Austin Housing Market Falls Again – May 2025 Median Price Hits $450K

Austin Housing Market Update: Median Home Price Falls Again in May 2025

The Austin housing market continues its multi-year correction, with median home prices declining for the third consecutive May. As of May 2025, the median sold price across the Austin-area MLS is $450,000—down 1.1% from $454,995 in May 2024. While this decline is far less severe than the 16.2% drop seen in May 2023, it underscores the ongoing market reset following the peak of the pandemic-era housing boom. For context, in May 2022, the median price had climbed 18.8% year over year, reaching a high-water mark that has not been approached since.

This data reflects sales activity throughout the broader Austin area, which includes six counties: Travis, Williamson, Hays, Bastrop, Caldwell, and Burnet. Year-over-year price declines have been consistent across this region since early 2023. That year ended with an average 9.6% annual decline in median sold price. The trend continued through 2024, albeit at a slower pace, with the year averaging a 2.0% decline. In 2025, the pattern remains negative. Monthly declines from January to May have ranged from 1.1% to 4.5%, signaling that the market has yet to stabilize.

Historically, May is one of the strongest months for price growth in the Austin market, with a long-term average increase of 5.1% in median home values. This year’s performance stands in sharp contrast to that trend, further illustrating the market’s departure from previous cycles. With high inventory levels and affordability pressures limiting buyer activity, sellers across the Austin area are adjusting prices to meet current demand conditions. As of this report, the median sold price is now $100,000 below its peak in 2022, representing an 18.2% drop from the height of the market.

This prolonged decline in pricing has few precedents in the past two decades of Austin housing data. The most recent comparable period was during the 2008 financial crisis, though the current correction is deeper, more sustained, and broader in geographic impact. The six-county area that makes up the Austin housing market has not experienced this level of price decline since records began tracking consistent monthly changes in the early 2000s.

The downward trend in median sold prices reflects ongoing shifts in market conditions. While the pace of decline has slowed compared to last year, the data confirms that Austin’s housing market continues to adjust in 2025. With no clear signal of a turnaround yet, the region remains in a period of recalibration shaped by excess inventory, higher borrowing costs, and tighter household budgets.

FAQ: Austin Housing Market and Median Price Trends

What is the median home price in the Austin area as of May 2025?
The median sold price for residential properties in the Austin-area MLS is $450,000 as of May 2025. This includes data from the six-county region: Travis, Williamson, Hays, Bastrop, Caldwell, and Burnet. Compared to May 2024, the price has declined by 1.1%.

How much have Austin home prices dropped since their peak?
Home prices in the Austin housing market peaked in mid-2022, with the median sold price approaching $550,000. As of May 2025, the median price has dropped to $450,000, indicating a total decline of approximately $100,000, or 18.2%.

Has the Austin market experienced this kind of decline before?
Not in recent history. While there were brief periods of stagnation or slight decline during the 2008 housing crisis, the current correction is the most prolonged and substantial in more than two decades of regional data across the Austin area.

How do current trends compare to typical seasonal growth in Austin home prices?
May has historically delivered strong price growth, with an average increase of 5.1% year over year. In contrast, May 2023 saw a 16.2% drop, and May 2025 shows a 1.1% decline, both significantly below seasonal expectations.

Why are home prices continuing to fall in the Austin area?
The decline is driven by several converging factors: a significant increase in active listings, decreased urgency from buyers due to affordability constraints, and the lingering effects of price inflation during 2021 and 2022. The market is still adjusting to more sustainable pricing levels, which is contributing to continued downward pressure.​