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Texas is shifting into a buyer’s market in 2025, creating plenty of opportunities for smart investors.
Read this article to explore 6 key stats driving this change. Thinking of investing? Don’t miss our Texas real estate spreadsheet to evaluate profitability and maximize your returns.
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's 6.5-month inventory in 2024 signals a buyer's market, giving buyers more options and leverage
In 2024, Texas reported a Months of Inventory (MOI) of 6.5 months, indicating a shift towards a buyer's market.
MOI measures how long it would take to sell all current homes if no new listings appear.
An MOI above six months suggests more homes than buyers, giving buyers more options and leverage.
This trend is expected to continue in 2025, favoring buyers with more negotiating power and less competition.
The data supports the notion that the Texas housing market is leaning towards a buyer's market, offering opportunities for better deals and a balanced playing field.
Sources: Home Buying Institute, Austin Board of Realtors
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2) Houston's 44.9% surge in new listings is giving buyers more options and competitive pricing
In August 2024, Houston experienced a 44.9% increase in new listings, totaling 14,098, boosting housing inventory.
This shift indicates a move towards a buyer's market, where supply exceeds demand, benefiting buyers with more options and competitive pricing.
As inventory rises, sellers may lower prices or offer incentives.
Looking to 2025, this trend suggests continued buyer advantages, with more homeowners selling due to economic or personal factors, offering buyers more choices and better deals.
Source: Texas Real Estate Research Center
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3) Texas's housing market is becoming more buyer-friendly with zoning reforms and increased supply
In 2025, Texas's housing market is shifting due to zoning law reforms, notably in Austin, allowing more accessory dwelling units (ADUs).
This increase in housing supply creates a more buyer-friendly market with more affordable options.
The expanded supply reduces price pressure, giving buyers more choices and negotiating power.
Overall, these changes indicate a shift towards a buyer's market, offering better opportunities for homebuyers in Texas.
Source: Market Watch
4) Texas's housing supply is booming, giving buyers more options and bargaining power in 2025
In 2025, Texas sees a significant increase in housing supply due to urban development, notably in the Dallas-Fort Worth area with projects like the Texas Instruments plant in Sherman.
This growth offers buyers more options, allowing them to be selective and negotiate better deals, contrasting with previous seller's markets.
The trend towards a buyer's market is expected to continue as more projects are completed.
Source: Texas Standard
5) Active listings in Texas jumped 16.2%, giving buyers more choices and negotiating power
Active listings in Texas rose by 16.2% in October 2024 compared to the previous year, indicating a growing inventory.
This surplus gives buyers more choices and negotiating power, leading to price reductions and incentives from sellers.
As a result, the Texas housing market in 2025 is shifting towards a buyer's market, contrasting with a seller's market where limited inventory increases competition and prices.
This trend is expected to continue, making it an opportune time for homebuyers in Texas.
Source: Redfin
6) Texas homes now linger on the market for 65 days, giving buyers more power and better deals
In 2024, Texas homes' median days on market increased to 65 from 57 in 2023, indicating a shift towards a buyer's market.
This suggests buyers have more negotiation power as sellers may lower prices or offer concessions.
The extended listing durations reflect a market where supply exceeds demand, giving buyers more options and time.
Looking to 2025, this trend is expected to continue, benefiting buyers with better deals and lower prices.
Source: Texas Realtors
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So, is Texas a buyer's market in 2025? Absolutely, it is!
Texas is set to be a buyer's market in 2025, offering a prime opportunity for homebuyers.
Several factors contribute to this shift. First, the Months of Inventory (MOI) in 2024 was 6.5 months, indicating more homes than buyers, which gives buyers more options and leverage. This trend is expected to continue into 2025, favoring buyers with increased negotiating power and less competition.
Additionally, Houston's 44.9% surge in new listings in August 2024 and a 16.2% increase in active listings across Texas in October 2024 further boost inventory, providing buyers with more choices and competitive pricing. The increase in housing supply, driven by urban development and zoning reforms, particularly in Austin, also contributes to a more buyer-friendly market.
Moreover, Texas homes now linger on the market for 65 days, up from 57 days in 2023, reflecting a market where supply exceeds demand. This gives buyers more time and power to negotiate better deals. All these factors combined make 2025 an opportune time for homebuyers in Texas.