Key Takeaways

Key Takeaways Massive Growth Continues: Texas added 473,000 new residents in 2025 and completed 186,000 new housing units, but demand still outpaces supply by roughly 14,000 units annually. Job Market Drives Housing: With 387,000 new jobs added and 3.2% unemployment, strong employment growth in tech, energy, and manufacturing continues fueling housing demand statewide. Secondary Markets Rising: Cities like College Station, Tyler, and Rio Grande Valley are seeing spillover growth as buyers get priced out of major metros where median prices now exceed $425,000. Quality Concerns Emerging: Rapid construction to meet demand is creating quality issues in some new developments, while rising property taxes are forcing longtime homeowners to sell.

Texas Housing Market 2026: The Real Story Behind the Growth Numbers

Look, I've been watching the Texas real estate market for over two decades, and let me tell you — what's happening in the Lone Star State right now is something else. Everyone's talking about the growth, the new construction, the people flooding in from other states. But as someone who deals with properties all across Texas through HOMESELL USA, I'm seeing both sides of this boom.

Here's the deal: Texas added over 473,000 new residents in 2025, making it the fastest-growing state for the fifth year running. That's like adding a city the size of Atlanta every single year. But what does this really mean for regular folks dealing with real estate? Let me break it down for you.

The Numbers Don't Lie — Texas Is Building Like Crazy

New construction in Texas hit record levels in 2025, with over 186,000 new housing units completed statewide. That's up 12% from 2024, and it's still not enough to keep up with demand. The Texas A&M Real Estate Center reports that we'd need about 200,000 new units annually just to maintain current inventory levels.

I had a homeowner call me last week from Frisco who said, "Uncle Charles, they're building houses so fast around here, I can't keep track of the new neighborhoods." That's the reality in the Dallas-Fort Worth metroplex, where 68,000 new housing permits were issued in 2025 alone.

But here's what the cheerful headlines don't tell you: all this new construction is creating some interesting situations. Builders are rushing to meet demand, which means some of these new developments are having quality issues down the line. At HOMESELL USA, we're already seeing calls from homeowners in 2-3 year old subdivisions dealing with foundation problems, electrical issues, and other construction defects.

Where Everyone's Moving — And Why It Matters

The migration patterns tell a fascinating story. According to the latest Census data, Texas gained the most residents from California (87,000), New York (42,000), Florida (38,000), Illinois (35,000), and Louisiana (29,000) in 2025.

The big metropolitan areas are still the magnets:

• Dallas-Fort Worth: Added 146,000 new residents
• Houston metro: Gained 98,000 people
• Austin-San Antonio corridor: Welcomed 76,000 newcomers
• San Antonio: Saw 45,000 new residents

But here's what's really interesting — we're also seeing significant growth in secondary markets like College Station, Tyler, Lubbock, and the Rio Grande Valley. These areas are becoming overflow markets as people get priced out of the major metros.

The Job Market Is Driving Everything

You can't talk about Texas housing without talking about jobs, and brother, the job market here is on fire. Texas added 387,000 new jobs in 2025, with unemployment sitting at just 3.2% statewide as of January 2026.

The big drivers are still:

• Technology: Austin alone added 23,000 tech jobs
• Energy: Both traditional and renewable sectors are booming
• Manufacturing: Especially semiconductors and automotive
• Healthcare: Growing with the population
• Logistics: Texas is becoming the distribution hub of America

I've seen this pattern a hundred times — jobs come first, then people follow, then housing demand explodes. Tesla's expansion in Austin, the new Samsung plant in Taylor, and dozens of other major corporate relocations are creating ripple effects throughout the state.

What This Means for Home Prices

Let's talk numbers. The median home price in Texas hit $342,000 in January 2026, up 8.3% from a year ago. That's actually slower growth than we saw in 2023-2024, but it's still well above the national average of 5.1%.

Here's the breakdown by major metros:

• Austin: $487,000 median (up 6.2%)
• Dallas: $425,000 median (up 7.8%)
• Houston: $368,000 median (up 9.1%)
• San Antonio: $295,000 median (up 8.5%)

But here's what I'm seeing on the ground that the statistics don't capture: there's a huge variation in different neighborhoods and property types. In some of the rapidly growing suburbs, I'm seeing brand new construction selling for premium prices while older homes just a few miles away are struggling to find buyers.

The Challenges Nobody Talks About

All this growth sounds great, but it's creating some real challenges. Infrastructure in many areas is struggling to keep up. I'm dealing with properties where the roads are still gravel, the water pressure is inconsistent, and the electrical grid is overloaded.

Property taxes are another issue. With home values rising fast and Texas relying heavily on property taxes for funding, many longtime homeowners are getting squeezed. Last month, I helped a retired couple in Pflugerville who were facing a $18,000 annual property tax bill on a home they bought for $89,000 in 1998.

Then there's the construction quality issue I mentioned. When builders are rushing to meet demand and labor is scarce, corners get cut. At HOMESELL USA, we're seeing more calls from people in relatively new homes dealing with major problems.

What's Coming Next

Looking ahead, the Texas Department of Housing and Community Affairs projects we'll need 1.8 million new housing units by 2030 to meet demand. That's a massive challenge, especially with construction costs still elevated and labor shortages persisting.

Interest rates are another wild card. Even though rates have stabilized around 6.8% for 30-year mortgages, any significant movement up or down will impact affordability and demand.

I expect we'll see continued strong growth in secondary markets as people get priced out of Austin, Dallas, and Houston. Cities like Killeen, Beaumont, and Waco are already seeing spillover effects.

What This Means for Property Owners

Whether you sell to us at HOMESELL USA or go the traditional route, here's what you need to know: timing matters more than ever in this market. If you've got a property in good condition in a growth area, you're sitting pretty. But if you've got a problem property — maybe it needs major repairs, has title issues, or you're facing foreclosure — don't wait. These situations don't improve with time, even in a hot market.

I've seen too many people think they can wait out their problems because "the market is so good." But banks don't care about market conditions when they're foreclosing, and code enforcement doesn't pause violations because your neighborhood is trendy.

The bottom line is this: Texas is going to keep growing, keep building, and keep attracting people from across the country. That's great news for the overall market, but every property situation is unique. Whether you're dealing with a windfall or a problem property, make sure you understand all your options.

If you're sitting on a property that's become more of a headache than an asset — whether it's in booming Austin or struggling East Texas — give Uncle Charles a call. No pressure, no judgment, just straight answers about what your options really are in today's Texas market.

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