Austin Monthly Economic Indicators – October 2026

The Austin economy

Significant revisions to data on Venture Capital funding data in PitchBook’s Q3 Venture Monitor have propelled the Austin region to the third-largest VC market in the U.S.– the region’s highest ranking ever. Following the inclusion of SpaceXSI’s $20B fundraise in Q1 2026, and reflecting the new designation of its principal office in Austin, TX, the Austin region has now garnered $32.8 billion through 2026 Q3, nearly double the amount raised in 2025’s previous record year for Austin of $17.6 B. Here are some additional insights in this month’s report:

Austin’s YoY job growth in August was 1.2%, exceeding the overall rate in TX (1.0%), and the U.S. (0.3%). The region tied as the 8th fastest for job growth among the Top 50 metros, adding 16,200 jobs.
Austin’s airport had the busiest August in history with 1.8 million passengers, surpassing the previous high in August 2022 by 17,500 passengers. YTD passenger activity is 4.0% higher than last year with 14.7 million passengers.
Home sales in the Austin region totaled 22,100 through August 2026, up 7.8% or 1,600 homes from last year. The average home sales price in August was $559,290, down from $579,347 in August 2025.

Venture capital investment

Venture Capital funding in Austin reached record levels with a total $17.6 billion raised in 2025, up 8.1% from $16.3 billion in 2024. These numbers as previously indicated were revised substantially in Pitchbook’s new 2026 Q3 Venture Monitor.

The Austin region continued it’s high pace of VC funds raised, with 2026 YTD data reaching $32.B, more than twice the 2025 YTD funds raised of $15.1B. With the revised data, Austin ranks as the third-largest VC market in the US, trailing only San Francisco/San Jose and New York. Previously ranked fifth, Austin has now surpassed both Los Angeles and Boston.

The largest deals in Q3 were Boring Co., $3.2B; Base Power, $1B, Aalo Atomics, $500M; Fab2, $500M; and Function Health, $450M.

Source:Pitchbook

Non-Farm Payroll Job Growth

For the year ending in August 2026, Austin has added 16,200 jobs, according to the Current Employment Statistics Program. Seasonally-adjusted jobs were down 0.1% or 2,100 from July to August 2026.

Austin’s job growth of 1.2% from August 2025 to August 2026 exceeded the overall rate in TX (1.0%) and the US (0.3%). Austin was ranked in a tie for the 8th best performing of the Top 50 metros in August 2026 for job growth. The metro with the fastest job growth was Salt Lake City at 2.5%, while San Jose was second with growth of 1.6%. Three metros were tied for third with growth of 1.5% including Charlotte, Fort Worth & Las Vegas.

Source:U.S. BLS, CES.

Top Job Gains/Losses by Industry, August 2026

The best performing industries in Austin over the last year were Professional & Business Services (5,600, 2.0%), Construction, Natural Resources, & Mining (4,000 additional jobs, 4.2%), and Leisure & Hospitality (3,700, 2.4%). Austin’s growth rate for Construction jobs significantly outperformed both TX and the US, while Professional & Business Services jobs matched the growth rate of TX and exceeded the US. The manufacturing sector added 2,500 jobs or 2.9% growth over the last year.

The worst performing industries within the Austin region were Information (-2,800, -5.5%), Government (-1,900, -0.9%), and Wholesale Trade (-1,700, -3.0%).

Source:U.S. BLS, CES.

Unemployment

After a steep 5.2% increase in the number of unemployed individuals in 2024, the number increased at a slower rate, 2.4% in 2025. The number of currently unemployed people is 3.6% higher than one year ago, while the number unemployed in Texas is also up by 1.0%. However, across the US 4.7% fewer people are unemployed.

In August 2026, the number unemployed totaled 61,164 in the Austin region, which is 2,126 more than one year ago. In TX, the state experienced 7,101 more unemployed over the past year, while the total across the US actually decreased by 366,000.

