Texas Housing: What’s Happening in 2025 and How to Navigate It

If you’re thinking about moving to Texas or investing in a Lone Star home, you’ve landed in the right spot. The market this year is buzzing with growth, but it also throws a few curveballs. Let’s break down the biggest trends, price clues, and rental hacks so you can make a smart move without the headache.

Home Prices: Where Do You Stand?

Across the state, median home prices are hovering around $350,000, but local flavor matters. Austin’s tech boom keeps its median near $550,000, while cities like San Antonio and El Paso sit closer to $250,000. If you’re hunting for a 2‑bedroom starter, expect to pay $120,000‑$180,000 in the suburbs of Dallas‑Fort Worth, and $200,000‑$260,000 in central Austin.

One shortcut to gauge affordability is the 3‑X rent rule many landlords use: they want your annual income to be three times the rent. For a $1,800 monthly rent, that means a $65,000 yearly salary. Knowing this helps you set realistic expectations before you even start browsing listings.

Renting in Texas: Tips to Keep More Money in Your Pocket

Rental demand stays high, especially in fast‑growing metros. To stay ahead, act fast on new listings, and always have your paperwork (pay stubs, credit report, references) ready. If you’re looking at a city with rent‑control caps—like parts of Austin—double‑check the legal limits so you don’t overpay.

Landlords often calculate square footage to justify rent. A 1,000‑sq‑ft apartment might command $1,200, while a similar space in a lower‑density suburb could be $900. Knowing the per‑square‑foot cost helps you spot over‑priced units.

For those on a budget, consider off‑grid options. Some Texas counties have cheaper land parcels that let you build a modest home while saving on utilities. The upfront cost can be lower, but be ready for the extra work of setting up power and water.

Whether you buy or rent, keep an eye on the 5‑year rule for capital gains. If you plan to sell within five years, you might face higher taxes, so timing your move matters for your wallet.

Quick recap: Texas homes are pricey in hot metros but still affordable in many suburbs; renters should be ready with docs and watch rent‑increase limits; and off‑grid living offers a low‑cost alternative if you’re willing to go DIY.

Ready to start your Texas housing adventure? Grab a local realtor, set a budget using the 3‑X rule, and start scrolling listings with a clear idea of what each city offers. The Lone Star state has room for every budget—just know where to look.