New Construction Homes Under $350K in Austin, TX -- 2026 Buyer's Guide

Bottom line: You can buy a brand-new home under $350K in the Austin metro in 2026. Ten communities across Leander, Pflugerville, Hutto, Round Rock, Georgetown, and Austin proper have entry prices below that mark. The floor is $270K at Palmera Ridge in Leander (Highland Homes, Leander ISD). The trade-offs at this price point are real — smaller floor plans, MUD taxes, longer commutes, and in some cases weaker school districts — but so is the value.

I am William Zhang, a new construction consultant at eXp Realty who works exclusively in the Austin metro. I tour these communities every week, negotiate with every builder on this list, and track pricing changes month to month. This guide covers every community where you can get a new home under $350K right now, organized by what actually matters: price, school district, and what to watch out for. For the full metro overview including higher price points, see the master new construction guide.

What $350K Actually Gets You in Austin New Construction

At this price point, set your expectations accordingly:

• Square footage: 1,300-2,200 sqft. Most homes in the low $300s land between 1,400 and 1,800 sqft.
• Bedrooms/bathrooms: 3-4 bedrooms, 2-2.5 baths. A few communities offer 2-bedroom detached condos at the entry price.
• Garage: 2-car attached is standard. Some townhome products have 1-car or tandem garages.
• Lot size: Compact. Expect 40-50 foot wide lots on single-family homes. Townhomes and detached condos sit on even smaller footprints.
• Finishes: Builder-grade. Laminate countertops, LVP flooring, basic lighting packages. Upgraded finishes push you above the $350K ceiling fast.
• Energy efficiency: Varies dramatically. Meritage includes spray foam and tankless water heaters standard. Lennar bundles appliances and smart home. Most other builders at this price use standard insulation and equipment.

The honest comparison: a $350K new construction home gives you roughly the same square footage as a $300K resale in the same area, but with a 10-year structural warranty, new mechanicals, modern floor plans, and builder incentives that can offset the premium. Whether that trade-off works depends on your priorities.

The 10 Communities Where You Can Buy Under $350K

Leander

1. Palmera Ridge — From $270K

Palmera Ridge is the cheapest new construction in the Austin metro with a top-tier school district. Highland Homes starts at $270K for 3-bedroom plans on 50-foot lots. Perry Homes and Coventry Homes also build here, though Coventry starts in the $700s on larger lots.

• Builders: Highland Homes, Perry Homes, Coventry Homes
• Price range: $270K-$688K
• Size: 1,500-3,500 sqft, 3-5 bedrooms
• School district: Leander ISD (Tarvin Elementary on-site)
• Key highlight: Two pools, two amenity centers, parks, hiking trails. Leander ISD at a sub-$300K entry is extremely rare.
• Watch-out: The $270K entry gets you the smallest Highland floor plans with base finishes. MUD taxes apply. The community is in early phases, so construction activity will be ongoing for years.

This is my top recommendation for first-time buyers who prioritize school district. Leander new construction overview.

2. Deerbrooke Cottages — From $310K

Deerbrooke Cottages is a different product type: detached condos by Chesmar Homes. The HOA handles all exterior maintenance — lawn, landscaping, exterior paint — so you own the structure but not the yard work.

• Builder: Chesmar Homes
• Price range: $310K-$420K
• Size: 1,300-1,900 sqft, 2-3 bedrooms
• School district: Leander ISD
• Key highlight: Lock-and-leave lifestyle with HOA-maintained exteriors. Good for travel nurses, remote workers, or anyone who does not want yard obligations.
• Watch-out: Smaller floor plans than traditional single-family. 2-bedroom entry may not work for families with kids. HOA fees are higher than typical because of the exterior maintenance component.

Leander new construction overview.

Pflugerville

3. Meadowlark Preserve — From $291K

Meadowlark Preserve is Lennar’s 98-acre community in Pflugerville with their “Everything’s Included” model — appliances, blinds, smart home technology, and a base upgrade package are bundled into the price. The Lonestar Collection starts at $323K and the Claremont Collection starts at $322K based on current Lennar listings, though entry-level plans have been listed as low as $291K.

