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Wondering what’s ahead for Texas' real estate market in 2025? With all the data at our fingertips, we're getting a clearer picture of some trends that could shape the housing landscape.
Let’s dive into what might be in store for 2025!
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) Dallas, ranked #1 for real estate investment in the U.S. in 2025, is a top pick for steady returns in 2025
Ranked as the #1 real estate market for investment and development, Dallas offers a resilient economy with key industries like technology, finance, and healthcare that keep it strong even in tough times.
Since February 2020, the area has seen impressive 11.2% employment growth, attracting more residents and boosting rental demand. The DFW area’s population is also booming, now over 8 million, fueling steady housing demand.
With a median property price of $676,473 and monthly rental income around $2,791, Dallas provides a solid investment entry point, yielding about 5.0% on rentals. While prices have risen, impacting yields slightly, strong demographic growth maintains a reliable renter base. Properties here don’t sit on the market long—just 22 days on average to pending—showing high demand. Home values are expected to dip slightly by -0.9% by October 2024 and -0.3% by mid-2025, but Dallas’s strong fundamentals keep it a solid bet.
With the fourth largest concentration of Fortune 500 companies and expanding suburban developments in Denton and Collin counties, Dallas offers growth potential and affordability for investors.
All in all, Dallas’s diverse economy, affordable prices, and strong population growth make it an excellent real estate market for 2025, offering resilience and steady returns.
Sources: Mashvisor, DallasNews, Nbcdfw, The Grove Frisco, Norada Real Estate
- Why Dallas claims the #1 spot in real estate for 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) Houston ranks #3 nationally for real estate prospects in 2025, with 57% renter-occupied households driving 8.3% rental yields
Houston’s real estate market is a prime investment hotspot for 2025, ranked #3 nationally for real estate prospects. With 57% of households renter-occupied, the city has a strong rental demand fueled by a robust job market in energy, healthcare, and technology sectors.
This combination not only attracts new residents but also sustains high occupancy rates, driving rental yields to around 8.3% on an average purchase price of $496,930 and rental income of $3,455 per month.
Houston’s population growth outpaces the national average by a striking 190.5%, which further supports this rental demand and boosts appreciation potential.
Home prices are projected to grow at 2-3% annually through 2025, and by 2025, the median price is expected to reach between $346,800 and $350,200, offering investors steady returns in an appreciating market. Historically, properties in Houston have appreciated at an impressive 8.24% annually over the past eight years, making the city not just a residential hub but a stronghold for real estate investment.
Houston’s relatively low property prices, especially when compared to other major cities, add significant appeal for investors looking for high returns in a thriving, cost-effective market.
Sources: Global Property Guide, America Mortgages, Real Wealth
- Here is why real estate is booming in Texas in 2025
3) Arlington’s real estate market, with a 7.4% rental yield, a 4% annual appreciation rate, and a 2.3% unemployment rate, is a prime market for 2025
With an annual appreciation rate of 4% and a year-over-year price growth of 5%, Arlington’s real estate market offers steady returns for investors.
The city’s median home price of $750,000 and an average purchase price of $493,700 make it an appealing choice, particularly considering its position between Dallas and Fort Worth, which enhances its appeal to commuters and professionals.
Rental yields are competitive, with an estimated rental yield of 7.4% based on an average rental income of $3,035 per month. The market shows high occupancy rates for traditional rentals due to strong demand from professionals and government employees, while Airbnb rentals see an average occupancy of 65% with higher yields compared to traditional leasing. Property values are projected to increase modestly, with prices expected to climb from $293,146 to approximately $311,040 by December 2025, making Arlington a solid choice for both long-term appreciation and rental income.
The local market stability is underscored by the fact that 75% of Arlington homebuyers are searching within the metropolitan area, with significant inbound migration from high-cost areas like Los Angeles, San Francisco, and New York. This positive migration trend reflects Arlington’s appeal as a more affordable alternative with high quality of life. Properties in Arlington are also in high demand, typically receiving 3 offers on average, and hot properties can sell within 19-20 days, indicating a competitive market.
Arlington’s diverse rental income potential further strengthens its appeal. Traditional rentals range from $1,913 per month for studios up to $4,307 for four-bedroom homes, while Airbnb rental potential is even higher, with studios earning $2,453 and four-bedroom homes earning up to $7,900 per month. The low unemployment rate of 2.3% combined with Arlington’s thriving job opportunities in entertainment and sports supports a stable and profitable real estate market, making it a top choice for investors seeking steady returns in 2025 and beyond.
