What $400K Gets You in Austin's Most Affordable Neighborhoods

While home prices are hitting records all across the US, it’s still possible to find quality homes under $400,000 across Texas, especially in Austin.

At a $400K budget, you'll be able to find great, affordable options for 3 bedroom houses within a 20 minute drive of downtown Austin and even closer to one of the main hubs of Austin - The Domain. Areas like Round Rock, Pflugerville, Leander, Cedar Park and South Austin can be great options. Areas closer to downtown like Mueller and the North Loop are still an option at $400K, but you'll have to sacrifice space for location, which many are willing to do. The higher-price point neighborhoods of Austin like Clarksville and Allandale are out of  reach at a $400K budget, but there's still plenty of inventory available at and below $400K.

In fact. with the current inventory of homes up by 20% from last year and mortgage rates still elevated, buyers are in a prime position to negotiate fantastic deals. Austin is poised for another of home price appreciation, so now is the perfect time to take advantage of your negotiating power. Whether you're a first-time homebuyer or looking to relocate, there are great options all over the city that fit a variety of needs and preferences.

Making the home purchase possible with affordable financing!

Purchasing a home in Austin doesn’t have to be out of reach. With financing options like 3% down conventional loans, it’s possible to get into a home with minimal upfront costs. On a $400,000 home, that's just $12,000 down. Plus, with closing costs typically around 2% of the purchase price, you can be looking at about $20,000 upfront to get the keys to your new place.

But that doesn't have to be $20,000 out of your pocket. The beautiful thing about Austin's market in 2025 is that sellers are ready to make a deal. That means you can negotiate having the seller pay for the upfront costs to buy a home. Or, for those wanting to lower their initial monthly payments, temporary buydowns are a fantastic option. These programs allow you to reduce your interest rate for the first few years, and many sellers are willing to contribute to this cost. Check out our guide to temporary buydowns here.

Even better, if you’re relocating to Austin, you might qualify for a $6,000 grant to help with closing costs and other fees. Learn more about this grant program here.

Now, let’s explore some amazing properties under $400K in some of Austin's best neighborhoods:

1007 Laurelleaf Dr, Pflugerville, TX 78660 (priced at $390,000) 

🏠 4710 Virginia Dare Ln, Austin, TX 78754

• $375,000 | 3 Bed | 2 Bath | 1,877 sqft | 2005
• Monthly Payment (P&I Only): $2,295.19/month with 3% down at 6.5%*
• Adorable home in the popular gated community of Colonial Place that's spacious and has recent updates

🏠 2512 Wheless Ln #5, Austin, TX 78723

• $395,888 | 3 Bed | 2.5 Bath | 914 sqft | 2016

• Monthly Payment (P&I Only): $2,570/month with 3% down at 6.5%*

• Modern house built in 2016 with high-end finishes, an efficient layout, and easy access to Mueller and downtown Austin.

🏠 5805 Shaded Cottage Ct, Austin, TX 78744

• $395,000 | 3 Bed | 2 Bath | 1,830 sqft | 2018

• Monthly Payment (P&I Only): $2,427.21/month with 3% down at 6.5%*

• Modern single-story home with upgraded finishes, a spacious open floor plan, and a beautifully landscaped backyard. Located in a growing community with easy access to downtown.

🏠 1635 Bayland St, Round Rock, TX 78664

• $399,000 | 4 Bed | 2 Bath | 2,254 sqft | 2007

• Monthly Payment (P&I Only): $2,570/month with 3% down at 6.5%*

• Spacious single-story home with modern updates, large open-concept living space, and a private backyard in a family-friendly community.

🏠 939 Alamo Plaza Dr, Cedar Park, TX 78613

• $399,000 | 3 Bed | 2 Bath | 1,778 sqft | 2015

• Monthly Payment (P&I Only): $2,570/month with 3% down at 6.5%*

• Beautifully maintained home in a quiet community with modern finishes and a spacious backyard, perfect for family gatherings.

🏠 6501 Spotted Eagle Dr, Leander, TX 78641

• $399,000 | 3 Bed | 2 Bath | 1,916 sqft | 2016

• Monthly Payment (P&I Only): $2,570/month with 3% down at 6.5%*

• Beautiful single-story home with modern finishes, open-concept living, and a spacious backyard. Located in a quiet neighborhood with great amenities.

🏠1007 Laurelleaf Dr, Pflugerville, TX 78660

• $390,000 | 4 Bed | 2.5 Bath | 2,660 sqft | 2005
• Monthly Payment (P&I Only): $2,570/month with 3% down at 6.5%*
• Steps away from the trail system with ample living space.

🏠 9209 Sweetgum Dr #153, Austin, TX 78748

• $399,853 | 3 Bed | 2.5 Bath | 1,675 sqft | 2012
• Monthly Payment (P&I Only): $2,452.44/month with 3% down at 6.5%*
• Modern finishes on a large lot, ideal for outdoor entertaining.

🏠 1228 Vogel Dr, Georgetown, TX 78626

• $370,000 | 3 Bed | 3 Bath | 1,863 sqft | 2010
• Monthly Payment (P&I Only): $2,263.75/month with 3% down at 6.5%*
• Spacious layout with modern finishes in a quiet neighborhood

These listings highlight just a few of the fantastic opportunities available for $400,000 or less in some of the best neighborhoods around Austin. Whether you’re seeking suburban peace, proximity to downtown, or family-friendly communities, there’s something here for you. If you're ready to explore these options, please give me a call at 512.881.5099 or complete this quick form, and I'll be in touch as soon as possible to assist in making your dream of homeownership a reality.

*All monthly payments are based on a 3% down, conventional rate loan for first-time homebuyers with a 720+ credit score. Interest rate used is 6.5% for estimation purposes. All listings mentioned in this article are subject to availability and price changes.