The 78704 Weekly
78704 Real Estate Market — September 2026
Let's start with the numbers — because unlike a lot of what you'll read on the internet about Austin real estate, these are actual data points from actual closed transactions.
Here's what the numbers are actually telling us. The median sale price in 78704 is down 7.2% year over year — which sounds alarming until you remember that 78704's 2022 peak was genuinely historic and even the correction is happening at $835,000. This is not a distressed market. This is a world-class neighborhood finding its floor after an unprecedented run.
Price per square foot is actually up 0.9% — meaning the market is correcting on price but not on intrinsic value. Buyers are getting more negotiating room than they had two years ago. Homes are selling faster than last year. And there are 364 active listings to choose from — the most options buyers have had in this zip code in years.
"78704 is still one of Austin's most sought-after zip codes. The upper end of the market continues to see activity, particularly for architecturally distinctive homes with premium lots, downtown views or unique outdoor spaces." — Redfin, September 2026
Translation: if you have been waiting for a window to buy in 78704 without getting into a bidding war with seventeen other people — this is closer to that window than anything we've seen since 2019. The families who buy here in 2026 are going to look back on this the same way the families who bought here in 2012 look back on that decision now.
New Openings and Neighborhood Updates
78704 and its immediate neighbors keep attracting names that know what they're doing. Here's what's new, what's coming, and what it means for the neighborhood.
Mendocino Farms Opens on South Lamar — Today
Mendocino Farms officially opened their third Austin location today — September 22, 2026 — at 1100 South Lamar Boulevard, Suite 1125. This marks their 102nd location nationally and their continued Texas expansion, following strong debuts at Arbor Trails and West 38th Street.
For those unfamiliar: Mendocino Farms is a California-born fast-casual concept known for elevated sandwiches, salads, and chef-driven menus. Their South Lamar location is one block from Record Realty's office. We are choosing to take that as a personal endorsement of the neighborhood.
Two Goose — Spanish Bar Coming to South First Street
Two Goose is coming to 1805 S 1st Street — a neighborhood bar serving Spanish drinks and bites, founded by Todd Duplechan and Jessica Maher of Lenoir, one of Austin's most respected farm-to-table restaurants. This is a team that knows what they're doing and has the South Austin credentials to back it up.
The Butcher's Daughter Coming to 1600 S. Congress
The Butcher's Daughter — a fully vegetarian, all-day cafe with locations in Los Angeles and New York City — is planting its first Texas flag at 1600 South Congress Avenue. The menu includes plant-forward takes on familiar items like Cauliflower Cacio e Pepe and Watermelon Tuna Tostada, open daily for breakfast, lunch, dinner, and weekend brunch.
A New York and LA concept choosing South Congress as its Texas debut is not a casual decision. It's a deliberate statement about which Austin street they believe in.
Clara's Day Dive — South Austin Beer Garden Relaunches as Cocktail Bar
The former South Austin Beer Garden has relaunched as Clara's Day Dive — and the transformation is significant. The concept has shifted from beer and pizza to a cocktail-forward menu with refreshing, affordable drinks around the $10 mark. There's also Puente Coffee and an Indian fried chicken trailer on site. The multi-concept outdoor setup is exactly the kind of neighborhood gathering space that South Austin does better than anywhere else in the city.
Community Events Worth Your Time
One of the things that consistently drives buyers to 78704 is the genuine community activity — the sense that things are actually happening here on any given weekend. This week is a good example.
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SEPT
25–27Blue Lapis Light — "Carried by the Winds" Aerial Dance
One Texas Center, 505 Barton Springs Road, Austin TX 78704 · Starts at $25 · An aerial dance performance suspended between earth and sky at a venue that overlooks Lady Bird Lake. Very 78704.
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SEPT
26Zimbabwean Music at Casa de Luz — Free
Casa de Luz, 1701 Toomey Rd, Austin TX 78704 · 1:00–3:00 PM · Free · Live performances by Ancient Forward and Mafaro Marimba, followed by a hands-on marimba workshop for all ages. The kind of Saturday afternoon that makes you glad you live here.
