Moving to Austin in 2026: What Out-of-State Buyers Are Surprised to Learn About Texas Real Estate

The data keeps showing it: people are still moving to Texas, and Austin remains one of the top destinations. A study published by SmartAsset in late April 2026 ranked Austin among the metros that have seen the fourth-largest home price decline in the country since 2025, with first-quarter 2026 metro median prices at approximately $415,300, down about 3.4 percent year over year. For buyers coming from higher-cost markets, that price level is still a significant step down from what they left behind.

But the move-to-Austin playbook has some chapters that most relocating buyers do not find until they are already in the middle of a transaction. After working with dozens of out-of-state buyers every year, we have seen the same surprises come up again and again. Here is what to expect so none of them catch you off guard.

Texas Has No State Income Tax, But Property Taxes Are High

This is the trade-off that surprises almost every relocating buyer from California, New York, or Illinois. Texas does not collect state income tax, which for a W2 professional earning $150,000 per year can mean $12,000 to $15,000 more in take-home pay annually compared to California rates.

The offset is property taxes. Texas property tax rates are among the highest in the country. Depending on the county and any applicable exemptions, you can expect an effective rate of 1.8 to 2.5 percent of assessed value annually. On a $450,000 home in Travis County, that translates to roughly $8,000 to $11,000 per year, collected monthly through your escrow account.

The homestead exemption helps. Once you have lived in the home as your primary residence for a full calendar year, you can file for the Texas homestead exemption, which reduces the taxable assessed value and caps year-over-year assessment increases at 10 percent. File early in the year following your purchase. Many out-of-state buyers miss the first filing window simply because they did not know about it.

The net math for most relocating professionals still works strongly in Texas’ favor. But you need to run the full budget including property taxes, not just the principal and interest payment, to get an accurate picture of your monthly housing cost.

The Market Has Softened From Its Peak, But Priced-Right Homes Still Move

According to Redfin data updated this week, the Austin metro median home price sat at approximately $530,000 in March 2026, down about 2 percent year over year. Homes are averaging 58 days on market. The broader metro, which includes suburban counties with lower price points, shows a median closer to $415,000 to $426,000 depending on the data source and geographic boundary used.

The slower pace compared to 2021 and 2022 creates a better environment for out-of-state buyers who need more time for due diligence. You are generally not competing with 15 offers anymore. But homes that are priced correctly for their condition and location still go under contract within a few weeks. The mistake some relocating buyers make is assuming the softer market means every home is a negotiation. The ones that linger often have a reason, and the well-priced inventory still attracts multiple buyers.

Texas Is a Non-Disclosure State for Sale Prices

This is one of the details that catches out-of-state buyers most off guard. Texas does not require sellers to publicly disclose the sale price when a home closes. That means the sold price is not recorded in public data the way it is in most other states.

What this means practically: the comparable sales data used to value homes in Texas comes primarily through MLS records that only licensed agents and subscribing services can access. Public-facing tools like Zillow and Redfin often show estimated values that are less reliable in Texas than they are in disclosure states. Your agent’s access to accurate MLS comps is more important here than in states where anyone can pull sold data from public records.

It also means that when you are evaluating whether an asking price is fair, you need a real estate agent who knows the specific submarket. The difference between accurate and inaccurate comparable sales can be meaningful, particularly in neighborhoods that have seen significant price movement over the past two years.

New Construction Is Everywhere, and Builder Incentives Are Real Right Now

The Austin metro has a significant amount of new construction, particularly in the northern suburbs around Cedar Park, Georgetown, Leander, and Liberty Hill, and in the southern and southwest corridors through Buda, Kyle, and Dripping Springs. For out-of-state buyers, especially those relocating from markets where new construction is scarce, the availability of brand-new inventory at relatively accessible price points is a genuine advantage.

Builders in the current environment are offering closing cost assistance and interest rate buydown programs to move inventory. These incentives are most aggressive during the spring sales season. They are also most valuable when you understand how to compare them against what the resale market offers at the same price point.

One thing to know: most builders require that you use their preferred lender to receive the full incentive package. That preferred lender may or may not be offering the most competitive terms. We routinely help buyers run a side-by-side comparison of builder-lender offers against what we can provide so that you are making the decision with full information, not just the headline number on the incentive sheet. Reach out and we can walk through it with you.

