AUSTIN GUIDES / NEW CONSTRUCTION
New construction homes in Austin, TX: the buyer's guide
Buying new construction homes in Austin, TX means signing more paperwork than a resale: a written buyer agreement before touring (required in Texas since January 1, 2026), a builder or TREC new-home contract, and special-district tax notices. In the 2025 tax year, the 61 municipal utility districts with a rate on the Travis County Tax Office list levied a median $0.679 per $100 of value, on top of county and school taxes. This guide walks through each step with the primary source for every rule.
David Eimer — Austin Guides · Facts reviewed
The numbers
- Written buyer agreement required before a showing
- Since Jan 1, 2026As of 2026-09-25
Texas Occupations Code §1101.563; it must state that broker compensation is not set by law and is fully negotiable.
Texas Occupations Code §1101.563, Written Agreement Required ↗
- Median 2025 MUD tax rate, Travis County Tax Office list
- $0.679 per $100As of 2025 tax year
Computed from 61 MUDs with a posted rate; the range was $0.0531 to $1.00.
Travis County Tax Office: 2025 tax rates by taxing unit (spreadsheet) ↗
- 30-year fixed mortgage rate, U.S. average
- 7.03%As of 2026-09-24
Freddie Mac PMMS; up from 6.95% a week earlier.
- Single-family units authorized by permit, Austin metro
- 1,147As of August 2026
Census Bureau via FRED; 1,153 in August 2025.
Census Bureau single-family units authorized by permit, Austin metro, via FRED ↗
- City of Austin residential new-construction permits issued
- 243As of 2026-08-26 to 2026-09-25
Trailing 30 days, City of Austin Open Data.
- Defect notice to a builder before suing or arbitrating
- 60 daysAs of 2026-09-25
Texas Property Code §27.004, by certified mail, return receipt requested.
Texas Property Code Chapter 27, Residential Construction Liability ↗
| Item | New construction | Resale |
|---|---|---|
| TREC contract form | 23-20 New Home Contract (Incomplete Construction) or 24-20 (Completed Construction) | 20-19 One to Four Family Residential Contract (Resale) |
| Seller's disclosure of condition | Not required for a new residence never occupied as a home (Prop. Code §5.008(e)(10)) | Required for a one-dwelling home unless another exemption applies (Prop. Code §5.008) |
| MUD and PID notices | Required before a binding contract when the lot is in the district | Same rule: any seller in the district must give them |
| Construction schedule | 23-20 sets a start deadline and a substantial completion date that cannot pass the closing date | Not applicable; the house exists |
| Buyer's inspector | Inspectors licensed by TREC or otherwise permitted by law, with access at reasonable times | Same contract language |
| Warranty | Builder's written limited warranty; 23-20 says no other express warranties and assigns manufacturer warranties | No builder warranty from the seller |
| Defect claims | Texas Property Code Chapter 27 notice to the contractor 60 days before suit or arbitration | Chapter 27 applies to claims against the contractor who built the home |
| Phase | Who | What the record shows |
|---|---|---|
| Foundation (City of Austin permit) | A registered design professional hired by the builder; city inspectors do not inspect new-construction foundations | A report that required special inspections are done, deficiencies addressed, and the foundation meets the residential code or engineered design |
| Framing, insulation, wallboard, and electrical, mechanical and plumbing rough-ins | City of Austin inspectors, scheduled by the contractor | Each stage passed against the city's residential inspection checklists |
| Building final | City of Austin inspector | Documents on site or uploaded: termite treatment letter, foundation report, wallboard report, duct and envelope leakage reports; may lead to a Certificate of Occupancy |
| Buyer's own inspections (for example before the slab pour, before drywall, before closing) | An inspector the buyer selects, licensed by TREC or otherwise permitted by law | The buyer's own report; TREC's license search confirms the inspector's license |
| Before a warranty term ends | The buyer's inspector, then the builder's warranty process | Items to submit while the builder's written warranty still covers them |
| Taxing unit | Type | 2025 rate per $100 |
|---|---|---|
| Travis County | County | $0.375845 |
| Travis Central Health | Health district | $0.118023 |
| Austin Community College | Community college district | $0.1034 |
| City of Austin | City | $0.524017 |
| Austin ISD | School district | $0.9252 |
| Del Valle ISD | School district | $0.9489 |
| Manor ISD | School district | $1.0814 |
| Pflugerville ISD | School district | $1.1069 |
| Leander ISD | School district | $1.0869 |
| Emergency services districts (18 listed) | ESD | $0.0266 to $0.10 |
| Municipal utility districts (61 with a rate) | MUD | $0.0531 to $1.00; median $0.679 (computed) |
What should you do before your first model-home visit in Austin?