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SEPT
22–27"Come From Away" at ZACH Theatre
ZACH Theatre, 202 S Lamar Blvd, Austin TX 78704 · 7:30–9:00 PM · Starts at $28 · The Tony Award-winning musical about humanity at its best. Right here on South Lamar. In a city that has one of the best regional theater scenes in the country and regularly forgets to brag about it.
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SEPT
21Community Morning at Cosmic Coffee + Beer Garden
Cosmic Coffee, 121 Pickle Rd, Austin TX 78704 · 10:00 AM–12:00 PM · Free · Cosmic Coffee remains one of the best outdoor spaces in South Austin and one of the most underrated real estate selling points in the zip code.
78704 Real Estate — Frequently Asked Questions
What is the median home price in 78704 right now?
As of September 2026, the median sale price in zip code 78704 is $835,000, with a price per square foot of $526. Homes are averaging 52 days on market — actually faster than the 56-day average from this time last year, despite more inventory being available.
Is now a good time to buy in 78704?
The current 78704 market offers buyers more options and more negotiating room than at any point since before the pandemic. With 364 active listings, a 7.2% price correction from 2022 peaks, and homes still selling in 52 days, the market is active but not frenzied. For buyers who have been waiting for conditions that feel reasonable — this is closer to that moment than we've seen in years.
Why do national restaurant brands keep choosing South Lamar and South Congress?
Because the foot traffic, the demographics, and the cultural identity of 78704 make it one of the most compelling retail and restaurant corridors in Texas. Mendocino Farms, The Butcher's Daughter, and dozens of other nationally recognized brands have chosen South Austin specifically — and that sustained investment is one of the reasons residential property values in this zip code have held up better than most of the Austin metro over the long term.
How do new restaurant and bar openings affect home values in South Austin?
Walkability scores and neighborhood amenity density are among the most consistent drivers of residential property value. Research consistently shows that proximity to quality restaurants, coffee shops, bars, and entertainment venues increases buyer demand — and buyer demand is what drives prices. South Austin's restaurant culture is not a soft lifestyle perk. It is a hard real estate fundamental.
What neighborhoods are in zip code 78704?
Zip code 78704 includes some of Austin's most beloved neighborhoods: Bouldin Creek, Travis Heights, Zilker, Barton Hills, South Congress (SoCo), and portions of South First Street corridor. Each has its own character but all share the South Austin identity that buyers consistently seek out — walkable, culturally rich, and within minutes of downtown Austin, Lady Bird Lake, and Barton Springs Pool.
The Weekly Take
I've been working in South Austin real estate for over 20 years. I've watched this neighborhood survive the 2008 crash, the post-pandemic correction, and about fourteen cycles of "Austin is overpriced" takes from people who subsequently moved here anyway.
Here's what I know: 78704 is not a trend. It's a track record.
The median price is down 7.2% from the 2022 peak. I know that sounds like bad news. But the 2022 peak was an aberration driven by a once-in-a-generation pandemic relocation surge. The correction we're seeing is the market returning to sanity, not collapsing. And sanity in 78704 is still $835,000 median — because the fundamentals here are genuinely exceptional.
Meanwhile — Mendocino Farms just opened one block from my office. The Butcher's Daughter is coming to South Congress. Two Goose is bringing Spanish cocktails to South First. Zimbabwean musicians are playing for free at Casa de Luz this Saturday.
This zip code keeps investing in itself. The residents keep showing up. The brands keep choosing it. And the buyers who purchase here in 2026 are going to have a very good story to tell in ten years.
If you want to be one of them — you know where to find us.
— Bob Hachtel, Founder | Record Realty
Ready to Make a Move in 78704?
Record Realty is South Austin's boutique real estate team — based right here in the neighborhood we sell every day. Whether you're buying, selling, or just want to know what your home is worth in today's market, we're here.
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