Home builders work to meet market needs, buyers seek options to fit budgets

Central Texas has seen an influx of built-to-rent single-family home communities as well as other types of “missing middle” housing that serves as an intermediary between apartment living and outright homeownership.

Caso University Heights, YardHomes Meadow Lake and The Oaks on Chisholm Trail are just a few communities in Round Rock to come online in recent years. Additionally, new townhome developments such as the Avery Centre by Landsea Homes are offering potential buyers options at lower price points.

“The market has responded with all sorts of different building units, ownership and rental scenarios,” Dushkin said.

Missing middle housing is defined by the city of Round Rock as the absence of intermediate-density housing types, including multiplexes, bungalow courts and courtyard apartments. Missing middle housing helps fill the gap in types of housing created by two more prevalent housing types—high-density apartments and single-family homes.

Despite being low-density, single-family rental communities around the city can still serve the same purpose as other missing middle housing types.

The barrier to entry is lower, with renters not needing to provide a large down payment, city staff shared previously.

Nearby cities are also experiencing increased interest in this type of housing, with such communities announced in both Pflugerville and Hutto.

The conditions

Increased prices and interest rates are causing some hesitation for new buyers, despite high demand, local real estate agents Nova Ner Graham and Jamie Winkley of Key Group Austin said.

Graham said the local market remains strong, but may be daunting for some buyers who have become accustomed to lower interest rates.

She said home prices have put off a couple of her buyers, who decided to move into rentals rather than buy in the current market.

Jill Wasik, vice president of sales and marketing for the Austin division of Landsea Homes, said Round Rock’s mix of young professionals and the desire for affordable options is one factor that led the developer to build townhomes in the area.

“In communities like Avery Centre, we’ve seen strong demand for lock-and-leave, low-maintenance living that doesn’t sacrifice style or comfort,” Wasik said. “Our townhomes offer a thoughtfully designed solution for buyers seeking that sweet spot between affordability, quality and convenience.”

The city of Round Rock’s 2030 Comprehensive Plan outlines a goal to diversify housing types, including the built-to-rent model, to meet the community’s needs with homes at various price points.

Households become cost-burdened when more than 30% of income is spent on rent, mortgage payments and other housing costs, according to the U.S. Department of Housing and Urban Development.

In the Austin metro, the area median annual income in 2025 is $133,800 for a four-person household.

Missing middle housing types can provide an affordable option, a spokesperson for Platform Ventures, the developer for Caso University Heights, told Community Impact.

“With the rising cost of homeownership, especially for first-time buyers, there is a growing need for high-quality rental housing that still feels like home,” the spokesperson said. “Caso University Heights offers the space and privacy people want, without long-term financial commitment.”

Looking forward

Graham said she expects the local housing market to stabilize in the coming months, as the Federal Reserve keeps interest rates higher to reduce inflation.

“I know a lot of people have this fear that, ‘Oh my gosh, the economy is crashing,’” Graham said. “There’s so much inflation—everything is so expensive. It is, but it’s there for a reason.”

In today’s market, Graham said she’s seen sellers offer interest rate buydowns and to cover closing costs to entice buyers.

If these conditions persist, Dushkin suggested there might be increased interest in providing more missing middle-type housing.

A spokesperson for Platform Ventures confirmed the developer is also exploring additional developments in the area.

“We currently have two additional projects in Williamson County and are continuing to explore additional sites around the area for future developments,” the spokesperson said.