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.
Thinking of buying in Texas? Get our financial spreadsheet tailored to this specific market.
Wondering if Texas is the right place for real estate investment in 2025? All signs point to yes.
From a growing population to favorable economic conditions, the Lone Star State continues to attract investors from across the globe.
Let’s dive into the data that makes Texas a prime investment opportunity this year.
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) Fannie Mae actually predicts Texas home prices will climb 3.1% in 2025
Home prices in Texas are expected to rise modestly in 2025, with Fannie Mae forecasting a 3.1% increase and CoreLogic predicting a 2.3% rise from August 2024 to August 2025.
This growth reflects a stable real estate market.
Texas added over 302,000 jobs from August 2023 to August 2024, boosting homebuyer purchasing power and demand.
The state's population is projected to grow by 6.4% from 2025 to 2030, further increasing housing demand.
With over 306,000 new homes needed, Texas remains an attractive real estate investment opportunity, offering potential for stable and lucrative returns.
Sources: Fannie Mae, CoreLogic
- The strongest forecasts for Texas' real estate market in 2025
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’s median home price is still below the national average (so it's an opportunity)
In 2024, Texas's median home price was $306,841, below the national average, attracting buyers and renters and sustaining real estate demand.
Texas's diverse economy, job opportunities, and vibrant culture enhance its appeal, driving housing needs and stabilizing property values.
Investing in Texas real estate in 2025 is wise due to its affordability and strong demand, offering potential appreciation and value retention for both homebuyers and rental property investors.
Sources: Texas Real Estate Research Center, Norada Real Estate Investments
- Why is 2025 an excellent time to buy property in Texas?
3) Dallas boasts a 5-year annualized return of 7.9% and ranks #1 for 2025 real estate trends
Dallas boasts impressive investment returns, with a 5-year annualized return of 7.9% and a 10-year return of 8.8%, reflecting a robust real estate market.
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, Dallas-Fort Worth is a reliable market for real estate investment.
These returns and rankings highlight Texas, especially Dallas-Fort Worth, as a prime location for real estate investment in 2025, offering stable growth opportunities.
Source: PricewaterhouseCoopers and the Urban Land Institute
- Where are the 12 most profitable places to invest in Texas real estate?
4) The Dallas-Fort Worth area host 23 Fortune 500 companies, which is a lot
In 2024, Texas experienced a major influx of corporations, with the Dallas-Fort Worth area hosting 23 Fortune 500 companies.
This has boosted economic growth and increased housing demand as employees and families relocate.
The corporate migration highlights Texas's business-friendly environment and robust infrastructure, fueling the real estate market.
As businesses expand, they create jobs and stimulate local economies, driving demand for residential and commercial properties.
Texas is a prime location for real estate investment in 2025, with ongoing economic growth and new residents supporting property appreciation and rental income opportunities.
The 2024 data underscores Texas's potential as a lucrative real estate market.
Sources: New York Post, PricewaterhouseCoopers and the Urban Land Institute, The State of Texas, WFAA, Wikipedia
Thinking of buying in Texas?
We have real estate spreadsheets fully tailored to this market. Get them now.
5) With population growth between 1.0% and 2.0% in 2024, Texas is fueling housing demand
Texas is experiencing notable population growth, with rates between 1.0% and 2.0% in 2024.
Dallas has seen a 6.1% increase since 2020, and Texas projects a 6.4% growth from 2025 to 2030.
The Dallas-Fort Worth area now exceeds 8 million residents.
This influx boosts housing demand, driving up property values and rental prices, especially in urban areas like Dallas.
The growing population stimulates the economy, attracting businesses and creating jobs, further enhancing the real estate market.
These factors make Texas a promising real estate investment opportunity in 2025, with potential for significant returns.
Sources: Texas Real Estate Research Center, PricewaterhouseCoopers and the Urban Land Institute
6) Building permits in Texas rose by 1.59%, reflecting optimism
In August 2024, Texas experienced a 1.59% increase in building permits from the previous month, indicating growing confidence in the real estate market.
This rise suggests more construction projects and reflects investor optimism about the state's economic growth.
The increase in permits signifies a commitment to expanding infrastructure and housing, crucial for meeting the needs of a growing population and supporting economic development.
As more people move to Texas for job opportunities and quality of life, demand for housing and commercial spaces is expected to rise.