Sources: WalletInvestor, America Mortgages, Mashvisor, Redfin
4) San Antonio’s real estate market, with a 6.9% rental yield and 92% occupancy rate, is a promising one for 2025
San Antonio is shaping up to be a smart real estate pick for 2025, offering a mix of affordability and solid rental income potential.
Right now, you can get in at a good entry point, with the average purchase price sitting at $514,975 and a recent 1-year value drop of 3.5%. For investors, that’s a great opportunity to enter the market at a lower cost. Rental income here is also attractive, with an average monthly rental of $2,951 and a yield around 6.9%—not bad at all, especially in a steady market like San Antonio.
San Antonio’s economy is diverse and growing fast, backed by industries like tech, healthcare, and the military. The job market has been expanding with 2.4% job growth and 23,800 new jobs added, giving renters plenty of reasons to stick around. The unemployment rate is 4.0%, which supports the rental market by attracting a stable, employed renter base. And while the current occupancy rate is 91.4%, it’s expected to adjust to a manageable vacancy rate of 4.2% by 2025, balancing supply and demand just right.
Another strong point? Most San Antonio buyers—around 72%—are staying in the metropolitan area, signaling a stable local demand. That’s great for long-term investments. Plus, San Antonio’s tourism, military, and healthcare sectors keep people coming, so you’re looking at a steady flow of renters.
Altogether, with a growing economy, strong rental demand, and prices that make sense, San Antonio stands out as a promising real estate market for 2025.
Sources: YardiMatrix, America Mortgages, BiggerPockets, Redfin, Zillow
- Here is why San Antonio housing prices might fall in 2025
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5) Irving is a top 2025 investment spot with $430,000 median home prices, 4.9% annual growth, and 128.85% appreciation over a decade
Irving, Texas, is a promising real estate market for 2025, driven by strong appreciation, demand, and its prime location within the Dallas-Fort Worth (DFW) area.
Over the past decade, Irving’s property values have appreciated by 128.85%, with an annual growth rate of 8.63%, placing it among the top 20% nationally.
As of end of 2024, Irving’s median home price is $430,000, showing a 4.9% increase year-over-year. Homes typically receive three offers and sell within 28 days, reflecting steady demand. Located in the rapidly growing DFW area—projected to be the hottest real estate market in 2025 (as seen before)—Irving benefits from the region’s strong economy, which boasts the fourth-fastest employment growth in the U.S. and a population nearing 8 million.
The DFW area faces a limited supply of affordable housing, which supports further property appreciation. Irving’s Las Colinas area is especially in demand, with prices between $414,871 and $720,000, and a strong corporate presence fueling demand.
With rising population, job growth, and sustained housing needs, Irving offers a robust investment opportunity in 2025 for those looking to benefit from steady value growth in Texas’s vibrant market.
Sources: Redfin, LizJournals, CBRE, KNUE
6) Garland is a prime 2025 investment choice with a median home price of $319,000, 152.86% appreciation over a decade, and 9.72% annual growth
Yes, Garland, Texas, is a strong real estate pick for 2025, with impressive appreciation, balanced market conditions, and an ideal location within the Dallas-Fort Worth (DFW) area.
Over the past decade, Garland’s property values have grown by 152.86%, averaging a 9.72% annual appreciation, placing it in the top 10% nationally.
As of end of 2024, the median home sale price in Garland is $319,000, and homes typically spend 37 days on the market. While there’s been a slight 0.31% dip from last year, the market remains competitive, with homes selling at 96.97% of the list price. Inventory has expanded by 28.2% year-over-year, but homes still move quickly, with median days on market at 14.43 days, showing strong buyer demand.
Garland’s proximity to Dallas, a major economic center, boosts its appeal. The DFW area, projected to lead the U.S. real estate market in 2025 (as repeated a couple of times in this article), has seen 11.2% employment growth since 2020, driving both population and housing demand. Garland’s affordability also stands out, with price points below many other DFW areas, making it attractive for a variety of buyers.
Sources: NeighborhoodScout, Orchard, Redfin, Texas Standard, BizJournal
7) El Paso will be trending in 2025, with a median home price of $255,000, 3.5% annual appreciation, and a robust rental market with a low 5% vacancy rate
With a current median home price of $255,000, El Paso offers accessible entry points well below the national average, and this price has seen a healthy 3.5% increase year-over-year. The median price per square foot has also risen to $150, up 1.4% from the previous year, with projections indicating a consistent 3-4% annual price growth through 2025, making El Paso ideal for investors focused on stable appreciation.
