Key Takeaways

Key Takeaways Texas added 473,000 new residents and 485,000 jobs in 2025 , creating sustained housing demand that outpaces new construction by approximately 15,000 units annually Major metros and smaller cities are both experiencing growth , with Austin, Dallas-Fort Worth, and Houston leading, but places like College Station and Tyler seeing 6-8% population increases Interstate migration remains strong , with 68,000 Californians, 34,000 Floridians, and thousands from New York and Illinois relocating to Texas in 2025 Even distressed properties have value in this market due to strong land appreciation and investor demand for renovation or redevelopment opportunities

Texas Housing Boom: Why the Lone Star State Keeps Growing (And What It Means for Property Owners)

Look, I've been watching the Texas real estate market for over two decades, and what's happening right now is something else. While other states are dealing with housing slowdowns, Texas just keeps trucking along like it's got somewhere important to be.

I had a caller from Austin last week tell me, "Uncle Charles, I can't believe what my neighbor's house sold for." That's a conversation I'm having with folks all across the Lone Star State these days. But here's the thing — whether you're sitting on a goldmine or dealing with a problem property, you need to understand what's really driving this market.

The Numbers Don't Lie: Texas Is Still Growing Like Crazy

Let me break down what's actually happening in Texas housing right now, because the numbers tell quite a story.

Texas added over 473,000 new residents in 2025 alone, making it the fastest-growing state in the nation for the fifth year running. That's like adding a city the size of Kansas City every single year. And guess what? All those people need somewhere to live.

The state issued building permits for 185,000 new housing units in 2025, up 12% from the previous year. But here's the kicker — even with all this construction, we're still not keeping up with demand. The Texas A&M Real Estate Research Center reports that the state needs approximately 200,000 new units annually just to meet current population growth.

Where Everyone's Moving

The migration patterns tell the whole story. Austin-Round Rock added 89,000 new residents last year. Dallas-Fort Worth? A whopping 170,000. Houston brought in another 95,000, and even San Antonio saw 65,000 new faces.

But it's not just the big metros anymore. I'm seeing action in places like College Station (up 8.2%), Tyler (up 6.8%), and the Killeen-Temple area (up 7.1%). These smaller markets are exploding as people get priced out of the major cities but still want that Texas lifestyle.

Jobs, Jobs, Jobs: The Economic Engine Behind the Growth

Here's what's really driving all this movement — Texas added 485,000 new jobs in 2025, leading the nation in job creation for the third consecutive year. And we're not talking about just any jobs.

The tech sector alone added 89,000 positions, with major expansions from Tesla, Samsung, and dozens of smaller companies setting up shop. Energy is booming again with 52,000 new positions, thanks to both traditional oil and gas operations and the massive renewable energy buildout happening in West Texas.

Manufacturing is having a moment too — 67,000 new manufacturing jobs as companies continue reshoring operations. I've talked to people moving here from Michigan, Ohio, and Pennsylvania who are making more money than they ever dreamed of back home.

The Interstate Migration Story

California still leads the pack of people moving to Texas — about 68,000 Californians made the move in 2025. But they're not alone. Florida sent 34,000 (mostly people tired of hurricane insurance costs), New York contributed 31,000, and Illinois added another 28,000.

What's interesting is the age demographics. About 65% of interstate migrants are between 25-44 years old — prime home-buying age. These folks are coming with savings, stable jobs, and they're ready to put down roots.

Construction Can't Keep Up (And Why That Matters)

Even with all this building activity, we're still behind the curve. The average time to get a building permit approved in major Texas metros ranges from 4-8 months. Labor shortages are pushing construction timelines out even further.

Material costs are still elevated — about 15% higher than pre-2020 levels. Land costs have jumped dramatically too. Raw land suitable for development in the Austin area is running $45,000-$65,000 per acre, compared to $25,000-$35,000 just three years ago.

All of this means one thing: existing housing inventory remains tight. Days on market for move-in ready homes in good school districts? We're talking 18-25 days on average across major Texas metros.

What This Means for Different Types of Property Owners

Now, here's where it gets interesting for different situations, because not every property owner is in the same boat.

If You Own a Nice Home in a Good Area

Congratulations — you're sitting pretty. Values continue climbing steadily. The median home price in Texas hit $365,000 in early 2026, up 8.2% year-over-year. In hot markets like Austin ($587,000 median) and parts of Dallas ($428,000 median), appreciation is running even higher.

If You're Dealing with a Problem Property

Here's something a lot of people don't realize — this growth boom creates opportunities even for distressed properties. We're seeing investors snap up properties that need work because the underlying land values are so strong.

That house with foundation issues in a growing suburb? The fire-damaged property near a new employment center? These situations that used to be major headaches now have real value because someone will buy that land and either fix it up or tear it down and start over.

At HOMESELL USA, we're seeing this firsthand. Properties that might have sat on the market for months in other states are moving quickly here in Texas, even when they need major work.

The Infrastructure Challenge

All this growth comes with growing pains. Traffic congestion in major metros is getting worse. School districts are scrambling to build new campuses. Water and sewer systems are being stressed.

The state has allocated $142 billion for infrastructure improvements over the next decade, but that takes time. In the meantime, properties in areas with good infrastructure access are commanding premium prices.

Looking Ahead: What to Expect

Based on current trends and what I'm seeing in the market, Texas isn't slowing down anytime soon. The Federal Reserve Bank of Dallas projects continued population growth of 400,000+ annually through 2028.

New housing construction is expected to ramp up as permitting processes improve and more builders scale up operations. But even optimistic projections show the supply-demand imbalance continuing for at least the next 3-4 years.

Whether you're a traditional homeowner riding this wave or someone dealing with a challenging property situation, the key is understanding that Texas real estate operates in a different environment than most of the country. We've got fundamental economic drivers — job growth, population growth, business-friendly policies — that create sustained demand.

At HOMESELL USA, we work with property owners across the spectrum. Maybe you inherited a house that needs $50,000 in repairs but it's in a growing area. Maybe you're facing foreclosure but your property has appreciated significantly. Maybe you just want to cash out and move somewhere with lower cost of living.

The point is, in this Texas market, almost every property has value to someone. Whether you go the traditional route or need a quick cash sale, the fundamentals are working in your favor.

If you're sitting on any kind of Texas property and wondering what your options are, give Uncle Charles a call. No pressure, no judgment — just straight talk about what this crazy Texas market means for your specific situation. Because in a state that's adding 1,300 new residents every single day, there's probably more opportunity than you think.

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