Source: U.S. BLS, LAUS

Unemployment Rate Comparison

The unemployment rate for the Austin region was 3.9% in August, which is 0.1 higher than one year ago. Austin’s rate continues to perform better than both TX and the U.S. at 4.6% and 4.3%, respectively. Other TX metros including Dallas-Fort Worth, 4.4%, San Antonio, 4.5%, and Houston, 5.0% were all higher than Austin’s rate. In August 2026, Austin had the thirteenth lowest unemployment rate of the Top 50 US metros.

Since recovering from a peak of 11.5% during COVID, Austin’s rate averaged 3.5% in 2023, 2024, and 2025, Austin YTD rate has averaged 3.7% this year. TX’s rate rose to 12.3% during COVID and declined to 4.0% in 2023 and has since averaged 4.2% in 2025, while YTD the rate is 4.5%. The US rate reached 14.4% in COVID and declined to 3.6% in 2023 but has since risen to 4.3% in 2025, while YTD the rate is averaging 4.4%.

Source: U.S. BLS, LAUS.

Workforce Hours & Earnings

The average number of hours worked for payroll jobs in the Austin region in Aug. 2026 was 35.9, up from 35.3 this time last year. For 2026 YTD, hours worked is down 1.7% from 2025 YTD. Texas employees worked the same amount this year at 36.2 as last, while the US average was up a tenth at 34.4.

Average hourly earnings rose in Austin were $36.11 in 2025, up 3.9% compared to increases of 4.6% in Texas and 4.0% in US. For the first eight months of 2026, average earnings in Austin were up 6% from $35.82 to $37.91. Increases both in the TX and the US were less profound at 3.5% and 3.4%.

Source:U.S. BLS, CES.

Metro Business Cycle Index

The Austin metro’s business cycle index continues to show growth in both the YTD and YoY comparison through August. After growth of 4.4% in 2025, the rate slowed to 2.8% for YTD 2026 compared to YTD 2025 growth of 4.7%.

Statewide, the business cycle index growth grew by 2.2% from YTD 2025 to YTD 2026, compared to growth of 2.9% from YTD 2024 to YTD 2025. Across Texas, YTD growth in the other major metros were -0.1% in San Antonio and 0.5% in Houston, while Ft. Worth and Dallas were 2.5% and 2.1%, respectively. Produced by the Federal Reserve of Dallas, the business cycle index reflects broad economic conditions including unemployment, inflation-adjusted wage and retail sales growth.

Source:Dallas Federal Reserve.

Consumer Price Index

After reaching a 40-year high of 8.0% in the annual percent change in 2022, the U.S. Consumer Price Index growth fell to 2.9% in 2024 and 2.6% in 2025. For the year ending August 2026, the CPI increased 3.3%. The biggest contributors to the increase were Energy, up 16.3% from last year with Fuel oil up 52.0% and Gasoline up 27.4%. Shelter was up 3.0%, while Medical services were up 2.5% from last year.

While a CPI is not produced for the Austin metro, the Houston and Dallas metro indices were both up by 1.3% in 2025, which is improved from inflation rates of 2.5% and 3.9% in 2024, respectively. YTD rates are 1.6% & 2.0%.

Source:U.S. BLS, CPI.

Sales Tax Receipts

Sales tax allocation payments to the City of Austin totaled $356 million in 2025, a slight increase of 0.4% over 2024. Previously, payments were up 2.4% in 2024. For Sep. 2026, the City of Austin received $31.5 million, up 5.1% from Sep. 2025. YTD 2026 receipts are up 8.0% compared to -0.8% in YTD 2025.

In Round Rock, receipts totaled $129M and were up 10.5% in 2025 following a drop of -1.4% in 2024 and growth of 1.4% in 2023. San Marcos received 0.5% more in sales tax receipts in 2025 to $39M, which follows a decline of -2.1% in 2024 and growth of 4.2% in 2023. For YTD 2026 receipts were up 58.8% in Round Rock and up 3.6% in San Marcos over YTD 2025.

Source: Texas Comptroller.

