Texas Real Estate Forecast 2024, 2025, 2030

Published: Friday, June 13, 2025 at 7:23 pm

**Texas Real Estate Market: A Look Ahead**

Texas, the second-most populous state in the U.S., is experiencing a dynamic real estate market. Driven by robust economic growth, particularly in major cities like Dallas, Houston, and Austin, the state's economy has expanded significantly, reaching over $2.6 trillion. In 2023, Texas's economy grew by 7.4%, outpacing the national average. This growth has attracted businesses, investors, and new residents, including a significant influx from California.

The Texas real estate market is influenced by various factors, including mortgage rates and housing supply. The state's four major markets – Austin, Dallas, Houston, and San Antonio – are driving much of the growth. The statewide median home price in the second quarter of 2024 was $345,000, up 0.6% year-over-year, with active listings up over 40% and inventory rising to 4.6 months, suggesting a potential market softening.

Economic expansion, job creation, and urban sprawl are key drivers of the market. Texas leads the nation in job creation, and its business-friendly environment continues to attract companies. Secondary markets are also gaining attention due to affordability and improved infrastructure. Foreign investment, particularly from Mexico, is also playing a role.

Looking ahead, the market faces both opportunities and challenges. The forecast for 2024 anticipates a continued drop in home prices, potentially by 1% to 3%, influenced by mortgage rates. The 2025 outlook depends on interest rates and economic conditions. While national real estate sales are expected to improve, Texas may see more modest price increases. By 2030, the state's population is projected to reach 32.2 million, potentially driving up home prices if supply cannot keep pace with demand. Challenges include affordability concerns, climate-related risks like hurricanes and power grid reliability, and rising home insurance costs.

BNN's Perspective: The Texas real estate market presents a mixed bag. While the state's economic strength and population growth offer long-term potential, rising interest rates, affordability concerns, and climate-related risks warrant caution. Investors and potential homebuyers should carefully assess market conditions and consider the long-term implications of these factors.

Keywords: Texas real estate, real estate market, Texas economy, home prices, mortgage rates, housing market, Dallas, Houston, Austin, San Antonio, investment, forecast, 2024, 2025, 2030, affordability, job growth, population growth.

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