicating a surplus of available homes relative to demand. In contrast, lower price ranges in 78721, such as under $300,000, have zero months of inventory, suggesting no active listings or rapid sales. Higher price ranges, like $500,000 to $600,000, show 6.5 months, and $1,000,000 and above have 15 months, illustrating a more balanced market in other segments.

The data also provides a broader perspective on 78721’s real estate landscape. For homes priced between $400,000 and $500,000, the inventory is 6.5 months, while the $600,000 to $700,000 range has 6.67 months. The $700,000 to $800,000 and $800,000 to $900,000 ranges both show 7.29 and 6 months, respectively. These figures indicate that while the $300,000 to $400,000 range struggles with high inventory, other price segments in 78721 align more closely with Austin’s broader market trends, where inventory typically ranges from 2 to 15 months in most zip codes.

For those interested in the Austin housing market, the 78721 zip code’s $300,000 to $400,000 price range offers a unique case study. The prolonged days on the market and high months of inventory suggest that sellers may need to adjust pricing strategies or enhance property marketing to attract buyers. Meanwhile, buyers in this segment may find opportunities to negotiate, given the abundance of available homes. The data underscores the importance of understanding local market dynamics, as inventory levels can vary dramatically even within a single zip code.

The Austin real estate market is known for its diversity, with zip codes like 78701 showing 9 months of inventory in the $300,000 to $400,000 range and 78704 reporting 8.57 months. However, 78721’s 51-month inventory in the same price range sets it apart, making it a focal point for those analyzing market trends. As of April 23, 2025, this data from Team Price Real Estate provides a snapshot of a market segment that is moving slowly, offering a wealth of information for anyone navigating Austin’s housing landscape.

FAQ Section

What does months of inventory mean in real estate?

Months of inventory measures how long it would take to sell all active listings in a given market at the current sales pace, assuming no new listings are added. In the 78721 zip code, the $300,000 to $400,000 price range has 51 months of inventory, meaning it would take over four years to sell the 17 active listings if only one home continues to sell every 90 days.

Why is the 78721 zip code’s inventory so high in the $300,000 to $400,000 range?

The high inventory of 51 months in 78721’s $300,000 to $400,000 price range is due to low sales activity, with only one home sold in the past 90 days, and a large number of active listings (17). The average days on the market of 154 days suggests that these homes are not attracting buyers quickly, possibly due to pricing, property conditions, or market demand.

How does 78721’s housing market compare to other Austin zip codes?

In the $300,000 to $400,000 price range, 78721’s 51 months of inventory is significantly higher than other Austin zip codes, such as 78702 (3 months), 78723 (12 months), or 78727 (2.60 months). Other price ranges in 78721, like $500,000 to $600,000 (6.5 months), are more aligned with typical Austin inventory levels, which range from 2 to 15 months.