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2025 is shaping up to be an ideal year for buying property in Texas, with market trends favoring buyers.
Read this article to uncover 10 key stats that highlight why this is the perfect time to invest. Ready to take action? Use our Texas real estate investment spreadsheet to plan your next move.
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) Austin's luxury home prices dropped 6.9%, making 2025 the perfect time to snag a high-end property
Austin's luxury home market saw a 6.9% drop in median prices in early 2024, making high-end properties more accessible.
This price decline benefits potential buyers and investors by offering entry at lower costs with potential long-term gains.
Factors like market demand changes and increased supply contribute to this trend, creating a favorable buying environment.
As prices may not stay low, 2025 is an ideal time to invest in Austin's luxury real estate, presenting a rare opportunity for financial benefits.
Source: Barron's
- Here is why real estate is booming in Texas 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 mortgage rates are slightly lower (6-6.5%), making 2025 a prime time to invest in real estate
In 2024, mortgage rates were around 6-6.5%, slightly lower than the previous year, enhancing affordability for Texas homebuyers in 2025.
Even a small rate reduction can save thousands over a 30-year loan, making previously unaffordable properties accessible.
With Texas's strong economy and rising population, property values are likely to increase, making 2025 an opportune time to invest in Texas real estate.
Source: Market Watch
3) Texas's record $148 billion infrastructure investment is set to boost property values,
The Texas Department of Transportation (TxDOT) has announced a record $148 billion investment in transportation infrastructure, with over $104 billion for a 10-year plan to improve safety, reduce congestion, and enhance connectivity.
This investment aims to transform the state's transportation, making it more accessible and efficient.
By addressing congestion and improving safety, daily commutes will become smoother, enhancing residents' quality of life.
Improved connectivity will make previously hard-to-reach areas accessible, fostering development and economic growth.
As infrastructure improves, property values are expected to rise due to increased demand and reduced travel times, making 2025 an opportune time to invest in Texas property.
Source: Texas Departement of trabsportation
4) Dallas and Austin's booming population and Fortune 500 influx make Texas real estate a hot investment for 2025
Texas cities like Dallas and Austin are experiencing significant population growth, attracting Fortune 500 companies and new corporate projects.
This trend indicates a sustained demand for housing, driven by job opportunities and a vibrant lifestyle.
The economic vitality of these cities, with major corporations fostering job stability and growth, fuels the housing market.
As Dallas and Austin expand, the demand for homes remains high, making real estate a valuable asset.
By 2025, investing in Texas property is promising, with potential for property value appreciation and strong returns.
Source: New York Post
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.
5) Texas employment surged by 3.1%, outpacing the national average
Texas employment grew by 3.1%, surpassing the national average, with notable gains in manufacturing, financial activities, and government sectors.
This growth indicates a thriving economy, fostering economic stability and a strong housing market as more people gain financial means to invest in property.
These sectors offer immediate jobs and long-term career prospects, attracting more residents and increasing housing demand, which boosts property values.
Consequently, 2025 is an ideal time to buy property in Texas, as the state's employment growth underpins a robust economic foundation, making real estate a strategic investment.
Source: Federal Reserve Bank of Dallas
6) Texas's $6 billion investment in Highway 59 upgrades will boost property values
Texas is investing nearly $6 billion over the next decade to upgrade U.S. Highway 59, focusing on flood mitigation and infrastructure improvements.
This investment aims to enhance safety and resilience in flood-prone areas, improving residents' quality of life and attracting property buyers.
The upgrades are expected to reduce flooding risks significantly, protecting communities and increasing property desirability.
As improvements progress, property values are likely to rise, making 2025 a promising time for real estate investment in Texas.
Source: AP News
7) Texas's median home price rose 1.4%, offering a stable and promising market
In October 2024, Texas's median home price was $345,500, a 1.4% increase from the previous year, indicating a stable real estate market.
This steady growth contrasts with rapid surges in other states, offering a balanced environment for buyers and sellers.
The 1.4% rise suggests sustainable market growth, reducing risks of overpaying or sudden value drops.
This stability benefits buyers, ensuring their investment appreciates without fear of a market crash.
With strong housing demand, 2025 is an excellent time to buy in Texas, as the market conditions favor investment appreciation.
Source: Redfin
- Why will Texas become a buyer’s market full of opportunities in 2025?
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 A&M's $200 million investment near NASA's Johnson Space Center is set to boost Houston's housing demand
Texas A&M University is investing $200 million in a research and training facility near NASA’s Johnson Space Center in Houston, boosting the local economy and housing demand.
This project signals confidence in the area's growth, attracting professionals, researchers, and students who will need housing, thus driving property values up.
With these developments, 2025 is an ideal time to invest in Houston real estate, benefiting from immediate demand and long-term property appreciation.
Source: Houston Chronicle
9) Texas's 13.8% rise in new listings is boosting housing supply and gives you room for negotiation
As of August 2024, Texas experienced a 13.8% rise in new listings, boosting housing supply and indicating a more balanced market.
This benefits homebuyers with more options and potentially competitive pricing, as sellers may negotiate more in a crowded market.
The shift suggests a move from a seller's to a neutral market, offering fairer prices and terms, reducing buying pressure, and allowing informed decisions.
These conditions make 2025 a promising time to buy property in Texas, with increased supply offering more choices and better deals, creating favorable purchasing conditions.
Sources: Norada Real Estate Investments, Texas Real Estate Research Center
10) Goldman Sachs' $500 million facility in Dallas highlights Texas's booming infrastructure investments
Texas is experiencing significant infrastructure investments, highlighted by Goldman Sachs' $500 million facility in Dallas.
These projects signal confidence in the region's economic future and include transportation and essential service improvements, enhancing quality of life and boosting property values.
With ongoing developments likely to drive up real estate prices, 2025 is an opportune time to invest in Texas property and benefit from appreciation linked to infrastructure growth.
Source: New York Post
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So, is 2025 the perfect time to buy property in Texas? Absolutely, it is!
2025 is shaping up to be an ideal year for buying property in Texas, with several compelling factors making it a prime opportunity for investors.
First, Austin's luxury home prices have dropped by 6.9%, making high-end properties more accessible and offering potential long-term gains. Additionally, Texas mortgage rates are slightly lower, around 6-6.5%, enhancing affordability and saving buyers thousands over a 30-year loan.
Moreover, Texas's record $148 billion infrastructure investment is set to boost property values, while the booming population and Fortune 500 influx in cities like Dallas and Austin ensure sustained housing demand. With a 3.1% employment surge outpacing the national average, the state's economy is thriving, further supporting a strong housing market.
Finally, Texas's median home price rose by 1.4%, indicating a stable and promising market. With a 13.8% rise in new listings, buyers have more options and room for negotiation. All these factors combined make 2025 an opportune time to invest in Texas real estate, promising appreciation and strong returns.