Can You Afford to Buy in Southwest Austin Right Now? (2025 Real Numbers Inside)

Let’s Talk Real Numbers for 2025

If you’ve been wondering whether it’s finally the right time to buy a home in Southwest Austin or Dripping Springs, you’re not alone. Rising prices and mortgage rate headlines have many Central Texans asking the same thing:
“Can I actually afford to buy right now?”

The good news? With updated 2025 data and realistic expectations, the answer might surprise you.

Renting vs. Buying in 78739 & Dripping Springs

Here’s a quick snapshot of what local affordability looks like today:

*Assuming a 6.3% interest rate, 5% down payment, ~2.3% property taxes, homeowner’s insurance, and no PMI factored out for simplicity.

While renting can seem easier upfront, homeownership gives you equity growth, stability, and long-term cost control—especially as rent prices in the Austin area continue to rise 5–7% annually.

👉Get our free Rent vs. Buy Calculator HERE to compare your actual numbers and see when buying starts to make financial sense for you.

Breaking Down the Real Costs of Homeownership

If you’re crunching numbers, make sure you’re factoring in all the pieces that affect your monthly payment:

• Mortgage Rates (2025): Hovering around 6.3-6.5% for most buyers, depending on credit and loan type.

• Property Taxes: Expect between 1.8%–2.7% depending on your school district and neighborhood.

• HOA & MUD Fees: Circle C, Belterra, and Headwaters each have unique fees ranging from $70–$150/month that cover amenities, trails, and community upkeep.

• Home Insurance & Maintenance: Plan for around 1% of your home’s value annually to cover maintenance, repairs, and improvements.

These details matter—and they’re exactly what your Rent vs. Buy Calculator helps you visualize side by side.

Why Affordability Looks Different in 2025

Yes, home prices in the Austin area remain high compared to pre-2020 levels—but the market is also stabilizing. Inventory is up, price growth has cooled, and many builders are offering incentives that weren’t available a few years ago.

For buyers who’ve been waiting for the “right time,” 2025 might actually offer the balance between price, inventory, and competition that’s been missing since the boom years.

See What You Qualify For (Before You Start Searching)

Numbers on a screen are one thing—knowing your actual buying power is another. Before you write off homeownership, take 5 minutes to find out what you truly qualify for.

💬 Want to see what you qualify for?
Let’s connect you with our preferred local lender who can run your pre-approval, help explore payment options, and even show creative loan programs designed for first-time or move-up buyers.

Bottom Line

Southwest Austin and Dripping Springs remain two of the most desirable—and fastest-growing—areas in Central Texas. Whether you’re renting now or ready to buy, getting clear on your numbers is the first step toward your next home.

👉 Get our Rent vs. Buy Calculator to crunch your numbers today.
Then reach out for a quick affordability review—no pressure, just real info about what’s possible right now.