Austinites looking to own a home for the first time may be in luck this year, as the housing market is finally starting to look more lucrative for buyers. The post-pandemic homebuying craze left many scared and uncertain about the possibility of becoming homeowners with prices and rates skyrocketing. However, 2024 is shaping up to be a lot more hopeful for those wanting to trade renting for owning.

According to the US News & World Report market forecast for Austin, the current housing market is favoring buyers as mortgage rates are coming down, there’s a more balanced supply and demand of both new and existing homes, and median prices have slowly dipped by 4.2 percent over the past two years. At its peak in 2022, the median home price tipped above $550,000. In March of this year, the median price for homes sold in the Austin-Round Rock-Georgetown area is $450,000, according to the latest housing report from Austin Board of Realtors.

Real estate agent Javier Rubio at Keller Williams Realty, who primarily works with first-time homebuyers, agrees that it’s an ideal time to consider home ownership before it gets too competitive.

“We know that rates will go down, so right now it's the perfect time to take advantage of getting a home — and having the sellers help pay for closing calls and offer incentives like buying down the interest rate," says Rubio. "Once rates dip down, there’s going to be much more competition, so that typically means seller incentives might go away.”

For first-time buyers, another question remains: Where to go in Austin? Rubio says it all comes down to whether buyers want to be in the center of it all — which a lot of young professionals and couples gravitate to — or they’re choosing more family-friendly neighborhoods that are far away enough from the bustle of downtown, but still close to restaurants and shops.

To help start a search around the Austin area, Rubio shares six ZIP codes that are getting the most attention right now among first-time buyers.

78744 — Easton Park area
The Easton Park neighborhood has consistently remained a popular zip code, especially for young couples, says Rubio. Situated just 12 miles from the bustling streets of downtown, Easton Park offers residents the quintessential Austin experience right at their fingertips. It’s close to McKinney Falls State Park and myriad other trails, but it’s also close enough to the nightlife entertainment, coffee shops, and food trailers in Southeast Austin.

78757 — North Shoal Creek, Crestview area
This area in North Central Austin is bustling with entertainment and dining options, making it very attractive to those who don’t want to venture out to downtown all the time. “I'm seeing that a lot of people are flocking to that area because it’s really close to The Domain, we have the Q2 stadium there, and just a lot of restaurants that are popping up in the area as well,” says Rubio.

78723 — Windsor Park area
Another neighborhood that has the best of the worlds: conveniently close to all the fun downtown has to offer, but far enough away for those who want more of a suburban feel. Surrounded by family-friendly trails like Mueller Park and Little Walnut Creek, this area is full of charm, with a mix of new builds and more traditional three-bedroom ranch-style houses that have been remodeled. That all makes it promising for small families and young couples.

78749 — Southwest Austin
Southwest Austin is known for its luscious green spaces; ideal for those who want to remain close to nature and truly get that community feel from their neighborhood. With more spacious homes and larger patios, the prices tend to be a bit higher for first-time buyers, but Rubio says this is another zip code that has remained very desirable in the past few years.

78660 — Pflugerville area
The quiet Pflugerville area is 18 miles away from Austin’s city center and ideal for those looking for a suburban feel, especially for young professionals working north of Austin. It’s been gaining traction in the past few years with newly built homes and more affordable options, plus the highly-rated public schools in this district make it very popular for families with children.

78640 — Kyle, Texas
Although not in Austin anymore, Rubio says this ZIP is gathering a lot of attention and movement among new buyers. Southwest of downtown Austin, Kyle has seen rapid growth in the past few years for the peaceful suburban lifestyle it offers. Plus, the easy access to downtown Austin via I-35 makes it a desirable location for those who don’t mind the commute.