The Housing Market in Round Rock Today
Round Rock, Texas is experiencing a dynamic housing market in 2025, shaped by robust population growth and economic expansion. The city’s proximity to Austin, highly rated schools, and attractive amenities continue to draw new residents, putting pressure on housing inventory. While the market has cooled slightly from its pandemic-era frenzy, demand remains strong and prices elevated compared to pre-2020 levels.
New housing developments are rising to meet the influx of residents, particularly in the downtown and northeast areas of Round Rock. However, construction has not kept pace with population growth, leading to a relatively tight supply of available homes and apartments. This imbalance between supply and demand is a key factor driving up housing costs for both renters and buyers.
Despite the challenging market conditions, Round Rock remains more affordable than central Austin while offering a high quality of life. Many residents are drawn to the city’s strong job market, family-friendly neighborhoods, and convenient access to shopping, dining, and recreation. As the region continues to grow, housing affordability will be a central issue shaping Round Rock’s future.
Renting in Round Rock: What’s Typical?
For renters, Round Rock offers a range of apartments and single-family homes at various price points. As of 2025, the average rent for a one-bedroom apartment in Round Rock is approximately $1,450 per month, while a two-bedroom unit typically costs around $1,800. These figures represent a significant increase from five years prior, reflecting the city’s rapid growth and strong demand for rental housing.
Rent prices can vary considerably depending on factors such as location, age of the property, and included amenities. Newer luxury apartments in downtown Round Rock often command higher rents, with one-bedroom units starting at $1,800 or more per month. These properties typically offer high-end finishes, resort-style pools, fitness centers, and other premium amenities.
More affordable rental options can be found in older apartment complexes and single-family homes in established neighborhoods. Many of these properties cater to working professionals, young families, and students attending nearby colleges and universities. While rent prices are lower, these units may have fewer amenities and less convenient access to downtown Round Rock’s dining and entertainment options.
Owning a Home in Round Rock
For those looking to purchase a home, Round Rock’s median home price stood at $450,000 in 2025. This represents a substantial increase from 2020 levels, when the median was closer to $300,000. The sharp rise in home prices has been driven by a combination of population growth, limited inventory, and low mortgage interest rates.
Based on a median home price of $450,000 and a 10% down payment, the estimated monthly mortgage payment for a typical Round Rock homebuyer is approximately $2,450. This assumes a 30-year fixed-rate mortgage at 4.5% interest. However, the total monthly cost of homeownership is significantly higher when factoring in additional expenses.
Property taxes in Round Rock are among the highest in the state, with most homeowners paying between 2.5% and 3% of their home’s assessed value annually. For a $450,000 home, this translates to $11,250 to $13,500 per year, or $940 to $1,125 per month. Homeowners insurance, private mortgage insurance (PMI), and homeowners association (HOA) dues can add several hundred dollars more to the monthly bill.
Renters vs. Homeowners: Who Lives Where?
Round Rock’s homeownership rate stands at approximately 65%, slightly higher than the national average. This means that roughly two-thirds of the city’s residents own their homes, while one-third are renters. The decision to rent or buy often depends on factors such as age, income, family size, and long-term plans.
Young professionals and recent college graduates are more likely to rent, often choosing apartments close to major employers or entertainment districts. These renters prioritize flexibility, amenities, and proximity to work and social activities. Families with children, on the other hand, often prefer to own homes in quieter residential neighborhoods with good schools and ample space.
Retirees in Round Rock are a mix of renters and homeowners, with many downsizing to smaller homes or opting for low-maintenance apartment living. While some seniors have paid off their mortgages and prefer to age in place, others sell their homes to free up equity and reduce housing expenses. Affordability is a key concern for retirees on fixed incomes.
Table: Typical Monthly Housing Costs in Round Rock
Here’s what housing costs might look like each month in Round Rock:
| Expense | Renting (1BR) | Owning ($450K) |
|---|---|---|
| Rent/Mortgage | $1,450 | $2,450 |
| Property Tax | – | $1,030 |
| Insurance | $15 (renters) | $150 (homeowners) |
| PMI | – | $190 |
| HOA Dues | $50 | $250 |
| Utilities | $120 | $280 |
| Total | $1,635 | $4,350 |
Estimates reflect mid-range properties and average usage.
What’s Driving Costs Up or Down?
Several key factors are influencing housing costs in Round Rock, with most putting upward pressure on prices. The city’s strong job market and growing population are driving demand for housing, while supply has struggled to keep pace. This imbalance is particularly acute in the for-sale market, where inventory is tight and bidding wars are common.
Round Rock’s proximity to Austin is also a major factor, as many residents commute to the capital city for work. As Austin’s own housing costs have skyrocketed, more people are looking to Round Rock for relative affordability. This “spillover” effect has contributed to rising prices and rents in Round Rock.
On the supply side, new housing developments are helping to ease some of the pressure, but construction has been hampered by labor shortages, supply chain issues, and rising material costs. Zoning regulations and neighborhood opposition have also slowed the pace of new development in some areas. As a result, housing supply is expected to remain tight in the near term, putting further upward pressure on costs.
FAQs About Housing in Round Rock
Is Round Rock affordable to live in?
Compared to Austin, Round Rock is relatively affordable, but housing costs have risen significantly in recent years. Many residents find that they need to budget carefully to afford rent or a mortgage payment, especially when factoring in additional costs like property taxes, insurance, and utilities.
Why are housing prices changing?
Housing prices in Round Rock are rising due to a combination of strong demand and limited supply. The city’s growing population, robust job market, and proximity to Austin are driving demand, while new construction has struggled to keep pace. This imbalance is putting upward pressure on prices and rents.
How does Round Rock compare to nearby cities?
Round Rock is generally more affordable than central Austin, but pricier than some surrounding communities like Pflugerville and Hutto. However, Round Rock offers a unique combination of good schools, strong job opportunities, and high quality of life that many residents find appealing.
Making Smart Housing Decisions in Round Rock
Navigating Round Rock’s housing market requires careful planning and budgeting, whether you’re renting or buying. It’s important to consider not just the monthly rent or mortgage payment, but also additional costs like property taxes, insurance, HOA dues, and utilities. These expenses can add up quickly, so it’s crucial to factor them into your monthly budget.
For renters, it’s also worth considering the trade-offs between price, location, and amenities. While newer luxury apartments downtown may be appealing, they often come with a hefty price tag. More affordable options can be found in older complexes or single-family rentals in quieter neighborhoods.
Homebuyers, meanwhile, should be prepared for a competitive market and potentially high closing costs. Working with a knowledgeable real estate agent and getting pre-approved for a mortgage can help streamline the process. It’s also important to budget for ongoing expenses like property taxes, which can be substantial in Round Rock.
Ultimately, making smart housing decisions in Round Rock requires a clear understanding of your budget, priorities, and long-term goals. By doing your research and planning ahead, you can find a rental or purchase a home that fits your needs and financial situation. For more information, check out our comprehensive guide to the cost of living in Round Rock.