As long as interest rates stay anywhere near the level they are at now, it will likely be better for consumers to rent a home in Austin vs buying a home in Austin.  See this article from CNC where they state that in every one of the 100 biggest metro markets, buying a home was found to be the more affordable path over renting, providing you find a home you can afford and plan on staying in the home long enough.  

Current Austin Real Estate Market Overview 

As of August 2024, the average rent in Austin is $1,470 per month. This figure represents a slight decrease from previous months and reflects ongoing adjustments in the rental market due to economic factors and new apartment constructions​ (Zumper - Apartments for Rent & Houses)​​ (Steadily Landlord Insurance)​.

The average cost of buying a home in the Austin Metropolitan Statistical Area (MSA) has significantly increased. As of mid-2024, the median sale price for a home is approximately $473,049​ (Steadily Landlord Insurance)​. This is a notable rise from previous years, driven by high demand and limited inventory.

Should You Rent vs Buy?

Factors to Consider: Renting vs Buying in Austin

Even if they're prepared, some are hesitant to buy a property due to the amount of debt they'll get into but look at it as an investment. With renting vs buying, you're giving away your money to your landlord, but with buying, you're putting money into your own investment, your very own home.

Some people think that rent is much cheaper than buying a house, but when you look at it for the long-term, it’s not that ideal. Trulia, a real estate listing site, found out from their research that buying a house is more affordable than renting one especially to the millennials that are between the ages of 24-35 with a mortgage payment that is less expensive as 25%.

But of course, ask yourself some of these big questions to know if you are ready when it comes to buying a home in Austin. Look into your financial and personal situation if you are prepared to purchase a property.

How long do you plan to stay within Austin/your residence?

Do you have a stable job? How is your credit?

Do you have an emergency fund?

These are some questions you might want to ask yourself or you can also consult our Austin real estate agents to guide you by filling the form by the end of this blog.

The kicker here is that you actually plan on staying in that home long enough. I always advise my clients when they are searching MLS for homes, that they actually plan on staying in that home for at least 3 years, and even that is cutting it close. The fact of the matter is that we will have a recession at some point.  It may not be next year but it will happen.  And that's why we advise on 5 years to be a safer bet for appreciation and being able to sell your home with enough equity to move up in the house when you buy the next one.  

TAKE THE RENT VS BUY QUIZ

Here's a great tool from Zillow that lets you see the rent vs buy calculations and how long you'll need to stay at a given property you purchased in order to break even as opposed to renting. 

Buying a home in Austin provides you another financial advantage which is increasing your ROI. Since it’s your home, you have all the freedom! It’s now your time to invest in your newly bought home by enhancing and improving it throughout your stay.

 Top Neighborhoods for Buying in Austin

Some of the best places to buy a home in Austin are the neighborhoods in 78704, to name a few, Barton Hills, Zilker, Travis Heights. It's the reflection of the "Keep Austin Weird" slogan, and if you want to experience the best of Austin, you got to check out the area or the homes in it. There are over 20 master planned communities in Austin such as Easton Park and Goodnight Ranch that offer the best of both worlds, the sense of belonging within a community plus the outstanding amenities they offer. There are also plenty of homes with the best views in Austin as well as walkable neighborhoods in Austin.

If you are ready to find your ideal home, you can look it up by clicking here or give us a call at (512) 298-5668 today!

Renting vs. Buying in Austin FAQs 

How long should I plan to stay in a home to make buying worthwhile in Austin?

It's advisable to plan on staying in the home for at least 3-5 years. A 5-year stay is considered a safer bet for appreciation and building enough equity to move up when you buy your next home.

What factors should I consider when deciding between renting and buying in Austin?

Consider factors such as your financial situation, job stability, credit score, emergency fund, and how long you plan to stay in Austin. Also, think about your willingness to handle home maintenance and repairs.

How does inflation affect renting vs buying in Austin?

Rental rates typically adjust with inflation, while mortgage payments remain steady and fixed. This means that over time, buying can provide more stability in your housing costs.

What are some of the best neighborhoods to buy a home in Austin?

Some popular neighborhoods for buying homes in Austin include areas in 78704 such as

,

, and

. There are also over

like Easton Park and Goodnight Ranch that offer a sense of community and excellent amenities.

Tags

• austin real estate (11)
  
  
• Home Buyer (3)
  
  
• buying (2)
  
  
• Renting (1)
  
  
• Homes in Austin Texas (1)