Get your own representation lined up before you walk into an Austin builder's sales office. Texas Occupations Code §1101.563, in effect since January 1, 2026, requires a license holder working with a buyer to sign a written agreement before showing any home. The agreement must state the services, the end date, whether it is exclusive, and the broker's compensation, and it must say in conspicuous language that broker compensation is not set by law and is fully negotiable.
Builders set their own rules for recognizing a buyer's agent, and the first visit is where those rules bite. KB Home's published policy for agents says the agent must accompany the client at the first visit, register the client then, and show a written buyer-broker agreement that predates the purchase agreement. Other builders' policies differ and change, so ask each sales office for its written policy before you sign in.
The practical order is simple: sign a buyer agreement, agree in writing on how your agent is paid, then tour. The builder's on-site sales consultant works for the builder. Your own agent reads the contract, tracks the notices below, and negotiates price, upgrades, lot premiums and closing costs on your side.
Sources: Texas Occupations Code §1101.563, Written Agreement Required ↗ · TREC: What changes in 2026 about buyer/tenant representation in Texas ↗ · KB Home: For Real Estate Agents (broker cooperation policy) ↗
Which contract do Austin builders use, and what should you read in it?
The Texas Real Estate Commission promulgates two new-home contracts: form 23-20 for a home still under construction and form 24-20 for a completed home no one has lived in, both effective July 1, 2026. TREC says real estate license holders are required to use its forms. A builder selling its own homes may hand you its own purchase agreement instead, so ask which one you are signing and compare it to the TREC form.
In TREC form 23-20, read five places closely. The completion clause sets a construction start deadline and a substantial completion date, reached at final inspection and approval by government authorities and any lender; delays from acts of God, fire or other casualty, strikes, boycotts or unavailable materials extend it, but never past the closing date. The cost adjustment clause says change orders must be in writing and says how upgrades above the allowances are paid.
Also read the earnest money and option fee amounts, the financing terms, and the dispute clauses. Form 23-20 asks the parties to try mediation first and carries the notice that Texas Property Code Chapter 27 applies to construction defect claims. A builder's own contract may add arbitration or a different claims process, which your agent and, if needed, your attorney should flag before you sign.
Sources: TREC: Contracts (promulgated forms and notice on use) ↗ · TREC form 23-20, New Home Contract (Incomplete Construction) ↗ · TREC form 24-20, New Home Contract (Completed Construction) ↗
How do MUD and PID taxes change the cost of new construction in Austin?
A municipal utility district (MUD) sells bonds for water, sewer and drainage and repays them with its own property tax; 61 MUDs had a 2025 rate on the Travis County Tax Office list alone. Texas Water Code §49.452 requires the seller to give a written notice before a binding contract, and §49.4521 sets its headline: "Notice to purchaser of special taxing or assessment district." The notice states the district's current or projected tax rate and the bonds voters approved.
If the seller signs a contract without giving the MUD notice, Texas Water Code §49.452(f) lets the buyer terminate. But a buyer who gets the notice late and closes anyway is conclusively presumed to have waived that right. Look up any district by name in the TCEQ Water Utility Database to confirm its type and status.
A public improvement district (PID) works differently: it levies an assessment for improvements. Texas Property Code §5.014 requires the seller to give a prescribed PID notice before the contract. If it does not, §5.0141 lets the buyer terminate for any reason within seven days of receiving the notice, as long as the city or county filed the district's service plan.