El Paso’s market dynamics show a competitive environment where properties receive multiple offers, with homes typically selling within 37 days and hot listings moving at list price in as few as 12 days. As of November 2024, new listings have risen by 15.7%, bringing 1,010 homes to the market, while active inventory stands at 2,558 listings, up 4.0%—a balance that maintains steady demand without oversaturation.
The rental market in El Paso is robust, with average rents around $1,150 per month and a low vacancy rate of 5%, driven by a younger demographic and high rental demand. Additionally, 67% of buyers search within the El Paso metropolitan area, indicating strong local interest. The city’s affordability and strong job growth also make it attractive, with employment projected to rise from 339,800 in 2023 to 342,900 in 2024, reflecting economic expansion.
With a cost of living 9% below the national average, El Paso is among the most affordable U.S. cities, enhancing its appeal for new residents and renters alike. Market stability is underscored by the fact that homes are selling close to asking prices, and with long-term forecasts showing a 6.551% price increase over the next decade, El Paso offers steady growth rather than volatile spikes.
Sources: Redfin, TheLuxuryPlaybook, El Paso TX, Rocket Homes, New York Post
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) Lubbock has a projected 17.42% price rise over five years, and a strong rental demand driven by Texas Tech University
Lubbock is looking like a solid choice for real estate investment in 2025, thanks to its affordability and steady growth.
The median home price in September 2024 was $245,000, up 6.1% from the previous year, and with 1,786 active listings—a 26.8% increase—the market is becoming more balanced. Inventory has also grown to 4.4 months, providing buyers with more options and signaling a shift toward a stable market.
Price forecasts are encouraging, with values expected to rise from $176,120 to $182,810 in the next year and by 17.42% over five years to around $206,805. Lubbock’s affordability stands out, with most properties in the $100,000-$300,000 range and a price per square foot of $144, making it a cost-effective investment compared to other Texas cities. Plus, the rental market remains strong, fueled by Texas Tech University’s presence, ensuring demand for rentals.
The market dynamics are shifting, with a 40.8% increase in active listings and properties selling within 38 days on average. Although price reductions and some foreclosures indicate slight cooling, Lubbock still presents stability and opportunity.
With predicted mortgage rate drops and a steady transaction volume of 5,628 residential properties sold over the past year, Lubbock offers a balanced, growth-oriented investment option in 2025, perfect for those looking for long-term returns.
Sources: Lubbock Realtors, Wallet Investor, Lubbock Online, Home Buying Institute
9) Frisco is a top 2025 investment with a $692,983 average home price, 3.7% annual growth, and strong demand in DFW
Frisco, Texas, is a standout real estate investment opportunity for 2025, driven by strong growth, demand, and a strategic position within the thriving Dallas-Fort Worth (DFW) area.
As of end of 2024, Frisco’s average home value is $692,983, reflecting a steady 3.7% year-over-year increase. Homes in Frisco sell quickly, with an average pending time of just 13 days, highlighting the strong demand and competitive nature of the market. Frisco’s growing population and expanding economy, supported by the influx of major corporations, continue to drive demand for housing, further solidifying its appeal.
Inventory levels remain tight, even with a slight increase in homes for sale compared to previous years, keeping the supply limited and supporting ongoing appreciation. Experts forecast that home values in Frisco will continue to rise by a moderate 2-4% by the end of 2024, as demand stays strong.
Frisco is experiencing significant population growth, projected to increase by 17.1% by 2025, with many buyers relocating from major cities like Los Angeles and New York. The area’s strong job market, fueled by the fourth-largest concentration of Fortune 500 companies in the U.S., enhances its attractiveness for both residents and investors.
At the end of the dat, with a solid economic base, high-ranking schools, and relative affordability compared to coastal markets, Frisco offers a stable, growth-oriented real estate market.
Sources: Youtube, Noradare Real Estate, Redfin, Nbcdfw
10) McKinney is a solid 2025 investment with a $500,000 median home price, 54.8% inventory growth, and forecasted 27.5% home value increase over the next decade
McKinney, Texas, presents a solid real estate investment opportunity for 2025, backed by strong market fundamentals, steady growth, and a prime location within the Dallas-Fort Worth (DFW) area.
As of end of 2024, the median home price in McKinney is $500,000, with homes selling within 43 days on average, reflecting moderate market competition. The sale-to-list price ratio of 97.5% indicates that properties are generally selling close to their asking prices.
