Key Takeaways

Key Takeaways Housing costs continue climbing: Plano's median home price now exceeds $650,000, requiring household incomes around $170,000 to afford comfortably Supply shortage persists: New construction of 1,800 units annually falls short of demand from 2.5% population growth, keeping upward pressure on prices Affordability gap widening: Middle-class professionals are increasingly priced out, with townhomes and condos ($450K-$550K) becoming the entry point for many buyers Market stabilizing but selective: Mortgage activity has slowed from peak years but stabilized, with buyers being more discerning due to higher interest rates around 6.8%

Plano Texas Real Estate 2026: What Rising Costs and New Construction Mean for Homeowners

Look, I've been watching the Plano market for years, and 2026 is shaping up to be one of those pivot point years that homeowners need to pay attention to. Whether you're thinking about buying, selling, or just trying to figure out what your property is worth in today's market, there's a lot happening in this North Dallas suburb that affects your bottom line.

I'm Charles "Uncle Charles" Hernandez from HOMESELL USA, and I've helped thousands of homeowners across Texas navigate tricky real estate situations. Today, let's dig into what's really happening with homeownership trends in Plano — the good, the challenging, and what it means for regular folks trying to make smart decisions about their biggest investment.

The Numbers Don't Lie: Plano's Housing Costs Keep Climbing

Here's the deal with Plano right now. The median home price has pushed past $650,000 as of early 2026, which represents about a 12% increase from where we were this time last year. Now, before you panic or get too excited depending on whether you're buying or selling, let me put this in perspective.

Plano has always been one of the pricier suburbs in the Dallas-Fort Worth metroplex, and there are solid reasons for that. The school districts are top-notch, the job market is strong with major corporate headquarters, and the infrastructure keeps improving. But we're definitely seeing affordability become a real issue for middle-class families.

I had a homeowner call me last week who bought in Plano fifteen years ago for $280,000. Her house is now worth over $600,000, and while that sounds like a great problem to have, she's stuck. She can't afford to move anywhere else in the area because everything has gone up proportionally. That's the reality a lot of longtime Plano residents are facing right now.

Mortgage Activity: The Interest Rate Reality Check

Let's talk about what's happening with mortgages, because this is where the rubber meets the road for most homebuyers. With interest rates hovering around 6.8% in early 2026, the monthly payment on that $650,000 median-priced home is running about $4,200 with 20% down.

That means you need a household income of roughly $170,000 to comfortably afford the median home in Plano. Now, Plano does have higher-than-average incomes thanks to all the corporate jobs, but we're still pricing out a significant chunk of potential buyers.

Mortgage activity has slowed down compared to the crazy years of 2021-2022, but it's actually stabilized at a more sustainable pace. What I'm seeing is that serious buyers are still out there, but they're being much more selective. The days of bidding wars over every decent property are mostly behind us, which is honestly healthier for everyone involved.

New Construction: Playing Catch-Up with Demand

Here's where Plano faces a real challenge. New construction is happening, but it's not keeping pace with the demand from population growth. The city approved about 1,800 new housing units in 2025, but we're still running a deficit compared to the number of people and families wanting to move here.

Most of the new construction is happening in the northern and western parts of Plano, where there's still developable land. But here's the catch — these new homes are starting in the $700,000 range, sometimes pushing toward $800,000 or more. So we're not exactly solving the affordability problem with new builds.

The builders are responding to market demand, and right now that demand is for larger, higher-end homes. It makes business sense for them, but it leaves a gap in the market for starter homes and more affordable options.

The Townhome and Condo Factor

One trend I'm watching closely is the increase in townhome and condominium developments. These are providing some relief on the affordability front, with prices typically ranging from $450,000 to $550,000. It's still not cheap, but it's giving people a way to get into the Plano market without needing a $650,000+ budget.

Population Growth: Why People Keep Coming to Plano

Despite the high costs, Plano's population continues to grow at about 2.5% annually. The city is approaching 310,000 residents, and there are several factors driving this continued growth.

