Hot 'Hoods

Real estate experts pick 5 of the hottest ZIP codes in Austin right now

The '04 keeps growing in popularity.

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People are still moving to Austin in a steady stream, no doubt spurred on by the newfound ability to work from anywhere. But our population is also swelling due to ATX's status as a growing tech city — it even beat out Silicon Valley and San Francisco for the second year in a row in a new ranking.

But once all these workers arrive, where are they looking to buy? Lease-to-own company ZeroDown analyzed its data and found the most popular ZIP codes for employees of Apple, Google, Facebook, Amazon, and other top tech players.

78660, Pflugerville
Only 15 minutes from downtown, a combination of location, affordability, and "pfun" puts this town on top. In its latest report, the U.S. Chamber of Commerce ranked Pflugerville the fifth best city in Texas based on employment, housing, quality of life, education, and health metrics. The hit TV show Friday Night Lights used the city's stadium as a filming location, and, as of last year, there is now a Torchy's Tacos outpost — eliminating your last excuse for avoiding this Travis County up-and-comer.

78704, South Austin
This area includes great neighborhoods like Barton Hills, Travis Heights, and Zilker, where the 350-acre Zilker Park encourages you to take a cold dip in the Barton Springs Pool, smell the roses at the Zilker Botanical Garden, or climb around on Rock Island. The Zilker Great Lawn is home to the renowned Austin City Limits Music Festival (in non-COVID times, of course). The '04, as the locals call it, is the ZIP code that Keeps Austin Weird. It is becoming more expensive, and a high-paying STEM job may be your ticket to ride the Zilker Zephyr.

78731, Northwest Hills
This upscale family-friendly neighborhood is set on a hilltop in West Austin, just off MoPac. Besides excellent views, residents have easy access to the shopping and dining of North and Northwest Austin. A commuter's paradise, the vibe is peaceful and serene with frequent wildlife sightings. The main drag is Far West Boulevard, where neighborhood joints offer everything from barbecue to fine dining.

78745, South Austin
You're still close to downtown and funky South Congress, but homes here are more affordable. Walk or bike to nearby Uncommon Objects, the antique store that used to be on South Congress Avenue, or get your cookie fix from Captain Quackenbush's Coffeehouse. Menchaca might even be the new Rainey Street, as developers and bar owners have bought old homes and turned them into bars like Indian Roller and South Austin Beer Garden. It might be, as tech workers are flocking to one of the biggest up and coming entertainment districts in Austin.

78738, Bee Cave
Though it technically did not exist until 1987 (true story!), Bee Cave has quickly grown to have a big-city feel without the actual big city part. Located in Travis County west of downtown Austin, it's a bit further out but no less enticing. Hill Country Galleria and Lone Star Farmers' Market are the go-tos for shopping, while the Bee Cave Sculpture Park is a seven-acre natural park that showcases a combination of rotating and permanent sculptures. Its quaint name derives from the colonies of Mexican honeybees that live on the banks of Barton Creek.

Whether you are moving to Austin from out of state or from right down the street, ZeroDown has your back; its lease-to-own program is perfect for giving you added flexibility if you end up needing to move again, or helping you get into the home you love now without having to worry about the down payment yet. Learn more about how ZeroDown works here.

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local real estate report

Homebuyers can afford to be picky as Austin housing inventory rises

Photo by Avinash Kumar on Unsplash

Housing economist Clare Losey said the most significant factor affecting home sales in Austin is high mortgage rates.

The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing economist Clare Losey, Ph.D., October's mortgage rates stood at 6.4 percent and are showing no signs of a significant drop in the near future. Even heading into 2025, Losey says potential homebuyers who are biding their time in the hopes of seeing rates plummet "may be in for a long wait."

"In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach," Losey said. "Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations."

As for the overall health of the Central Texas housing market, 2024 Unlock MLS and ABoR president Kent Redding labeled recent news reports that called Austin "ground zero" for a downturn as an "extreme over-exaggeration."

"Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic," Redding said. "For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes."

Central Texas housing trends in October 2024

In Travis County, 979 homes were sold last month — a slight 2.5 percent increase from last year. Median prices remained flat year-over-year at $510,000. Active home listings continued growing to 5,702 homes, which is 9.4 percent more year-over-year.

In Williamson County, 807 homes were sold in October, with median prices steadily dropping to $420,000. There were 1,028 new home listings on the market, showing a 4.5 percent increase from October 2023, bringing the total number of active home listings to 3,369.

Residential home sales dropped by nearly eight percent in Hays County in October, totaling 315 sales. Median prices also fell 5.5 percent year-over-year to $359,000. Active listings rose 6.6 percent year-over-year to 1,740 homes with the addition of 534 new listings on the market.

Meanwhile, 114 homes were sold in Bastrop County last month, which is 4.4 percent more than this time last year. Median prices dropped by a single percentage point year-over-year to $355,000. There were 654 active listings on the market in October, and 152 new home listings, representing a 1.3 percent slip in new inventory when compared to last year.

Only 33 homes were sold in Caldwell County in October to reflect a near 14 percent decline year-over-year from October 2023. Median prices fell to $262,990, which was a 13.5 percent decrease from last year. There were 136 active homes on the market last month, and 40 new homes added on the market.

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