Sources: Texas Water Code §§49.452-49.4521, Notice to Purchasers ↗ · Texas Property Code §§5.008, 5.014, 5.0141 (seller's disclosure and PID notice) ↗ · TCEQ Water Utility Database (water districts) ↗
What does a MUD add to an Austin tax bill? A worked example
The Travis County Tax Office posts every taxing unit's rate. For the 2025 tax year, 61 municipal utility districts on its list had a posted rate, ranging from $0.0531 to $1.00 per $100 of value, with a median of $0.679 (computed from the list). For comparison, the City of Austin's 2025 rate was $0.524017 and Travis County's was $0.375845. A home inside a MUD pays the MUD rate in addition to county, school and other units that apply at that address.
Here is the arithmetic, as an example only. The Austin metro median listing price was $450,000 in August 2026 (Realtor.com via FRED). At the 2025 median MUD rate, a $450,000 taxable value owes $3,055.50 a year to the MUD alone, about $255 a month; at a $1.00 rate it is $4,500. Exemptions, appraised value and each unit's own rate change the real bill.
The 2026 rates are still being adopted: the Travis County Tax Office says all 2026 rates should be posted by October 3. Before you sign, get the exact taxing units for the lot from the MUD notice and the tax office, and ask your lender to underwrite with the full combined rate.
Sources: Travis County Tax Office: Truth in Taxation summary and tax rates ↗ · Travis County Tax Office: 2025 tax rates by taxing unit (spreadsheet) ↗ · Realtor.com median listing price, Austin metro, via FRED ↗
Which inspections happen on an Austin new build, and who does them?
Inside the City of Austin, city inspectors check a new house in stages: framing, insulation, wallboard, the electrical, mechanical and plumbing rough-ins, and a building final that can lead to a Certificate of Occupancy. The contractor schedules each one. The foundation is the exception. The City of Austin's residential foundation checklist says city inspectors will not perform foundation inspections for new construction; the builder must provide a registered design professional's report instead.
That report must be uploaded to the permit and a copy provided at the final building inspection, alongside the termite treatment letter, wallboard report and duct and envelope leakage reports. Ask the builder for those documents. Suburban cities and county areas run their own permit and inspection programs, so confirm the process with the jurisdiction that issued the permit.
City inspections check code minimums, not workmanship you care about as an owner. TREC form 23-20 lets the buyer hire inspectors licensed by TREC or otherwise permitted by law, with access at reasonable times. Consider scheduling inspections before the slab pour, before drywall covers the framing, and before closing. Check any inspector's license on TREC's license holder search.
Sources: City of Austin Development Services: Building Inspections ↗ · City of Austin: Building Foundation Inspection Checklist, Residential ↗ · City of Austin: Building Final Inspection Checklist, Residential ↗ · TREC form 23-20, New Home Contract (Incomplete Construction) ↗ · TREC license holder search ↗
What does a Texas builder warranty cover?
Texas does not require a statutory builder warranty. The Texas Residential Construction Commission, which administered the old state warranty and inspection program, was abolished and its act expired on September 1, 2009, according to the Texas Sunset Advisory Commission. What you get is the builder's own written limited warranty, and TREC form 23-20 says the seller makes no other express warranties beyond the contract, a separate writing or the law.
Terms vary by builder, so read the actual warranty document. As one example, Perry Homes publishes a two-year workmanship warranty and a ten-year structural warranty, both starting at closing. Under 23-20, the builder also assigns you any assignable manufacturer warranties on appliances and equipment at closing. Ask whether the structural coverage is administered by a third party and how claims are filed.
If a defect is not fixed, Texas Property Code Chapter 27 sets the process. You send written notice by certified mail, return receipt requested, at least 60 days before filing suit or starting arbitration. The builder can inspect up to three times in the 35 days after it receives the notice and may make a written settlement offer within 60 days.
Sources: Texas Sunset Advisory Commission: Texas Residential Construction Commission ↗ · TREC form 23-20, New Home Contract (Incomplete Construction) ↗ · Perry Homes: Warranty ↗ · Texas Property Code Chapter 27, Residential Construction Liability ↗
Are builder incentives and preferred lenders worth it?