• Builder: Lennar
• Price range: $291K-$450K
• Size: 1,312-2,955 sqft, 3-5 bedrooms
• School district: Pflugerville ISD
• Key highlight: 25 acres of parks within a 98-acre community. “Everything’s Included” means fewer upgrade surprises. Near Amazon fulfillment center for warehouse workers.
• Watch-out: HOA is $85/month. Tax rate includes a 2.19% special assessment. Always calculate your total monthly payment with these added costs.

Pflugerville new construction overview.

4. Lakeside Meadows — From $310K

Lakeside Meadows is Meritage’s entry in Pflugerville with their standard energy-efficiency package: spray foam insulation, tankless water heater, ENERGY STAR appliances.

• Builder: Meritage Homes
• Price range: $310K-$430K
• Size: 1,500-2,800 sqft, 3-5 bedrooms
• School district: Pflugerville ISD
• Key highlight: Meritage’s energy-efficiency standard lowers monthly utility bills meaningfully. Lake-adjacent setting with trail access.
• Watch-out: “Lake-adjacent” does not mean lakefront lots at this price point. The entry-level plans are compact 3-bedrooms around 1,500 sqft.

Pflugerville new construction overview.

5. Edgebrooke — From $320K

Edgebrooke has been running one of the more aggressive promotions in the metro: six months of $0 mortgage payments covered by the builder on select inventory homes.

• Builders: Various
• Price range: $320K-$460K
• Size: 1,500-2,700 sqft, 3-5 bedrooms
• School district: Pflugerville ISD
• Key highlight: The “6 months $0 payment” incentive on select homes is real cash savings of $10K-$14K depending on your loan amount.
• Watch-out: That incentive is on select inventory homes, not all plans. Availability changes weekly. Call before visiting.

Pflugerville new construction overview.

6. Trails at Carmel — From $350K

Trails at Carmel is Ashton Woods’ entry in Pflugerville ISD, zoned to Weiss High School. Early-phase pricing means the builder has more room to negotiate.

• Builder: Ashton Woods
• Price range: $350K-$705K
• Size: 1,512-4,007 sqft, 3-5 bedrooms
• School district: Pflugerville ISD (Weiss HS)
• Key highlight: Early phase means flexible pricing and lot selection. Ashton Woods builds a slightly higher-end product than most builders at this price point.
• Watch-out: $350K is the floor, and most available plans are above that. You need to catch the right inventory home to stay under $350K.

Pflugerville new construction overview.

Hutto

7. Hutto Entry-Level Communities — From $300K

Hutto is the cheapest market for new construction in the Austin metro by a wide margin. NewHomeSource lists 44 communities under $300K here, and the median new home listing is $359K. Multiple builders including DR Horton, Lennar, and Meritage compete for entry-level buyers, which keeps pricing aggressive.

• Builders: DR Horton, Lennar, Meritage, Century Communities, and others
• Price range: $300K-$370K for entry-level single-family
• Size: 1,400-2,200 sqft, 3-4 bedrooms
• School district: Hutto ISD
• Key highlight: Lowest price per square foot for new single-family homes anywhere in the Austin metro. Multiple builders means strong competition and better incentives.
• Watch-out: Hutto ISD is not a top-ranked district. The commute to central Austin is 35-45 minutes on a good day. Some communities have MUD tax rates pushing total property taxes above 3%.

Hutto new construction overview.

Round Rock

8. Homestead Village — From $295K

Homestead Village is Meritage’s townhome community in Round Rock, adjacent to Old Settlers Park and across Highway 79 from the Kalahari Resort. Current pricing starts at $295K based on Meritage’s listings, down from $310K earlier — a sign of inventory they want to move.

• Builder: Meritage Homes
• Price range: $295K-$390K
• Size: 1,623-2,127 sqft townhomes, 3-4 bedrooms
• School district: Round Rock ISD
• Key highlight: Round Rock ISD at a sub-$300K entry is exceptional. Adjacent to Old Settlers Park (640 acres of trails, sports fields, disc golf). Meritage energy-efficiency package standard. HOA is $89/month.
• Watch-out: Townhome product, not single-family. Shared walls. Limited lot/yard space. Two-story plans only.

This is the best value play in Round Rock ISD right now. Round Rock new construction overview.

