Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Texas real estate spreadsheet template.
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Have you noticed how Texas is booming? If you’ve been thinking about investing in real estate, now might the perfect time to jump in.
Check out this article for 13 eye-opening stats that explain why Texas property is the place to be. Ready to make your move? Our Texas real estate investment spreadsheet is here to help you map out your next big step.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Texas home sales have skyrocketed by 10%
Home sales in Texas have surged by 10% year-over-year, signaling a booming real estate market driven by strong demand.
This increase reflects growing interest and confidence in Texas, attracting buyers for its robust economy, diverse job opportunities, and appealing living conditions.
The 10% rise in transactions highlights the vibrant nature of Texas's real estate landscape, making it an exciting time for both buyers and sellers.
Sources: Redfin, Texas Public Radio
We created this infographic to show how property prices vary across different cities in Texas. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
2) Texas gained almost 500k new residents, fueling a real estate boom
From July 2022 to July 2023, Texas gained 473,453 new residents, the highest increase among U.S. states.
In 2023, over 612,000 people moved to Texas, while about 478,000 left, resulting in strong net migration.
This population shift is boosting Texas's real estate market, as people leave high-cost states like California and New York for Texas's affordable housing and job opportunities.
The influx is driving housing demand, increasing market activity, and raising property values.
Texas's real estate market is thriving, with high demand stimulating the economy and promising continued growth.
Sources: Texas2036, Kera News, New York Post, Fox26, Chron
- Yes, Texas is a good place to invest in real estate in 2025
3) Texas employment surged by 3.1%, outpacing the national average
Texas employment grew by 3.1%, surpassing the national average, with significant gains in manufacturing, financial activities, and government sectors.
This growth indicates a thriving economy, boosting housing demand as more people seek to settle and invest.
The expansion in these sectors highlights Texas's economic vitality and attractiveness to businesses and individuals.
Manufacturing and financial activities provide a stable foundation for real estate demand, drawing new residents and investors.
This data suggests a booming Texas real estate market in 2025, driven by a strong job market and economic prosperity, making it an ideal time to invest.
Sources: Federal Reserve Bank of Dallas, NewsWeek
4) Texas's real estate market is thriving with a 17.6% surge in homes for sale
The number of homes for sale in Texas has surged by 17.6% year-over-year, indicating a thriving real estate market.
This increase suggests sellers are optimistic about finding buyers, reflecting a robust market driven by a strong economy, job growth, and population influx.
The growth highlights Texas as a desirable location for living, working, and investing, underscoring its dynamic real estate environment.
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5) Short-term occupancy rate jumped 26% year-over-year in Austin and Dallas
A 26% year-over-year increase in Dallas occupancy rates signals a booming Texas real estate market, driven by rising demand for short-term rentals (STRs).
High occupancy in cities like Austin and Dallas suggests continued growth into 2025, fueled by vibrant tourism and events.
During Austin's SXSW festival, occupancy hit 58.54%, highlighting the impact of major events on STR demand.
This trend extends across Texas, with tourism-heavy cities attracting more travelers and boosting the need for short-term accommodations.
These statistics confirm Texas's thriving real estate market, offering investors reliable returns.
As a hub for cultural events and tourism, Texas remains an ideal location for real estate investment.
Sources: RedAwning, PricewaterhouseCoopers and the Urban Land Institute
6) Texas' vacancy rate dropped to 8.6%-9.2% recently
Texas' vacancy rate has decreased from 11.0% to 8.6%-9.2% between 2021 and 2023, indicating a strong real estate market.
This decline suggests increased demand, leading to higher property values and rental prices, benefiting investors and developers.
The trend points to continued construction to meet demand, further boosting the market.
With these factors, Texas remains an attractive destination for residents and investors, ensuring a thriving real estate market in 2025.
Source: United States Census Bureau
7) Life is cheaper and incomes are rising in Texas
In 2024, Texas had a cost of living 7% below the national average, with housing costs 17% lower.
This affordability, along with an 8.49% increase in median household income, drives the state's real estate boom.
Lower living and housing costs attract individuals and families, enabling more people to afford homes and fueling real estate demand.
Rising incomes provide Texans with more disposable income for property investments, whether buying a first home, upgrading, or investing in rentals.
This combination of affordability and income growth attracts new residents and encourages local investment, making Texas real estate thrive in 2025.
Source: RentCafe
We created this infographic using the latest market data to highlight the most competitive real estate markets in Texas is vs. other major cities in Texas. It shows the percentage of sales above the list price, a key indicator of market competition.
8) Texas's median home price is (still!) below the national average
In 2024, Texas's median home price was $306,841, below the national average, highlighting its affordability and attracting buyers and renters.
Middle housing options like duplexes and townhomes, 30% cheaper than single-family homes, further boost the market's appeal, especially to migrants.