HOA Structures Are More Complex Than in Most States

Master-planned communities are a defining feature of suburban Texas, and they typically come with layered HOA structures. A community may have a master association covering shared infrastructure, parks, and amenity centers, plus a sub-association specific to your neighborhood section or product type. Both fees count toward your debt-to-income qualification.

Monthly HOA dues in Austin-area communities range from nominal amounts to $400 or more depending on the amenity level. Make sure you know every layer of the fee structure before you finalize your pre-approval, because the qualifying payment your lender uses needs to include the correct total dues. We cover this in detail in our guide to how HOA fees affect mortgage qualification.

Texas Uses a Deed of Trust, Not a Mortgage

Texas is a deed of trust state, not a mortgage state. This is primarily a legal distinction that affects what happens in a foreclosure scenario, but it is worth knowing because the documents you sign at closing in Texas will look different from what you may have seen or heard about in other states. Your lender and title company are familiar with this, and it does not change your experience as a buyer in any meaningful day-to-day way. But if you are reading your closing documents and wondering why you do not see the word mortgage where you expected it, this is why.

The Cost of Living Advantage Is Still Significant

For buyers relocating from high-cost metros, the financial case for Austin still holds. MoneyGeek cost of living data shows that a $100,000 income in San Francisco is equivalent to approximately $58,000 in Austin. That gap has narrowed somewhat from the peak differential a few years ago, but it remains wide enough that most relocating professionals find their purchasing power substantially higher in Texas than what they were working with before.

Combined with no state income tax and a housing market that has corrected meaningfully from its 2022 peak, the 2026 entry point in Austin is genuinely better for out-of-state buyers than it was 24 months ago. The buyers who do their homework on the property tax picture, the HOA structure, and the new construction landscape come out ahead. The ones who do not do that homework sometimes end up with a monthly payment that surprised them.

We work with relocating buyers from all over the country, and we know the questions that matter most before you commit. If you are planning a move to Austin or anywhere in Texas and want to understand what your buying power looks like here, start your pre-approval and we will give you a complete picture. You can also reach us directly if you want to talk through the specifics of your situation first.

Frequently Asked Questions

Is Austin still a good place to move in 2026?

The cost of living data and housing price trends published in late April 2026 continue to show that Austin offers strong relative value for buyers relocating from higher-cost markets. Home prices have corrected from their 2022 peak, no state income tax remains a significant financial benefit, and the job market in the Austin metro continues to attract employers across tech, healthcare, and finance. The cost-of-living math still supports the move for most W2 professionals coming from California, the Northeast, or the Pacific Northwest.

How much should I budget for property taxes in Austin?

A reasonable planning estimate is 1.8 to 2.5 percent of the assessed value annually depending on the county. For Travis County specifically, rates tend to run at the higher end of that range. Your lender will calculate the monthly escrow requirement for property taxes as part of your pre-approval, giving you an accurate monthly payment number that includes taxes and insurance, not just principal and interest.

Can I buy in Austin before I physically relocate?

Yes. Remote purchases in Texas are common and we facilitate them regularly. You will need to arrange either a local agent for in-person tours or virtual walk-throughs, and you can sign closing documents remotely via a mobile notary or through a remote online notarization process. Texas recognizes remote online notarization, which makes the logistics considerably easier than in some other states.

What is the homestead exemption and when can I apply?

The Texas homestead exemption reduces the taxable assessed value of your primary residence and caps year-over-year assessment increases at 10 percent. You are eligible to file once you have owned and occupied the home as your primary residence as of January 1 of the tax year. The filing deadline is April 30. If you close in the second half of the year, your first opportunity to file will be the following spring.

Should I use the builder lender or an outside lender for a new construction purchase in Texas?

This is one of the most important questions relocating buyers ask us, and the answer depends on what the builder is actually offering. Builder incentive packages tied to using their preferred lender can be genuinely valuable, but the comparison has to include the full loan cost, not just the credit at closing. We help buyers run that comparison so they can make the decision with accurate numbers on both sides.

Ferrando Financial LLC | NMLS# 2403080 | Licensed in Texas. This content is for educational purposes only and does not constitute a commitment to lend. Market data referenced from Redfin, SmartAsset, and MoneyGeek, published April-May 2026. Loan approval is subject to credit, income, and property qualification. Property tax rates and cost of living figures are estimates and vary by property and location.