Update on the remodeling and new home construction economy in Central Texas - October 2025

Oct 15

Written By John Bryant

New Home Construction:

Central Texas continues to see strong new construction activity. As of October 2025, the Austin area has over 4,000 active new construction residential listings.
A significant share of these home listings are experiencing price drops—especially in cities like Georgetown (over 73%) and Leander (over 77%)—indicating increased competition or adjustments to meet buyer expectations.
Inventory remains high and is offering more buyer choice, signaling a move toward a more balanced market, with sellers needing to stay flexible on pricing to keep up momentum.[1][2]
New construction homes are still appreciating, outperforming older homes due to modern features and energy efficiency—median new construction prices in Austin are around $549,000, with year-over-year median price increases of 6.8%.[3]

Remodeling:

Remodeling remains relevant as homeowners focus on value-adding improvements. Home improvements that offer the best ROI include kitchen and bath remodels, exterior upgrades, and energy efficiency improvements.[4]
As the housing market moves toward balance, many opt for remodeling rather than buying or selling, but overspending can be a risk—market advice is to invest strategically to maximize returns.

Wider Market & Economic Trends:

Local housing prices have stabilized (Austin median sales price: about $450,000), and closed sales have increased slightly year-over-year, despite modest headwinds in early 2025.[5][1]
Texas, as a whole, is leading the nation in new home construction permits, boosted by population growth, job opportunities, and migration from other states. The state is offering more affordable new builds compared to national averages, with median listing prices about $40,000 below the national median.[6]
The construction labor market remains robust, with construction jobs making up 7.2% of the Texas workforce—well above the US average.[7]
The outlook remains generally positive, though ongoing affordability concerns, stable-to-high mortgage rates, and material/labor costs remain key watch areas.[8][5]

Summary:

Central Texas’ construction and remodeling economy is strong and stable, with ample opportunity for both new builds and high-impact remodeling—especially as the market shifts toward balance. Competition among sellers and builders is driving pricing flexibility, but demand for modern amenities and energy efficiency keeps value growth healthy. Construction employment and broader state economic fundamentals also remain strong.

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1. https://www.unlockmls.com/news/june-2025-and-mid-year-central-texas-housing-report

2. https://robert.teamprice.com/articles/austin-new-construction-market-snapshot--october-2025

3. https://seelyproperties.com/do-new-construction-homes-in-austin-go-up-in-value/

4. https://holleyhomesrealty.com/articles/remodeling-roi-guide-which-home-improvements-pay-off-most-in-central-texas

5. https://www.spyglassrealty.com/blog/austin-economic-forecast.html

6. https://nationalmortgageprofessional.com/news/new-constructions-housing-boom-texas

7. https://www.constructionowners.com/news/texas-construction-jobs-exceed-u-s-average-at-7-2

8. https://acppubs.com/TXC/article/2F8913D6-2025-texas-construction-industry-forecast-all-signs-point-to-continuing-vitality-for-the-texas-construction-industry

9. https://trueluxfinehomes.com/blog/remodel-build-buy-home-austin

10. https://jbryantboyd.com/central-texas-remodeling-custom-home-cost-guide

11. https://www.searchaustinhomes.com/blog/central-texas-housing-market-moves-in-step-with-summer-trends/