Central Texas Housing Market Keeps Moving Forward as Buyers Stay Active Despite Economic Headwinds
For anyone wondering whether higher mortgage rates, affordability concerns and economic uncertainty would cool the Central Texas housing market, the latest numbers suggest many buyers have already made up their minds.
According to the May 2026 Central Texas Housing Report from Unlock MLS, homebuyers remained active throughout the region during the peak spring selling season, carrying momentum from earlier in the year into the start of summer. While home sales and inventory levels varied from county to county, one trend stood out across much of the Austin-Round Rock-San Marcos metropolitan area: buyers are continuing to make moves despite ongoing challenges.
That activity matters for homeowners, prospective buyers, renters and local communities alike. A healthy housing market supports neighborhood stability, economic growth and long-term investment in some of Texas' fastest-growing communities. The latest data also suggests the market is settling into a more predictable rhythm, giving consumers more time to make informed decisions rather than feeling pressured by rapid market swings.
Buyer Demand Remains Strong Across the Austin Region
The Austin-Round Rock-San Marcos MSA recorded 3,310 pending home sales in May, a 14.3% increase compared to May 2025. That figure remained close to April's elevated total of 3,411 pending sales, signaling that demand has persisted even as temporary mortgage rate relief from earlier in the year faded.
Vaike O’Grady, market research advisor at Unlock MLS, said the continued activity reflects changing consumer behavior.
“What’s particularly notable about May’s housing activity is that buyers continued to engage with the market even as many of the factors that typically create hesitation, such as affordability challenges and economic uncertainty, remained in place. That tells us consumers are making decisions based on long-term life goals and housing needs rather than trying to perfectly time the market.”
O’Grady added that several key indicators point toward a stable market environment.
“We’re also seeing encouraging signs of stability across key indicators, including home prices, days on market and close-to-list price ratios. Together, those trends point to a market that is functioning in a healthy and predictable way, giving both buyers and sellers greater confidence as they navigate their next move.”
Across the metro area, 2,953 homes were sold in May, down 3.4% year over year, while the median home price dipped slightly to $440,000, a decline of 0.9%. Active listings decreased 16.6% compared to last year, ending the month at 12,508 homes available for sale.
Austin Continues to Lead Regional Activity
Within the City of Austin, home sales climbed 4.6% year over year to 1,076 transactions, while pending sales jumped nearly 16% to 1,157.
The city's median home price reached $595,000, up slightly from a year ago, while active inventory fell nearly 25%.
The data points to a market where demand remains healthy even as buyers continue seeking affordability and value. With 4.4 months of inventory available, Austin remains relatively balanced compared to the highly competitive conditions seen during the pandemic-era housing boom.
Travis and Williamson Counties Show Continued Strength
Travis County posted one of the strongest gains in buyer activity, with pending sales increasing 20.3% year over year. The county recorded 1,524 pending transactions and 1,353 completed sales during May.
Although the county's median home price declined 3.9% to $535,000, total dollar volume increased nearly 3%, suggesting continued confidence among buyers.
Williamson County also saw steady activity. Pending sales increased 17.8%, reaching 1,124 transactions. The median home price settled at $406,000, down 4.5% from a year earlier, potentially providing additional opportunities for buyers looking for more affordability within the region.
Communities in Round Rock, Georgetown, Cedar Park, Leander and surrounding areas continue to attract families and professionals seeking access to jobs, schools and amenities while maintaining relative affordability compared to Austin's urban core.
Mixed Results in Fast-Growing Outlying Counties
Not every part of Central Texas experienced the same level of growth.
Hays County saw residential sales fall 28.7% year over year, while pending sales declined 7.4%. However, the county's median home price increased 1.6% to $390,000, suggesting prices have remained resilient despite softer transaction activity.
Meanwhile, Bastrop County continued showing signs of growth. Home sales increased 9.3% and pending sales rose 7.9%, while total dollar volume climbed 15%.
Caldwell County presented an interesting picture as well. Although completed sales dipped slightly, pending sales surged 31.6%, potentially indicating stronger activity in the months ahead.
For many buyers priced out of Austin and parts of Travis County, communities farther from the urban core continue offering attractive alternatives, particularly as remote and hybrid work arrangements remain common.
Rental Market Shows Signs of Stabilization
The rental market also reflected changing conditions across Central Texas.
Across the metropolitan area, median rent decreased 2.1% year over year to $2,150, while pending lease activity increased 4.3%.
Austin's median rent declined to $2,250, while Travis County's median rent dropped to $2,200. Williamson, Hays, Bastrop and Caldwell counties all recorded year-over-year decreases in median rental prices as well.
For renters, the trend could provide additional flexibility and negotiating power as available inventory remains relatively balanced across many communities.
What This Means for Central Texas Residents
For homeowners considering selling, the data suggests there are still active buyers in the market, particularly for well-priced homes in desirable neighborhoods.
For buyers, the market appears considerably more predictable than it was just a few years ago. While affordability challenges remain, inventory levels, price stability and steady demand are creating conditions that allow consumers to make decisions based on their personal needs rather than reacting to extreme market pressures.
John Crowe, 2026 Unlock MLS and Austin Board of Realtors president, said that flexibility may be one of today's biggest advantages.
“Central Texas remains one of the most dynamic regions in the country, and the sustained buyer activity we’re seeing this spring reflects the quality of life and strong communities that make this area so attractive.”
He added that today's market offers more room for thoughtful decision-making.
“For consumers, one of the biggest benefits of today's market is having the ability to be more intentional about their next move. Rather than racing against rapidly changing conditions, buyers and sellers have an opportunity to evaluate their options, ask questions and make informed decisions. A professional agent can help guide that process and provide the local perspective needed to navigate it successfully.”
What Happens Next?
As Central Texas moves deeper into the summer homebuying season, market watchers will be paying close attention to mortgage rates, inventory levels and buyer demand.
For now, May's data suggests that while the housing market may no longer be moving at the breakneck pace seen in previous years, it continues to demonstrate resilience. Buyers are still buying, sellers are still selling and communities across the Austin region continue attracting people who want to put down roots in one of Texas' most sought-after places to live.
For residents considering a move, the latest housing report offers a clear takeaway: the Central Texas housing market remains active, balanced and driven by long-term confidence in the region's future.
Stay tuned to My Neighborhood News for more local real estate, housing market and community development updates across Central Texas.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region,