First, the job market remains strong. Major employers like Toyota North America, JPMorgan Chase, and numerous tech companies provide high-paying jobs that can support these housing costs. Second, the school district reputation continues to attract families who prioritize education. And third, the overall quality of life — low crime, good infrastructure, cultural amenities — keeps Plano competitive with other high-end suburbs.

But here's what I'm seeing behind the scenes at HOMESELL USA: not everyone who moves to Plano stays long-term. We're getting calls from homeowners who moved here for a job, stayed a few years, and now need to relocate for career reasons or family situations. The high costs mean some folks are choosing to cash out their equity and move to more affordable areas within Texas or other states entirely.

What This Means for Current Homeowners

If you currently own a home in Plano, you're sitting on significant equity. Most homeowners have seen their property values increase substantially over the past five years. But that equity is only valuable if you have a plan for it.

I've seen homeowners make three main moves in the current market:

• Refinance to access equity for home improvements or other investments (though current rates make this less attractive)
• Sell and relocate to areas with lower costs of living while keeping some of the equity gains
• Stay put and ride out the market, banking on continued appreciation

Each strategy has merit depending on your personal situation. The key is understanding your options and not getting caught in a position where you're house-rich but cash-poor.

The Affordability Squeeze: Who's Getting Priced Out?

Let's be honest about what's happening with affordability in Plano. Teachers, firefighters, retail managers, and other middle-class professions are finding it increasingly difficult to buy homes here. Even with dual incomes, many families are being pushed toward outer suburbs or having to consider townhomes and condos instead of single-family houses.

This isn't unique to Plano — it's happening in desirable suburbs across the country. But it does represent a fundamental shift in who can afford to live in these premium school districts and communities.

At HOMESELL USA, we're seeing more calls from people who inherited property in Plano but can't afford the property taxes and maintenance costs. Others are facing job changes or family situations that make the high cost of living unsustainable. Whether you sell to us or someone else, the important thing is recognizing when your housing situation no longer fits your financial reality.

Looking Ahead: What to Expect in Late 2026

Based on current trends, I expect Plano's housing market to continue its steady appreciation, but at a more moderate pace than we've seen in recent years. New construction will help somewhat, but it's unlikely to dramatically change affordability in the near term.

Interest rates will be a major factor. If they come down meaningfully, we could see renewed buying activity and price acceleration. If they stay elevated, the market will likely continue at its current steady-but-slower pace.

The bottom line for homeowners: stay informed about your property value and your options. Markets can shift, and being prepared is always better than being caught off guard.

If you're dealing with a property situation in Plano that doesn't fit the traditional market — maybe you need to sell quickly due to job relocation, inherited a house you can't maintain, or facing financial challenges — give Uncle Charles a call. No pressure, no judgment, just straight answers about your options in today's market.

Frequently Asked Questions

Frequently Asked Questions

What is the median home price in Plano, Texas in 2026?

The median home price in Plano has exceeded $650,000 as of early 2026, representing approximately a 12% increase from the previous year. New construction homes typically start around $700,000 and can reach $800,000 or more.

What income do I need to afford a home in Plano?

To comfortably afford the median-priced home in Plano ($650,000), you'll need a household income of roughly $170,000, assuming a 20% down payment and current interest rates around 6.8%. This calculation follows the general rule of spending no more than 28% of gross income on housing.

Is new construction keeping up with demand in Plano?

No, new construction is not keeping pace with population growth and demand. Plano approved about 1,800 new housing units in 2025, but this falls short of demand from the city's 2.5% annual population growth rate, contributing to continued price appreciation.

Are there more affordable housing options in Plano?

Townhomes and condominiums provide some relief on affordability, typically ranging from $450,000 to $550,000. While still expensive, these options allow buyers to enter the Plano market at a lower price point than single-family homes.

Why do home prices keep rising in Plano despite high costs?

Plano's prices continue rising due to strong job markets with major corporate employers, excellent school districts, low crime rates, and quality infrastructure. The population continues growing at 2.5% annually, maintaining demand that outpaces housing supply.