Austin

9. Whisper Valley — From $320K

Whisper Valley is the only community on this list with an Austin address. The headline feature is community-wide geothermal HVAC through the GeoGrid system, which reduces heating and cooling costs by up to 80% compared to conventional systems.

• Builder: GFO Homes (previously EcoHomes)
• Price range: $320K-$520K
• Size: 1,500-3,200 sqft, 3-5 bedrooms
• School district: Del Valle ISD
• Key highlight: Geothermal HVAC saves roughly $2,000/year on utilities. Austin city address. Community solar array and EV-ready infrastructure.
• Watch-out: Del Valle ISD is one of the lower-rated districts in the metro. The geothermal ESS assessment adds $55-70/month. PID assessments add $1,480-$2,004/year. Factor all of these into your monthly budget — the “savings” on utilities get partially offset by assessments.

Austin new construction overview.

Georgetown

10. Morningstar — From $346K

Morningstar just barely makes this list, with Meritage’s Americana Collection starting at $345,990. The Reserve Collection starts at $381,990 for larger plans.

• Builder: Meritage Homes
• Price range: $346K-$480K
• Size: 1,509-3,200 sqft, 3-5 bedrooms
• School district: Liberty Hill ISD
• Key highlight: Meritage energy-efficiency package standard. Strong amenity center with pool, pavilion, firepit, fishing pond, dog park, and trail system. Liberty Hill ISD is one of the fastest-improving districts in the region.
• Watch-out: Only the very entry-level Americana plans come in under $350K. Georgetown is 35-50 minutes from downtown Austin. Liberty Hill ISD, while improving, is still building out capacity.

For the full Georgetown breakdown, see the Georgetown new construction guide. Georgetown new construction overview.

Best Value by School District

If school district is your top priority, here is how the sub-$350K options sort:

Leander ISD (highest rated among these options)

• Palmera Ridge — from $270K (Highland Homes)
• Deerbrooke Cottages — from $310K (Chesmar, detached condos)

Round Rock ISD

• Homestead Village — from $295K (Meritage, townhomes)

Pflugerville ISD

• Meadowlark Preserve — from $291K (Lennar)
• Lakeside Meadows — from $310K (Meritage)
• Edgebrooke — from $320K (various)
• Trails at Carmel — from $350K (Ashton Woods)

Liberty Hill ISD

• Morningstar — from $346K (Meritage)

Hutto ISD

• Hutto entry-level communities — from $300K (various)

Del Valle ISD

• Whisper Valley — from $320K (GFO Homes)

The pattern is clear: better school districts cost more. Leander ISD under $350K exists but limits you to smaller homes or detached condos. Pflugerville ISD offers the widest selection in this price range. If school district does not matter to you (no kids, private school, homeschool), Hutto and Whisper Valley deliver the most house for the money.

Current Builder Incentives Under $350K

Builder incentives in 2026 are the strongest they have been since 2019. At the sub-$350K level, here is what is available:

Rate buydowns — Most builders offer 2-1 or 3-2-1 buydown structures through their preferred lenders. On a $320K home, a 3-2-1 buydown saves roughly $400-$500/month in Year 1. M/I Homes is advertising 4.875% on 30-year fixed FHA through M/I Financial for qualifying purchases.

Closing cost credits — $5,000-$15,000 is standard across most builders at this price point, typically contingent on using the builder’s preferred lender. Meritage and Lennar both offer closing cost assistance on inventory homes.

Lennar “Everything’s Included” — At Meadowlark Preserve, Lennar bundles appliances, blinds, smart home tech, and a base upgrade package into the list price. This is not technically an incentive — it is their pricing model — but it means fewer surprise costs at closing compared to builders who charge for every add-on.

Edgebrooke 6-month payment coverage — Select inventory homes at Edgebrooke include six months of $0 mortgage payments covered by the builder. On a $320K home with a $2,100 monthly payment, that is roughly $12,600 in real savings.

David Weekley Homes 50th anniversary — Up to 5-10% of base price as flex dollars in select Austin communities. This promotion runs through specific dates and applies to their communities above the $350K mark, but is worth checking if you can stretch your budget.