AUS Airport Passenger Activity

Annual passenger counts through the Austin airport hit 21.6 million passengers in 2025, a drop of 0.4% from 2024. Through August 2026, YTD totals are 14.7 million, up from the same time last year at 14.1 million. August 2026 had a total passenger volume of 1.80 million, making it the busiest August in airport history ahead of August 2022 with 1.79 million passengers.

Total cargo (including Belly freight, cargo and mail) totaled 276.4 million pounds in 2025, down 8.5% from 301.9 million pounds in 2024. The annual record for total cargo occurred in 2022 with 310.1 million pounds transported. August 2026 YTD cargo totaled 178.3 million pounds, which was a 1.5% decrease from the same period last year.

Source: City of Austin.

Patent Activity

Austin inventors are averaging 4,520 patents applied each year during the 2020’s, which is higher than the 3,762 averaged during the 2010’s. Patent activity totaled 4,442 in 2025, up 1.1% from 2024. Texas saw a 2.2% drop in patents in 2025, while the US was up 0.3%. In Austin, 2026 YTD patents filed totaled 3,644 through September, up by 10.2% from YTD 2025.

Austin represents approximately 32.2% of patent activity in TX this year. This is a truly remarkable data point since the Austin MSA only represents around 8% of the entire population of the State. Austin’s share of TX patents increased to 30.9% in 2025, up from 30.0% in 2024 and 29.5% in 2023.

Source:U.S. Patent & Trademark Office.

Housing Permit Activity

Building permits issued in the Austin region came down from historic highs of between 42,000 to 51,000 units in 2022 and 2021. Last year a total of 27,300 units were issued, down 15.4% from 2024. In Austin, 2026 YTD permits through August were 15,049 down from 17,425 last year, a 13.6% decrease. Nationally, total permits were down -0.7% this year.

For last year in the Austin region, the share of single-family units exceeded multifamily, a continuation from 2024. Previously from 2021 to 2023, multifamily permits exceeded single family. In August 2026, 1,147 single family permits were issued compared to only 777 multifamily units. This was a sizable increase in multifamily units compared to last year.

Source: U.S. Census Bureau Building Permits Survey.

Home Sales

Home sales in the Austin region peaked at 41,094 in 2021. In the past 3 years, total sales have been lower, averaging 30,500. However, for YTD 2026, sales are up by about 1,616 or 7.3% compared to the same time last year. Statewide, YTD sales are up 2.1% compared to 2025, while U.S. sales are up 2.4%.

The average sales price in the Austin region was $570,443 in 2025, a slight increase of about $3,000 from 2024. In August 2026, the average sales price was $559,290, which was down from $579,347 one year ago. In August 2026, months on inventory in Austin was 5.3 months, 0.3 months less than one year ago.

Source: TX A&M Real Estate Research Center.

Commercial Real Estate Activity

After having office vacancy rates of around 7 to 8% just before COVID in the Austin region, continued new construction delivery and softened leasing activity has brought the office vacancy rate up to 16.5% in 2025 compared to 16.0% in 2024. The current office market totals 140M SF, having added 20M SF of new inventory since 2020 Q2. Quoted lease rates in 2026 Q3 were $43.77 down from one year ago at $44.17.

Likewise, the Austin industrial market has grown to 179M SF, adding 66.7M SF since 2020 Q2 or 58% growth over 6 years. The vacancy rate reached 13.8% in 2025, up from 10.8% in 2024. Quoted lease rates were $15.19 in 2026 Q3.

Source: CoStar.

Upcoming Releases

Perhaps the most notable data release upcoming will be the Census Bureau’s American Community Survey (ACS) 1-year data which gives a detailed look at social, economic and demographic data for areas with 65,000 or more population on October 29th. Other upcoming data releases include:

The Texas Workforce Commission will release its monthly jobs & unemployment data for September on October 16th.
The BEA will release US GDP Advance Estimates for 2026 Q3 on October 29th.
The US Bureau of Labor Statistics releases its October Consumer Price Index for October on November 10th.