A builder may offer a mortgage rate buydown or closing-cost credit if you finance with its affiliated lender. The Consumer Financial Protection Bureau explains the tradeoff: discount points lower the interest rate in exchange for paying more at closing, and one point equals 1% of the loan amount. On a $360,000 loan, one point is $3,600 (computed). With the 30-year fixed average at 7.03% on September 24, 2026 (Freddie Mac), buydowns are a real lever.
Federal RESPA rules set the limits. When a builder refers you to an affiliated lender or title company, 12 CFR §1024.15 requires a written Affiliated Business Arrangement disclosure and bars requiring you to use that provider. Under 12 CFR §1024.2, a package discount is allowed only if it is optional, a true discount, and not made up by higher costs elsewhere in the settlement.
So test the incentive. Get a Loan Estimate from the builder's lender and one from an outside lender for the same loan amount, asking each for the same points or credits, as the CFPB suggests. Compare the rate, the APR and total closing costs, and ask whether the builder's credit survives if you use your own lender.
Sources: CFPB: What are discount points and lender credits? ↗ · 12 CFR §1024.15, Affiliated business arrangements (CFPB) ↗ · 12 CFR §1024.2, Definitions: required use (CFPB) ↗ · Freddie Mac 30-year fixed rate (PMMS) via FRED ↗
How long does it take to buy a to-be-built home vs a completed spec home in Austin?
A to-be-built Austin home runs on the builder's schedule, and the contract is where that schedule becomes enforceable. TREC form 23-20 has blanks for how many days after signing construction must start and the date the home must be substantially complete. Acts of God, fire or other casualty, strikes, boycotts and unavailable materials extend that date, but the form says completion can never extend past the closing date, so read both dates together.
A completed spec or inventory home uses TREC form 24-20 or the builder's equivalent, and it closes much like a resale because the house exists and can be inspected before you sign. Rate-lock length matters more on a to-be-built home: ask the lender what a lock long enough to cover the build costs, and what happens if completion slips.
For either path, put the key dates on one calendar: option period end, financing deadline, selection deadlines for finishes, the substantial completion date, your inspection dates, and closing. Selection deadlines are easy to miss; form 23-20 has the buyer make required selections within a set number of days after the builder's notice.
Sources: TREC form 23-20, New Home Contract (Incomplete Construction) ↗ · TREC form 24-20, New Home Contract (Completed Construction) ↗
Where is new construction happening around Austin?
Permits show where building is starting. In the Austin metro, 1,147 single-family units were authorized by building permit in August 2026, compared with 1,153 in August 2025, according to Census Bureau permit data via FRED. Counting apartments and other types, 1,924 private housing units were authorized in August 2026. Inside city limits, the City of Austin issued 243 residential new-construction building permits from August 26 to September 25, 2026.
Before choosing a community, check whether it sits inside a MUD or PID and inside or outside a city's limits. Each community guide in this series covers the county, school district, taxing units with adopted rates, district records and the builders the developer lists, all from official sources.
Metro permit counts describe the whole region, not any single community or price point. For a specific lot, the useful records are the permit history, the MUD or PID notice, the county tax office's rate for each unit, and the FEMA flood map.
Sources: Census Bureau single-family units authorized by permit, Austin metro, via FRED ↗ · Census Bureau private housing units authorized by permit, Austin metro, via FRED ↗ · City of Austin Open Data: Issued Construction Permits ↗
Common questions
Do I need a real estate agent to buy new construction in Austin?
No law requires one, but the builder's sales consultant represents the builder. Texas has required a written buyer agreement before an agent shows a home since January 1, 2026, and builders such as KB Home publish policies that recognize an agent only if the agent accompanies and registers the buyer at the first visit. Line up representation before touring.
What is a MUD tax in Austin, and how much is it?
A municipal utility district levies its own property tax to repay bonds for water, sewer and drainage. On the Travis County Tax Office list for the 2025 tax year, 61 MUDs had rates from $0.0531 to $1.00 per $100 of value, with a median of $0.679. The seller must disclose the district and its rate before you sign a contract.
