Greater Austin

Austin, TX

Austin has moved from a large-lot, single-family code to allowing up to 3 units on most residential lots and lots as small as 1,800 sq ft (the HOME reforms). Texas is a non-disclosure state, so sale prices are not public and price estimates are less reliable than in most of the country.

💡 Upside tip

Before paying for 'extra unit' potential, pull the title commitment's Schedule B for private deed restrictions and HOA covenants: the city allows 3 units under HOME, but recorded restrictions can still forbid them, and courts enforce them.

Offers & competition

Offers use the state-promulgated TREC resale contract. The buyer pays the seller a small, negotiable option fee for an unrestricted right to terminate during an option period (commonly 5 to 10 days, notice by 5:00 p.m. on the last day), so all inspections must happen inside that window.

Closing & who pays

Texas is a title-company state: a title company acts as escrow and settlement agent, no attorney is required, and title insurance rates are set by the Texas Department of Insurance, so premiums are the same at every company. Texas SB 17 (effective Sept 1, 2025) bars people domiciled in China, Iran, North Korea and Russia from acquiring Texas real property, with exceptions; lawful permanent residents are generally outside it.

Transfer taxes

Texas has no state or local real estate transfer tax. Closing costs are mainly title insurance, lender fees and prorated property taxes.

Seller disclosures

Most resale sellers must give a Seller's Disclosure Notice (Tex. Prop. Code 5.008, TREC form OP-H) before the contract is signed; it covers the 100-year floodplain, past flooding, flood claims and FEMA/SBA aid. If it arrives late, the buyer gets a 7-day termination right; suburban homes also come with MUD and PID tax-district notices.

What you can build

HOME Phase 1 allows up to 3 units on SF-1, SF-2 and SF-3 lots, and HOME Phase 2 (May 2024) cut the small-lot minimum from 5,750 to 1,800 sq ft; compatibility limits now reach only 75 ft. Impervious cover (about 45% in SF-3), protected heritage trees (19 in. and up) and deed restrictions remain the real limits; state SB 15 only covers new subdivisions on 5+ acre tracts, while SB 840 allows multifamily by right on commercial land.

Permits & records

Permit history is searchable in Austin Build + Connect (AB+C); compare it with Travis CAD square footage and year built to spot unpermitted garage conversions or additions. Residential review has often taken months, so check the city portal for current timelines.

Property tax

Texas has no income tax but high property taxes, roughly 1.6% to 2.5% effective including MUDs. Since Nov 2025 the school homestead exemption is $140,000 ($200,000 for 65+ or disabled) and homestead values can rise at most 10% a year, but that cap resets on sale, so the seller's bill understates yours; protests (generally by May 15) are routine.

Rent rules

Our research found no rent-cap program for Austin. Texas SB 1567 (2025) bars cities from limiting occupancy by family relationship and may preempt owner-occupancy rules for ADUs; its exact scope is still unverified.

Key risks

East of I-35 the Blackland Prairie clays shrink and swell, so slab foundation movement is common; get a structural engineer's report if the inspector flags cracks. Suburban MUD and PID taxes can add about 0.5% to 1% or more, and buyers should check FEMA flood maps for every address.

⚠ Still verifying

Not re-verified: HOME Phase 1 details (FAR cap near 0.65, preservation bonus, Feb 2024 effective date), the 45% impervious-cover figure, whether Austin changed HOME after SB 15, the exact scope of SB 1567, SB 1202 third-party permit review, the current TREC contract version, and SB 15 / SB 840 population thresholds (sources say 90,000 or 150,000).

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.