Texas continues to outperform the rest of the country in housing activity and population growth. Holding strong in 2024, the state accounted for 15% of all housing permits nationwide.
With 500,000 new residents expected in 2025, real estate markets across Texas are shifting rapidly.
As market activity accelerates, so does the risk of fraud; homeowners and investors should stay vigilant against common scams when engaging in cash transactions. Learn how to spot and avoid cash-for-house scams at CashIsKing.
Local price trends, job-driven migration, and varying affordability levels are reconfiguring real estate opportunities. While the statewide median home price remained steady at $340,000, local markets are moving at very different speeds.
Now, let us talk about the top cities in Texas that are about to experience a vast housing market growth this year.
1. Dallas–Fort Worth–Arlington (DFW)
Home prices in the DFW metro rose 9.2% year-over-year, with sales volume growing 7.6%. Suburban communities like Frisco, McKinney, and Plano are leading the charge, with new construction aimed at accommodating a rising number of families relocating for jobs and lifestyle flexibility.
Fort Worth’s Alliance Corridor and Arlington are experiencing momentum in mixed-use development, attracting both residents and businesses. Logistics hubs operated by FedEx, Amazon, and other industry giants are expanding and fueling economic growth.
The region’s employment strength across tech, healthcare, and distribution ensures long-term real estate demand. In-migration trends suggest DFW will remain a top target for developers and buyers in 2025.
Key Stats:
- YoY Home Price Growth: +9.2%
- YoY Sales Volume Growth: +7.6%
- Key Areas: Frisco, McKinney, Plano, Alliance Corridor
- Industry Drivers: Tech, logistics, healthcare
2. Austin–Round Rock
Austin and its surrounding communities posted a 10.2% increase in home prices and a 14.5% rise in sales volume. Despite national headlines about price corrections, the region has maintained its draw for tech professionals and startups.
East Austin, Cedar Park, Leander, and Round Rock continue to attract younger populations with strong incomes and a need for rental and purchase options. High rental demand driven by university students, digital workers, and business relocations sustains upward momentum.
Infrastructure improvements and expanded commuter access are enabling further suburban growth. Austin’s identity as a major tech hub remains intact, keeping real estate values buoyant.
Key Stats:
- YoY Home Price Growth: +10.2%
- YoY Sales Volume Growth: +14.5%
- Key Areas: East Austin, Round Rock, Leander, Cedar Park
- Industry Drivers: Tech, education, digital economy
3. San Antonio–New Braunfels
Offering relative affordability compared to Austin, San Antonio is benefiting from population spillover. Home prices rose 9.1%, with sales activity increasing 10.9%.
Neighborhoods like Stone Oak, Alamo Ranch, and New Braunfels are seeing a wave of new homes and rental communities.
Military presence via Randolph Air Force Base and a booming healthcare sector are reinforcing local stability. Tourism-related employment also provides a buffer during economic shifts.
San Antonio’s balanced market—neither overbuilt nor overpriced—makes it appealing to first-time buyers and investors seeking long-term value.
Key Stats:
- YoY Home Price Growth: +9.1%
- YoY Sales Volume Growth: +10.9%
- Key Areas: Stone Oak, Alamo Ranch, New Braunfels
- Industry Drivers: Military, healthcare, tourism
4. McAllen–Edinburg–Mission
In South Texas, the McAllen metro saw a 7.0% rise in home prices and a striking 19.8% jump in sales volume. Developments in areas like Sharyland, Edinburg (including the master-planned Tres Lagos), and Pharr are drawing first-time buyers priced out of larger metros.
UTRGV’s continued expansion and increased cross-border commerce provide consistent rental demand. Housing remains affordable, giving the region an edge with investors seeking lower entry points.
Key Stats:
- YoY Home Price Growth: +7.0%
- YoY Sales Volume Growth: +19.8%
- Key Areas: Edinburg, Sharyland, Pharr
- Industry Drivers: Education, border commerce, healthcare
5. Sherman
Located in North Texas, Sherman is emerging as a housing market to watch. A $30+ billion investment by Texas Instruments into semiconductor manufacturing has jump-started infrastructure, jobs, and housing.
Construction crews are building rapidly to support the workforce demand. Incomes are rising, and land prices remain relatively affordable compared to Dallas or Austin suburbs.
Sherman’s growth trajectory reflects an industrial-led real estate cycle rarely seen in recent decades. Few cities are matching Sherman’s velocity in both development and population gain.
Key Stats:
- Primary Catalyst: $30B+ Texas Instruments chip facility
- Key Growth Indicators: Infrastructure expansion, job creation, population growth
- Real Estate Advantage: Land affordability, fast construction timelines
Honorable Mentions
Now let us talk about some honorable mentions.
El Paso
View this post on Instagram
Home prices in El Paso grew by 8.4% year-over-year, driven by steady rental demand and a strong military presence.
Fort Bliss continues to stabilize the economy and attract both renters and homeowners alike.
Real estate activity remains consistent, avoiding the extreme highs and lows seen in larger metros. Investors looking for slow-and-steady growth and a resilient rental base find El Paso a viable option.
Key Stats:
- YoY Home Price Growth: +8.4%
- Key Driver: Fort Bliss military installation
- Market Strength: Rental stability, low volatility
Waco
Fueled by Baylor University and the cultural influence of Magnolia Market, Waco’s real estate market is gaining speed.
Infill development and new construction are expanding the housing stock near downtown and surrounding neighborhoods.
The city is becoming more attractive to younger buyers priced out of Austin, drawn by the combination of academic presence and retail-led revitalization.
Local officials are supporting this expansion with pro-growth policies.
Key Drivers:
- Baylor University, tourism, small-business scene
- Downtown revitalization and suburban development
Waxahachie, Weatherford, Venus
Located near DFW, these smaller cities are gaining interest from families and professionals seeking quieter communities with easy access to metro jobs.
Their relative affordability and rural setting offer a quality-of-life alternative to more congested suburbs.
New schools, shopping centers, and medical facilities are emerging to accommodate the population influx.
Real estate values are appreciating steadily without the pricing pressure seen in Plano or Frisco.
Key Features:
- Accessible commutes to DFW
- Small-town setting with new infrastructure
Huntsville
Huntsville, located near Houston, is beginning to benefit from infrastructure improvements and residential construction.
Home prices remain attractive for both investors and entry-level buyers.
State institutions and correctional facilities provide employment stability.
Key Drivers:
- Infrastructure expansion, affordable homes
- Workforce stability tied to public institutions
Temple–Killeen
Home to Fort Hood, one of the largest military installations in the U.S., this region continues to benefit from consistent demand for housing.
Median home prices remain within reach of most working families.
Healthcare expansion is also boosting local employment, with new hospitals and clinics driving demand for both rentals and homeownership.
Real estate professionals are eyeing Temple–Killeen for its blend of affordability and upward mobility.
Key Drivers:
- Fort Hood military base
- Healthcare industry expansion
Summary
Texas real estate in 2025 presents a strong opportunity for both homebuyers and investors. With job expansion, lower interest rates, and population gains, momentum continues to build across the state.
While metros like Austin and Dallas–Fort Worth lead in volume and visibility, secondary markets such as McAllen and Sherman are drawing attention for their growth rates and investment potential.
Buyers willing to move fast and focus on emerging areas could see strong returns, especially as affordability and job access remain central to demand. Strategic positioning in both major hubs and overlooked regions could define success in Texas housing in the coming year.
