I’m a Real Estate Expert: 5 Reasons 2025 Is the Year To Buy in Texas
Written by
Martin Dasko
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Based on November 2024 data from Redfin, housing prices had increased 2.3% in Texas year over year, with a median price of $343,800. With the number of homes sold up 7.1% year over year, the median number days a house was on the market was 58.
While housing prices have increased nationwide and there are concerns about possible rate announcements, many real estate experts believe 2025 is the year to buy in Texas.
Here are five reasons 2025 is the year to buy in Texas if you’re looking for a home or an investment property.
Also see how far a middle-class salary goes in seven Texas cities.
Increased Inventory Could Lead to More Buying Opportunities
“From my perspective, there are many sellers that have been waiting to put their house on the market,” said Ryan Rogers, a real estate agent at Douglas Elliman. “With the spring season around the corner, I anticipate an increase in inventory.”
If you haven’t been impressed by the housing options in a while, you could be in luck, as more sellers could enter the market this year. Many sellers likely have hesitated to list because they locked in lower rates during the pandemic months and didn’t want to get stuck with higher mortgage payments.
But real estate experts expect to see changes in 2025 with an increase in inventory across the state.
“This factor, coupled with potentially lower interest rates, will result in buyers having a larger selection of property than we’ve seen in the market recently,” Rogers said.
Interest Rates Should Drop
“With the election season behind us and the rates lowering by 25 basis points, I believe there will be more activity in the market in 2025,” Rogers said. With interest rates expected to drop in 2025, this should make mortgage payments more affordable for those unable to qualify for a mortgage, bringing more activity to the Texas market.
The National Association of Realtors (NAR) forecasts that mortgage rates should stabilize around 6% in 2025, bringing back more buyers to the market and boosting housing activity. This means you’ll want to be proactive about buying a home so that the competition doesn’t increase prices. NAR also predicts 4.5 million existing home sales in 2025 and a median sales price of $410,700 across the country.
The same report also highlighted San Antonio-New Braunfels, Texas, as one of the top 10 housing hot spots for 2025. This highlights that consumers are flocking to various parts of Texas in search of affordable housing and a better lifestyle.
Population Increase Along With Demand
“The state of Texas is still extremely appealing to many new people because of its tax-free policy and attractive job market,” said Andrew Reichek, a real estate expert and owner of Bodebuilders. “Such population growth allows for demand in housing, which makes purchasing land an excellent decision.”
If you’re looking to make a long-term decision, you’ll want to consider purchasing a property in Texas, as the state is becoming more appealing to Americans looking for favorable policies. As the population increases, there will likely be a higher demand for housing, which makes real estate in Texas a decent investment in 2025.
Strong Economy
With more companies moving to the state, there will be an increased demand for homes, making buying a property a wise long-term investment.
“The technology, healthcare and energy sectors continue to grow and provide more employment opportunities to citizens,” Reichek said. “As a result, cities like Austin, Houston and Dallas always have a high number of job seekers, which allows these locales to possess a constant demand for housing.”
“Texas is primed for continued growth in 2025 due to the high number of corporate relocations along with its increasing population, bustling economy and generally lower cost of living than other large cities in the country,” Rogers said.
If you’re not personally ready to move yet, you can consider investing in Texas, as there will be demands for housing, from short-term rentals to longer-term tenants.
Investment-Friendly Policies
“When investors think of Texas, they often associate it with a range of both favorable and relatively soft property rules and high growth potential, as Texas tends to have low property tax frames and a lot of landlord incentives,” Reichek explained.
If you want to invest in property to become a landlord, you may want to explore your options across Texas. The good news is that there are a variety of property types that you can invest in across the state, from rural communities to booming cities.
With the state’s investment-friendly policies and the potential for future appreciation, you could consider buying some property in Texas this year.
More From GOBankingRates