The key rule: always get a Loan Estimate from the builder’s preferred lender AND at least one outside lender. Compare total cost over 3-5 years including the incentive. Sometimes the builder’s lender wins. Sometimes it does not. I walk my clients through this comparison on every deal. For more on saving money, see how to save on new construction in Austin.

Watch-Outs at This Price Point

Sub-$350K new construction in Austin is real, but the trade-offs are real too. Here is what catches buyers off guard:

MUD taxes — Most communities on this list sit inside Municipal Utility Districts. MUDs add 0.5-1.0% to your property tax rate. On a $320K home, that is an extra $1,600-$3,200 per year compared to a non-MUD area. Whisper Valley adds a PID assessment on top of that. Always ask for the MUD/PID disclosure before signing anything.

Year 2 tax shock — Your first-year property tax bill is based on the unimproved lot value, not the finished home. Year 2 reflects the full assessed value and is typically 2-3x higher. On a $320K home, Year 1 taxes might be $2,000-$3,500. Year 2 jumps to $7,000-$10,000. Budget off the Year 2 number.

Compact floor plans — At $270K-$320K, you are looking at 1,300-1,800 sqft. That is livable for a couple or small family, but it is tight for a family of five. The 4-bedroom plans at this price point often have a fourth bedroom that is barely larger than a walk-in closet.

School district trade-offs — The cheapest options (Hutto, Whisper Valley) are in lower-rated districts. If schools matter, you are paying more for Leander ISD or Round Rock ISD, and the available floor plans are smaller. There is no way around this.

Commute times — Hutto to downtown Austin is 35-45 minutes without traffic. Georgetown is similar. Pflugerville communities are 20-30 minutes. Only Whisper Valley carries an Austin address, and it is on the far east side. If you work downtown, factor gas and time into your total cost of living.

Builder-grade finishes — At this price point, expect laminate countertops, basic cabinetry, and standard lighting. Upgrading countertops alone adds $3,000-$8,000. I generally recommend living with base finishes for a year and upgrading later when you know what actually bothers you.

For a deeper look at what goes wrong in new construction purchases, read common new construction mistakes in Austin.

Frequently Asked Questions

Where can I find new construction under $350K near Austin?

The most affordable new construction in the Austin metro starts in the $270s at Palmera Ridge in Leander (Highland Homes, Leander ISD) and the $290s at Meadowlark Preserve in Pflugerville (Lennar). Hutto offers the lowest floor at $300K. Round Rock has townhomes from $295K at Homestead Village, and Whisper Valley in Austin proper starts at $320K with geothermal HVAC.

What is the cheapest new construction home in Austin TX?

As of 2026, the cheapest new construction in the Austin metro is at Palmera Ridge in Leander, where Highland Homes starts at $270K for a 3-bedroom home in Leander ISD. The next cheapest is Meadowlark Preserve in Pflugerville at $291K (Lennar). Hutto has multiple communities starting at $300K.

Can I buy a new home in Leander ISD for under $350K?

Yes. Palmera Ridge starts at $270K with Highland Homes and Deerbrooke Cottages offers detached condos from $310K — both in Leander ISD. These are the only sub-$350K options in the top-rated Leander ISD.

Are there MUD taxes on affordable new construction in Austin?

Most sub-$350K communities are in MUDs, which add 0.5-1.0% to your property tax rate. On a $320K home, that is an extra $1,600-$3,200 per year. Always ask for the MUD disclosure and get a Year 2 tax estimate before signing a contract.

What trade-offs come with buying the cheapest new construction in Austin?

The main trade-offs are school district quality (Hutto ISD and Del Valle ISD are not top-ranked), longer commutes (35-45 minutes to central Austin from Hutto or Georgetown), smaller floor plans (some under 1,400 sqft), and MUD taxes that increase your effective tax rate. Leander ISD options under $350K exist but are limited to smaller homes or detached condos.

Next Steps

If you are shopping for new construction under $350K in the Austin metro, I can help you compare these communities side by side, negotiate builder incentives, and avoid the costly mistakes that trip up first-time buyers. Reach out or call me directly at (512) 766-3188. I respond to every inquiry personally.

For the full Austin new construction breakdown at all price points, see the 2026 Austin New Construction Guide.