Austin-area buyers searching for an affordable first home in 2026 are increasingly finding one thing: They may have to look farther from the city core to find a good deal.

New data from Unlock MLS shows sales of homes priced below $300,000 rose 21 percent year-over-year across dozens of Austin-area ZIP Codes during the first quarter of 2026, driven largely by growth in outer suburbs and exurban communities like Kyle, Buda, Hutto, and Elgin.

Researchers at the Texas Real Estate Research Center at Texas A&M University say the trend reflects a broader statewide shift toward lower-priced new construction, often built farther from urban job centers where land costs remain lower.

Farther outside of Austin, “the sales became smaller in numbers, and they tend to be concentrated," says Yanling Mayer, a housing economist with the center at Texas A&M University. Lower-priced homes have largely “disappeared” from many closer-in Austin neighborhoods compared to the years before the pandemic, she said.

Mayer analyzed sales below $350,000 in the Austin metro before and after the pandemic. Before 2020, lower-priced home sales were spread throughout the metro, from Georgetown to San Marcos. In recent years, those homes have become increasingly concentrated along the metro’s outer edges.

The shift highlights how dramatically Austin’s housing market has changed in just a few years. Mayer noted that Austin’s median spring home price hovered around $325,000 in 2019. This spring, she said, the median price is expected to land closer to $430,000 if current trends continue.

Still, agents say conditions for first-time buyers in the Austin-area market have improved noticeably from the pandemic-era frenzy that left many buyers priced out entirely.

“Almost every buyer is getting either seller concessions, repairs, or both,” says Steph Douglass, CEO and broker of Open House Austin. “We’re seeing a bit more competition on well-priced listings, but we’re not seeing offers significantly over ask.”

Douglass says sellers are pricing homes more realistically than they did during the peak pandemic years, when bidding wars routinely pushed homes far above list price.

“This is great for first timers because they’re seeing a more reasonable price off the bat, and it doesn’t scare them to put their hat in the ring,” she says.

Here are some of the Austin-area ZIP Codes attracting first-time and affordability-focused buyers in 2026:

78744 — Southeast Austin

Southeast Austin remains one of the stronger options for buyers trying to stay relatively close to central Austin when purchasing newer homes.

Nearly a decade after its first phases opened around 2016, the 2,700-acre Easton Park master-planned community near East William Cannon Drive and McKinney Falls Parkway continues maturing with additional amenities, retailers, restaurants, and neighborhood services. The development is also expected to get its own H-E-B store by late 2027, often viewed locally as a sign that a fast-growing area is evolving into a full-service community.

Other active subdivisions in the area include Colorado Crossing, McKinney Crossing, Reserve at McKinney Falls, Vistas of Austin, and Bradshaw Crossing.

Douglass says Southeast Austin continues drawing buyers because it offers a mix of newer construction and comparatively more attainable prices than many central neighborhoods.

78753 and 78758 — North Austin

North Austin neighborhoods continue drawing first-time buyers looking for proximity to major employers without paying central Austin prices. Unlock MLS data shows that 78758 entered the region’s list of active sub-$300,000 ZIP Codes in early 2026, while nearby 78753 continued to post lower-priced sales activity.

Realtor Sam Archer, broker associate at Juice Real Estate Group, says the ZIP Codes remain attractive because buyers can still find older ranch-style homes with access to major job centers, The Domain, and central Austin conveniences at prices below many surrounding neighborhoods.

Like many homes in 78753, this 3-bedroom home on the market for $370,000 has been updated and remodeled inside. Photo via Zillow

“Areas like 78753 and 78758 continue to offer some of the best entry points into homeownership because they balance affordability, location, and long-term upside,” Archer says.

The neighborhoods also continue attracting condo and townhome buyers looking for alternatives to higher-priced central Austin neighborhoods while remaining close to Austin’s tech corridor.

78640 — Kyle/Buda Corridor

The Kyle/Buda corridor posted the highest number of sub-$300,000 closings in the first quarter of 2026, with 161 sales — up 32 percent year-over-year.

The area continues attracting buyers seeking larger homes, newer subdivisions, and more space for families while remaining within commuting distance of Austin. Development continues to grow throughout the corridor, with several large master-planned communities actively expanding or adding new phases.

Among the largest is 6 Creeks, which includes multiple national homebuilders and continues adding new inventory in southern Hays County. Other major developments include Anthem, a 422-acre community planned for roughly 1,500 homes, and Plum Creek, one of the area’s older master-planned developments that continues adding new phases.

Newer developments like Infinity Square are also expanding farther east of Interstate 35, reflecting continued demand for newer homes at lower price points than many closer-in Austin neighborhoods.

78634 — Hutto

Hutto posted one of the metro’s biggest jumps in lower-priced home sales, with sub-$300,000 closings rising nearly 54 percent year-over-year.

Agents say the area continues drawing first-time buyers thanks to a mix of resale homes and a surge of newer master-planned communities expanding along the SH 130 corridor.

“The toll road creates easy access to Austin, Elgin, and Georgetown,” says Brooke Daniel, owner and broker at Hippo Realty.

Multiple master-planned communities continue building new phases across Hutto, including Brooklands, Firefly Pointe, Carmel Creek, Flora, Cottonwood Farms, Cross Creek, Emory Crossing, and The Gateway at Hutto development.

The area’s combination of newer housing stock, suburban amenities, and comparatively lower prices continues attracting buyers willing to trade longer commutes for larger homes and more space.

78621 — Elgin

Elgin continues drawing buyers looking for lower prices within commuting distance of Austin.

The area has seen continued growth from buyers willing to trade longer drives for larger lots, newer homes, and more affordable monthly payments than many closer-in Austin neighborhoods. Large master-planned communities continue expanding throughout the area, including Harvest Ridge, Briarwood, Trinity Ranch, Homestead Estates, and Elm Creek.

Many of the developments are targeting affordability-focused buyers with newer homes and suburban-style amenities like pools, parks, trails, fishing ponds, sports courts, and community centers.

This DRB Home model in Creeks Crossing in Elgin starts at $249,500.Photo via DRB Homes on Zillow

Affordability still comes with tradeoffs. For many buyers, lower prices increasingly mean longer commutes, less access to Austin's core, and physically removed social relationships. That shift may work for some households, especially buyers with flexible work arrangements or families prioritizing larger homes and yards. But Mayer says affordability remains one of the market’s biggest challenges, even as conditions slowly improve.