Buying land in Austin, Texas, is a great idea. Whether you're building a custom home in the Hill Country or designing a modern residence near downtown, the cost of an acre in Austin varies widely depending on whether you’re buying land in the city or the surrounding areas. Understanding what it takes to buy land in Austin and build a house is the beginning of this journey. Let's get started.
The cost of land in Texas varies dramatically depending on location and development potential. In central Austin, in areas such as Westlake Hills or Tarrytown, the price of an acre often exceeds $1M, especially in established neighborhoods with high walkability and robust infrastructure. These are ideal if you prioritize proximity to downtown, access to schools, and the convenience of walking or biking to shops and dining. Typically, people go for lots smaller than an acre in this part of the city. The best neighborhoods in Austin vary based on your preferences, but they all consistently go for higher prices.
In suburban areas such as Lakeway and Dripping Springs, an acre may cost between $300,000 and $500,000. These areas offer more flexibility for custom design and typically face fewer zoning challenges.
Rural land in towns like Elgin, Manor, Liberty Hill, and Bastrop provides even greater value per acre. In these areas, 1-acre parcels are listed between $250,000 and $300,000, while 25 to 50-acre properties range from $1.2M to $3M, depending on access, topography, and development potential. While rural acreage is more affordable on paper, it often requires greater investment in infrastructure such as wells, septic systems, and road access.
We walk every site with our land-purchasing clients to ensure that the property is build-ready and suited to their long-term goals. Custom homes are a fantastic investment, especially when you start with the right piece of land.
Across Texas, the average cost of land is around $4,800 per acre. But that figure includes a wide range of property types, from remote ranch land to build-ready lots in growing cities. In Austin, the average cost to buy land and build a house is significantly higher.
Further outside the city, rural land becomes more affordable per acre, but it can come with additional development considerations. The average cost of an acre is great to know, but not particularly helpful when you're pricing out options. You can also explore the cost of building a custom home in Austin to learn more.
Buying land to build a house in Texas involves more than finding the perfect plot of land and signing a deed. It requires understanding local zoning laws, access to utilities, deed restrictions, and site conditions. Working with a builder who understands how to evaluate land and maximize its potential is crucial. The cost to build a home in Austin is a big investment, so you want to work with the right team.
At J. Angelo Design Build, we offer comprehensive guidance, starting with finding and purchasing land. We help our clients identify, assess, and secure land that supports their lifestyle and architectural goals. From feasibility studies to permitting, our process is structured to bring clarity and ease to what can otherwise be a complex transaction.
Sometimes folks wonder if it makes more financial sense to buy land and then build a house or to build in a planned community. It depends on what you’re comparing and your goals. Buying land and building a custom home may cost more upfront than purchasing a builder-grade home in a large subdivision. However, custom construction offers greater control, long-term value, and the ability to design a home that truly fits your needs. For many of our clients, that flexibility is worth the investment.
Land loans typically require a larger down payment than traditional mortgages. In most cases, buyers should expect to put down 20 to 50 percent, depending on whether the property is raw land or improved with access to roads and utilities.
Can you get a loan to buy land and build a house? You can get a land loan to acquire the land. Once all the design work is complete, you can get a construction loan that pays off the land loan and provides funds for construction. Some people get a construction-to-permanent loan that bundles the purchase of the land with the cost of construction. You can also obtain a construction loan, followed by a separate mortgage.
These loans then convert into a traditional mortgage once the home is completed. At J. Angelo Design Build, we have established relationships with lenders who specialize in this type of financing, and we can help guide you through the approval and funding process.
Is a land loan the same as a mortgage? Land loans differ from traditional mortgages in both structure and risk. Because there is no physical structure yet, lenders consider them riskier and typically require larger down payments, shorter terms, and higher interest rates. However, once your design and permits are in place, a construction loan can be secured and later converted into a standard home loan.
Some builders help you find land, and we're one of them. We're excited to show you how much easier we can make the land search process, which helps you find the perfect piece of property for your custom home.
Our team even has a licensed real estate professional specializing in sourcing and evaluating properties for new construction. Whether you’ve already purchased land or need help identifying the right lot, we ensure the land you buy will serve the home you want to build. The timeframe it takes to build a custom home isn't a short one, so it helps to know how to find the right property.
Before purchasing land, it’s essential to evaluate zoning, site slope, tree coverage, access to roads and utilities, and the presence of floodplains or protected areas. Our process includes detailed feasibility reviews and site visits, helping you understand not only the cost of buying land but what it takes to build on it.
Buying land in Austin offers unmatched potential, but it requires the right knowledge and guidance. From the cost per acre (or square foot) to the feasibility of building, every decision shapes the success of your project. We partner with you from the very beginning to identify the right land and deliver a home that brings their vision to life.
Whether you’re building on your lot in Austin or still looking for the perfect parcel, our team is here to help you move forward. Take a look at our FAQ page to see what other answers we can provide.
Working with our team means starting with the land and building with intention. If you’re searching for the right lot, our team offers hands-on support to help you evaluate location, layout, and long-term potential before you ever break ground.
Our process guides you from land selection through architectural design, permitting, and construction, with clear communication at every step. We build and remodel luxury homes throughout our service area in Austin and the surrounding areas with our various services. Whether you already own land or are still exploring your options, we help you make confident, informed decisions from the very beginning. Our portfolio shows you what happens when you build a home with us.
Contact us today for a consultation or to learn more.