A modest 1.3% year-over-year increase in median home prices indicates a stable, appreciating market, attractive to investors and homebuyers.
These factors underscore Texas's booming real estate market in 2025, characterized by affordability, diverse housing, and steady property value growth, making it a prime location for real estate opportunities.
Sources: Texas Real Estate Research Center, Norada Real Estate Investments, Redfin
9) There are 18% foreign-born residents in Texas ... and they are driving demand
In 2025, Texas's real estate boom is fueled by 17.9% of its population being foreign-born, surpassing the U.S. average of 14.3%.
This demographic significantly boosts housing demand, especially in urban and suburban areas, as they invest in real estate.
Texas's population growth, comparable to Arizona's, further increases demand for diverse housing, particularly middle-income options.
The state's cultural diversity, with 35.4% speaking a non-English language at home versus the national 22.5%, enriches its community and drives tailored housing developments.
These factors collectively propel Texas's real estate market, attracting new residents and investors.
Sources: HousingWire, United States Census Bureau
10) Dallas ranks #1 in 2025 across all U.S. cities
Dallas boasts a 5-year annualized return of 7.9% and a 10-year return of 8.8%, reflecting strong real estate growth and stability.
The Dallas-Fort Worth area ranks #1 in the 2025 Emerging Trends in Real Estate report by PwC and the Urban Land Institute, based on insights from over 2,000 experts.
Consistently in the top 10 for six years, this region is a prime market for real estate investment.
These statistics and expert endorsements highlight Texas's booming real estate in 2025, attracting investors with its proven profitability and market strength.
Source: PricewaterhouseCoopers and the Urban Land Institute
- Where are the 12 most profitable places to invest in Texas real estate?
We pulled out the latest data to make this infographic. As you can see, it shows how real estate values have changed over the past 10 years in Texas vs other major places in Texas. Here, the percentage increase or decrease in market value will help you see long-term trends.
11) Texas's youthful median age of 35.9 years is a strength for its real estate market
Texas's median age of 35.9 years is younger than the national median of 39.2 years, driving its thriving real estate market.
A youthful population supports a strong workforce and community, boosting housing demand.
Only 13.8% of Texans are 65 or older, compared to 17.7% nationally, highlighting the state's growth potential.
This demographic fuels economic growth and real estate demand, making Texas a hotspot for young professionals and families.
The state's youthful energy signals a promising future in real estate.
Sources: United States Census Bureau, Business Insider
- Why will Texas become a buyer’s market full of opportunities in 2025?
12) Texas's massive size and strategic location are remarkable
Texas, covering 268,596 square miles, is the second-largest U.S. state, surpassing any European country and dwarfing California, which fits into Texas 1.6 times.
This vast land, comprising about 7% of the U.S., drives residential and commercial growth, meeting a booming market's needs.
The distance from Houston to Dallas, akin to Paris to London, highlights connectivity potential, boosting real estate expansion.
In 2025, Texas's abundant land supports a surge in development, attracting businesses and residents, solidifying its real estate market as a powerhouse.
Sources: United States Census Bureau, Texas Proud, Wikipedia
13) There is A LOT of Fortune 500 companies in Texas
Texas hosts a significant number of Fortune 500 companies, with Dallas-Fort Worth having 23 and Houston 24.
This corporate presence drives economic growth and increases housing demand statewide.
Beyond these cities, San Antonio features Valero Energy and USAA, while Irving recently added Caterpillar Inc.
This influx of major corporations fosters a thriving business environment, attracting global talent and investment, creating jobs, and stimulating local economies.
Strong industries like oil and gas, software publishing, and construction further enhance growth, drawing new residents and businesses.
By 2025, Texas real estate is booming, with rising housing demand not just in major cities but statewide, making it a prime location for real estate development and investment.
Sources: New York Post, PricewaterhouseCoopers and the Urban Land Institute, The State of Texas, WFAA, Wikipedia
- The strongest forecasts for Texas' real estate market in 2025
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So, why is Texas real estate booming in 2025?
Texas's real estate market is on fire in 2025, and it's not by accident. The state has seen a 10% increase in home sales and a 17.6% surge in homes for sale, driven by a combination of factors that make it a prime location for buyers and investors alike.
First, Texas's population is booming, with nearly 500,000 new residents in just one year, thanks to its affordable housing and job opportunities. This influx is pushing up housing demand and property values. Plus, Texas's employment growth of 3.1% outpaces the national average, further fueling the real estate market.
Moreover, Texas's cost of living is 7% below the national average, and housing costs are 17% lower, making it an attractive option for many. The state's youthful median age of 35.9 years supports a strong workforce and community, boosting housing demand.
Additionally, Texas's strategic location and massive size, along with a significant number of Fortune 500 companies, drive economic growth and housing demand statewide. With all these factors combined, Texas's real estate market is thriving, offering abundant opportunities for investment and development.