Are Home Prices Rising or Falling in Kyle, TX?
Kyle, a city near Austin, TX, is a market where prices are declining, offering buyers more affordability. Here's why, and what it could mean if you're looking to buy or sell.
The National Picture
Home prices across the United States rose 2% year over year in the three months ending August 2026, bringing the national median to $398,596. The typical U.S. household earns about $87,599 a year and spends roughly 34% of income on housing, down about 2 percentage points from a year ago. About 20% of listings have had a price drop, there are roughly 4 months of supply on the market, and homes spend a median of 50 days before going under contract.
Home Prices in the Austin Area
Across the Austin metro, the median sale price sits at about $414,000, down 6% from a year ago. The typical metro-area household earns around $109K and puts about 34% of that toward housing, down about 2 percentage points from last year. With 4-plus months of supply and homes sitting on the market for 73 days, Austin has shifted toward a buyer-friendly environment where affordability is improving.
Prices Decline Across the Board
The median sale price in Kyle fell about 6% from a year ago to $291,807, saving buyers roughly $18,296 compared to last year. At well under $300,000, Kyle is one of the most affordable cities near Austin. About 48% of listings have had a price cut, and homes take a median of 78 days to sell, 10 days longer than a year ago. About 12% of sales closed above asking, with the typical sale at 98% of list. The price decline is broad-based: Downtown Kyle fell 6%, Mid-Town Community dropped 6%, and Ranch South District declined 10%.
Why Are Prices Falling in Kyle?
New listings fell 24% from last year, and active listings dipped about 2%, so inventory is actually thinning. But pending sales also declined 4%, and homes are taking longer to sell. With 4.2 months of supply, the market is not dramatically oversupplied, but buyer demand has weakened enough to push prices lower. For buyers priced out of central Austin, Kyle's declining prices offer an increasingly accessible entry point into the metro. A household earning the metro median of about $109K would spend considerably less of their income on housing here than in most Austin neighborhoods.
| Neighborhood | Median Price | Price YoY | Price Drops | Months of Supply |
|---|---|---|---|---|
| Kyle | $291,807 | -5.9% | 48.2% | 4.2 |
| Downtown Kyle | $282,813 | -5.7% | 48.7% | 3.9 |
| Ranch South District | $450,358 | -9.9% | 57.9% | 5.9 |
| Mid-Town Community | $290,860 | -6.2% | 51.6% | 3.6 |
| Prairie Highlands District | $307,664 | -4.2% | 52.8% | 5.7 |
| Creekway West District | $309,850 | -3.1% | 57.2% | 3.7 |
Limited to neighborhoods with at least 10 home sales in the period.
All data comes from Redfin and represents a three-month rolling average ending August 2026. This article has been generated, in whole or in part, using generative artificial intelligence (AI) technology, with input from Redfin head of economics research Chen Zhao. While efforts have been made to ensure the accuracy and reliability of this information, you should independently verify all data, facts, and citations contained in this article before relying on it for any purpose. This information is not a substitute for advice from a real estate agent, financial advisor, or other licensed professional. Check the Redfin Data Center for additional in-depth housing market data.
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