Inventory in McKinney has expanded by 54.8% year-over-year to 1,446 listings, and new listings have increased by 17% in the last 30 days alone, suggesting a shift towards a more balanced market with 3.35 months of supply. This growing inventory provides more options for buyers while keeping demand steady, which is beneficial for long-term stability.
McKinney benefits from the DFW area's economic strength, ranked as the #1 real estate market to watch in 2025. The area has seen an influx of migration, especially from cities like Los Angeles and New York, driving demand further. Forecasts project a 27.529% increase in home values over the next decade, and rental demand remains strong, with annual rent growth expected at 2.9%.
Sources: Redfin, Home Buying Institute, DMagazine, Nitin Gupta DFW, Orchard
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) Plano, is a smart real estate choice for 2025, with a 4.9% rental yield, driven by high-income tenants, top-rated schools, and strong job growth
Plano is shaping up as a top real estate pick for 2025, combining stability with growth potential.
With a median property price of $579,827 and a monthly rental income around $2,347, it offers an estimated rental yield of 4.9%, ideal for investors targeting quality, long-term tenants. Plano’s appeal lies in its high-income tenant base, drawn by top-rated schools and a strong tech presence, making it a great spot for reliable rental income.
Being part of the Dallas-Fort Worth metroplex—ranked (as we saw before) the #1 real estate market for 2025—Plano benefits from the area’s rapid growth. With one of the fastest employment gains nationally and a family-friendly reputation, demand remains strong. Property values in Plano are projected to keep rising, with steady monthly gains expected through 2025, pointing to solid long-term returns.
Though competition and limited inventory in DFW might push prices up, Plano’s proximity to schools, jobs, and amenities makes it an attractive, secure investment choice. For investors looking for a market with reliable demand and growth potential, Plano stands out as a smart option for 2025.
Sources: Zillow, WalletInvestor, Mashvisor
12) Farmers Branch, boosted by Dallas proximity and strong regional job growth, may be a top 2025 investment spot
Farmers Branch, Texas, is emerging as a compelling real estate investment opportunity in 2025, driven by its strategic location and robust market dynamics.
With a median property price of $593,409 and an estimated monthly rental income of $2,391, investors can expect a rental yield around 4.8%. Its proximity to Dallas makes it a popular choice for families and young professionals looking for suburban living with quick access to city amenities.
The market here has shown strong growth. As of end of 2024, the median home price in Farmers Branch was $439,000, up by 6% from the previous year. This aligns well with the Dallas-Fort Worth metroplex’s overall strength—ranked as the #1 real estate market for investment in 2025. The region’s job growth, up 11.2% since February 2020, and its growing population, now over 8 million residents, drive up housing demand and support steady returns.
Farmers Branch’s rental market is also strong, backed by a median household income of $73,695, which reflects the area’s stable renter base. While we don’t have exact projections for gross rental yields in 2025, the Texas rental market has been growing, with Dallas seeing a 5.8% median rent increase over the past year. Assuming Farmers Branch follows a similar trend, rental income potential is promising.
Sources: Zillow, Realtor, Mashvisor
- Yes, Texas is a good place to invest in real estate in 2025
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So, where are the top real estate spots in Texas for 2025?
In 2025, Texas is shaping up to be a hotbed for real estate investment, with several cities standing out as prime opportunities. Dallas, Houston, and Arlington are leading the charge, each offering unique advantages for investors.
Dallas is ranked as the #1 real estate market for investment and development in the U.S. for 2025. Its resilient economy, driven by key industries like technology and finance, supports a strong housing demand. With a median property price of $676,473 and a monthly rental income around $2,791, Dallas offers a solid investment with a rental yield of about 5.0%. The city's rapid population growth and high demand ensure properties don't stay on the market long, averaging just 22 days to pending.
Houston, ranked #3 nationally for real estate prospects, boasts a strong rental market with 57% of households renter-occupied. The city's robust job market in energy and healthcare sectors drives rental yields to around 8.3%. With an average purchase price of $496,930 and rental income of $3,455 per month, Houston offers high returns in a thriving market.
Arlington is another top contender, with a 7.4% rental yield and a 4% annual appreciation rate. Its strategic location between Dallas and Fort Worth makes it appealing to commuters, and its median home price of $750,000 offers a competitive entry point for investors. The city's low 2.3% unemployment rate and strong job opportunities support a stable real estate market.
Overall, these cities offer a mix of strong economic fundamentals, population growth, and rental demand, making them top picks for real estate investment in Texas in 2025.