Texas continues to be one of the top destinations for people relocating from across the U.S.—and for good reason. With no state income tax, a strong job market, and plenty of sunshine, the Lone Star State is attracting buyers in record numbers. If you’re thinking of making the move, here’s what you need to know about the Texas housing market in 2025.
1. Home Prices Are Rising—but Still Affordable Compared to Coastal States
Texas home prices have increased in recent years, but they remain more affordable than those in states like California, New York, or Washington. In 2025, the average home price varies significantly by city—expect to pay more in Austin or Dallas, and less in areas like Lubbock or Waco. The key is finding the right location that balances budget and lifestyle.
2. Suburbs Are Booming
Suburban areas outside of major metros—such as Frisco near Dallas, Leander near Austin, and New Braunfels near San Antonio—are experiencing explosive growth. These communities offer newer homes, top-rated schools, and more space for your dollar. Remote and hybrid work is also fueling demand for homes outside city centers.
3. Texas Property Taxes Are High—Plan Accordingly
Texas may not have a state income tax, but it does make up for it with higher property taxes. Depending on where you move, your effective tax rate could be between 1.5% and 3%. Be sure to factor that into your monthly mortgage budget—and explore exemptions (like the Homestead Exemption) that may reduce your bill.
4. New Construction Is Hot—But Watch for Wait Times and Extra Costs
With so many people moving to Texas, new home communities are popping up everywhere. Builders are offering modern layouts, energy-efficient features, and customizable options. However, high demand can lead to waitlists, construction delays, and rising material costs. Always get everything in writing and understand the timeline before committing.
5. Every City Has Its Own Vibe
Texas is diverse—not just culturally, but in lifestyle. Austin is known for tech and live music. Dallas offers a big-city feel with luxury amenities. Houston boasts global diversity and a booming medical sector. San Antonio is steeped in history with a slower pace. Spend time exploring your options to find the city or suburb that fits your lifestyle.
6. It’s Still a Seller’s Market (For Now)
As of 2025, inventory remains low in many areas, giving sellers the upper hand. That means you’ll want to come prepared with a strong pre-approval, flexible terms, and a trusted local Realtor who knows how to negotiate and act fast. The market could shift, but for now, demand continues to outpace supply in many regions.
Final Word: Partner with a Local Pro
The Texas real estate market is dynamic, and having the right guidance can make all the difference. From navigating property taxes to identifying hidden gem neighborhoods, a local agent can help you make a confident, informed move.
Ready to explore your Texas home options? Let’s talk—I’m here to help every step of the way.