This makes Texas a promising real estate investment opportunity in 2025, with potential for significant returns due to ongoing development and a steady influx of residents and businesses.
Source: Texas Real Estate Research Center
7) In 2024, Texas’s median home price edged up 0.2% to $306,841
In 2024, Texas's median home prices rose by 0.2% to $306,841, indicating a stable real estate market.
This stability minimizes risks and offers a foundation for future appreciation, making Texas attractive for investors.
The consistent price increase reflects a balanced market, suggesting healthy demand and supply dynamics.
This positions Texas as a promising real estate investment opportunity in 2025, with potential for long-term gains.
Sources: Texas Real Estate Research Center, Norada Real Estate Investments
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 cost of living is still 7% below the national average (it's attractive)
In 2024, Texas had a cost of living 7% below the national average, with housing costs 17% lower.
This affordability attracts individuals and businesses, boosting housing demand and potential property value appreciation, offering significant returns for investors.
The lower housing costs allow investors to purchase properties at better prices, enhancing returns through buying low and selling high or renting competitively.
Economic growth from new residents and businesses further strengthens the real estate market.
Overall, Texas's affordability and economic expansion make it a prime real estate investment location in 2025.
Source: RentCafe
9) Texas’s booming job market (+302,000 jobs) is driving its housing market upward
Texas is experiencing significant employment growth, with payroll employment rising by 1.1% to 2.7% in 2024.
The Dallas-Fort Worth area has seen an 11.2% employment increase since February 2020, ranking it as the fourth-fastest growing metro area in the U.S.
From August 2023 to August 2024, Texas added over 302,000 jobs, leading the nation.
This job growth boosts the housing market, attracting more residents and increasing housing demand, making Texas a prime real estate investment location.
The state's economic vitality and expanding job market offer promising returns for real estate investors in 2025.
Sources: Texas Real Estate Research Center, CoreLogic, TexasStandard
10) Texas’s GDP is on track to grow 2.0%-2.5%, which is a good performance
Texas's GDP is projected to grow between 2.0% and 2.5% in 2024, indicating a strong economy.
This growth suggests increased demand for housing, commercial spaces, and infrastructure, benefiting real estate investors.
Economic growth typically leads to job creation, population growth, and higher consumer spending, boosting the real estate market with appreciating property values and strong rental demand.
Texas is a prime location for real estate investment in 2025, offering potential for capital gains and steady rental income, supported by a robust economy.
Source: Texas Real Estate Research Center
11) Dallas saw occupancy rates jump 26% year-over-year
Dallas occupancy rates have increased by 26% year-over-year, indicating a strong demand for short-term rentals and a promising market for investors.
High occupancy ensures steady cash flow and property profitability.
In Austin, occupancy rates reach 58.54% during major events like SXSW, highlighting the impact of tourism and events on rental demand.
These trends make Texas, especially Austin and Dallas, attractive for real estate investment in 2025, offering high returns and a dynamic market for investors.
Sources: RedAwning, PricewaterhouseCoopers and the Urban Land Institute
Get our spreadsheets tailored to Texas!
Our tools cover everything: NOI, COC, Cap Rate, Gross Yield, Net Yield, LTV, ROI, and numerous other metrics and charts.
So, is Texas a good place to invest in real estate in 2025? Absolutely!
Texas is shaping up to be a fantastic real estate investment opportunity in 2025. The state's economic and demographic trends are highly favorable for investors.
First, consider the projected 3.1% increase in home prices as forecasted by Fannie Mae. This indicates a stable and appreciating market. Additionally, Texas's median home price of $306,841 remains below the national average, making it an attractive option for buyers and investors alike.
Moreover, the booming job market with over 302,000 jobs added from August 2023 to August 2024, and the presence of 23 Fortune 500 companies in the Dallas-Fort Worth area, further bolster the state's economic appeal. This job growth fuels housing demand, ensuring a steady market for real estate investments.
Texas's population growth and affordable cost of living—7% below the national average—also contribute to its attractiveness. These factors drive housing demand and potential property value appreciation, offering significant returns for investors.
Finally, the 1.59% rise in building permits reflects optimism and a commitment to expanding infrastructure, meeting the needs of a growing population. All these elements combined make Texas a prime location for real estate investment in 2025, promising stable growth and lucrative returns.