If you’re looking for affordable homes in Austin, you may find yourself a bit overwhelmed. Anything “affordable” means different things to different people at different levels in the economic spectrum. The affordable housing category, however, does have some numbers attached to it. For any home buyer, the monthly mortgage expense, plus the cost of utilities, should not exceed 30% of the household’s gross income.
For example, an annual salary total (before taxes) of $68,000 per year could support a mortgage payment of $1,200 to $1,475, allowing $400 to $600 per month for utilities. A household income of twice that is affordable in twice the mortgage payment and utilities allowance range. You won’t have the other 70% of gross salary to spend, as taxes will take a bite, and your paycheck will reflect that. But, it’s a comfortable number to keep the mortgage commitment, remembering it includes property taxes and insurance, and utilities payments to 30% or less.
Austin is More Affordable Than You Think
If you think the Austin housing market is open just to the six-figure salary earners, think again. There are many very nice neighborhoods with charming bungalows, one-floor ranchers, 2-story colonials, sleek contemporary and brick houses and new builds. With all the house flipping talent around, many older homes offer a wow factor in having renovated interiors to modern, often open space concept, floor plans. Bathrooms have been added and updated, along with new appliances, floors and neutral color schemes to attract the next homeowner. Other houses come to the market with prices to reflect that some TLC, elbow grease and fresh paint are needed.
The good news is that home buyers need not sacrifice community spirit, outdoor recreation, good schools, great eats, entertainment and healthcare choices to settle into a suitable home that makes good financial sense. You can get into a house that fits your financial position to a tee.
Affordable Homes in the Austin Area
You don’t move somewhere for just the barbecue, but the City of Taylor, on the northern edge of Austin, is reputed to have the number one BBQ joint in all of the Lone Star State at Louie Mueller Barbecue on West 2nd Street. Downtown offers a small-town atmosphere, and many companies have been relocating nearby, so jobs and entrepreneurial opportunities are plentiful. Cute homes on tree-lined streets and new builds are abundant under $400,000.
Garrison Park is a little south of downtown Austin with an even mix of rentals and homeowners, urban amenities and suburban feel. The median income falls below six digits. Schools are rated above average. While you can find homes topping $500,000, there are small, single-family dwellings well under that by more than $100,000 or more.
Perhaps the most affordable housing in the greater Austin area can be found in Windsor Hills. Three and 4-bedroom homes hover right around $400,000, with the median price of $364,763. Greenbelt trails, banjo and archery workshops, great hamburgers, Korean food and family-friendly, dog-friendly and bicycle-friendly qualities entice many locals and newcomers to settle here.
It might come as a surprise that homes in the North University area, obviously just north of the University of Texas at Austin, embrace a median purchase price of $212,500. Mostly inhabited by students and young professionals, the area extends a warm welcome in its Craftsman bungalows and American Foursquare styles. A youthful energy embraces comfy coffee shops, an exciting nightlife, great eateries and an easy commute downtown.
For the broad spectrum population — that curious blend of all generations – take a look at Cherrywood. In East Austin, it offers several small enclaves developed from cotton fields and pastures of yesteryear. Sweet, stick-built homes from around the 1940s are nestled among tall trees and generous vegetation. New homes are more expensive, and multi-family structures offer a way to get in your own home and have rental income to help with the mortgage. Live tight for a couple years, then convert your primary residence to all rental income and move up yourselves.
Finding the Right Home in Austin, TX
Living within one’s means bodes well for the long-term, and seriously, who needs a shower the size of a walk-in closet, a walk-in closet the size of a bedroom and a bedroom the size of a shoe store? An enhanced peace of mind, reduced stress and financial freedom to save more, invest more and experience more are among the benefits of living affordable and managing money well with a long-term view.
There are many affordable homes all around and in Austin. There are even some bargains from the seller who wants to get out fast, the property left in an estate which needs to be closed, and the house that requires that ubiquitous hand of TLC. The real estate professionals at Habitat Hunters know the lay of the land and can guide you through the process of finding and getting into a house that provides value while fitting into your personal economic reality.