Can I use a TREC contract to buy from a builder?
TREC promulgates New Home Contract forms 23-20 (incomplete construction) and 24-20 (completed construction), and Texas license holders are required to use TREC forms. A builder selling its own homes may present its own purchase agreement, so compare its completion, change order, warranty and dispute terms with the TREC form before signing.
Does the City of Austin inspect the foundation of a new house?
No. The City of Austin's residential foundation checklist says city inspectors will not perform foundation inspections for new construction. The builder must provide a report from a registered design professional, upload it to the permit, and provide a copy at the final building inspection. City inspectors handle framing, rough-ins and the final.
What warranty comes with a new home in Texas?
Only what the builder puts in writing; Texas's statutory builder warranty program ended when the Texas Residential Construction Commission was abolished on September 1, 2009. Terms vary: Perry Homes, for example, publishes a two-year workmanship and ten-year structural warranty. Defect claims follow Texas Property Code Chapter 27's 60-day notice process.
Do I have to use the builder's preferred lender to get incentives?
A builder cannot require you to use an affiliated lender under federal RESPA rules, but it can offer an optional discount or credit for using one. The CFPB suggests comparing Loan Estimates from more than one lender with the same points or credits, then checking whether the incentive outweighs a better outside rate or lower fees.
Take this to your next conversation
- Sign a written buyer agreement and settle how your agent is paid before the first model-home visit.
- Ask each builder for its written agent registration policy and follow it at the first visit.
- Ask whether the contract is TREC 23-20 or 24-20 or the builder's own, and read completion, change orders, warranty and disputes.
- Get the MUD and PID notices before signing, and look up each district in the TCEQ Water Utility Database.
- Find every taxing unit's rate for the lot on the county tax office list and budget with the combined rate.
- Schedule your own TREC-licensed inspections before the pour, before drywall and before closing.
- Get the builder's warranty document and the foundation engineer's report in writing.
- Compare a Loan Estimate from the builder's lender with an outside lender at the same points.
Sources and review date
Every figure on this page was checked against these sources on . Rates, rules and fees change; confirm them for a specific property before relying on them.
- Texas Occupations Code §1101.563, Written Agreement Required ↗
- TREC: What changes in 2026 about buyer/tenant representation in Texas ↗
- KB Home: For Real Estate Agents (broker cooperation policy) ↗
- TREC: Contracts (promulgated forms and notice on use) ↗
- TREC form 23-20, New Home Contract (Incomplete Construction) ↗
- TREC form 24-20, New Home Contract (Completed Construction) ↗
- TREC form 20-19, One to Four Family Residential Contract (Resale) ↗
- Texas Water Code §§49.452-49.4521, Notice to Purchasers ↗
- Texas Property Code §§5.008, 5.014, 5.0141 (seller's disclosure and PID notice) ↗
- Texas Property Code Chapter 27, Residential Construction Liability ↗
- TCEQ Water Utility Database (water districts) ↗
- Travis County Tax Office: Truth in Taxation summary and tax rates ↗
- Travis County Tax Office: 2025 tax rates by taxing unit (spreadsheet) ↗
- City of Austin Development Services: Building Inspections ↗
- City of Austin: Building Foundation Inspection Checklist, Residential ↗
- City of Austin: Building Final Inspection Checklist, Residential ↗
- TREC license holder search ↗
- Texas Sunset Advisory Commission: Texas Residential Construction Commission ↗
- Perry Homes: Warranty ↗
- CFPB: What are discount points and lender credits? ↗
- 12 CFR §1024.15, Affiliated business arrangements (CFPB) ↗
- 12 CFR §1024.2, Definitions: required use (CFPB) ↗
- Freddie Mac 30-year fixed rate (PMMS) via FRED ↗
- Realtor.com median listing price, Austin metro, via FRED ↗
- Census Bureau single-family units authorized by permit, Austin metro, via FRED ↗
- Census Bureau private housing units authorized by permit, Austin metro, via FRED ↗
- City of Austin Open Data: Issued Construction Permits ↗