The Texas market in 2026
Texas is one of the more buyer-friendly markets in the country right now, and that's mostly thanks to new construction. Texas builds more homes than any other state, and that steady supply has kept prices in check while a lot of the rest of the country stayed tight.
The statewide median home price sits around $345,000 in early 2026, below the national median. Key dynamics:
Inventory is healthy, especially in the metros with heavy new construction (Houston, San Antonio, the Dallas suburbs).
Days on market have stretched out. Buyers have negotiating room.
Builders are offering big incentives: rate buydowns, closing-cost credits, and price cuts on standing inventory.
Austin, which boomed hardest from 2020 to 2022, has corrected the most. Prices there are down meaningfully from the peak.
The big-picture story: Texas never had the extreme price lock-up that supply-constrained states did, so it's a more normal, negotiable market in 2026.
The Texas buyer's advantages
No state income tax
Texas has no state income tax. For a buyer relocating from a high-tax state, that's an instant raise, and it's one of the main reasons people and companies have flooded in.
Lots of new construction
More new homes means more choice, more builder incentives, and less of the bidding-war pressure you find in supply-starved markets. If you like the idea of a brand-new home, Texas is one of the best states to buy one.
A big homestead exemption
Texas raised its school-district homestead exemption to $100,000 in 2023, which knocks a real chunk off the property tax bill on a primary residence. There's also a 10 percent annual cap on how much your appraised value can rise.
The Texas market in 2026
Texas is one of the more buyer-friendly markets in the country right now, and that's mostly thanks to new construction. Texas builds more homes than any other state, and that steady supply has kept prices in check while a lot of the rest of the country stayed tight.
The statewide median home price sits around $345,000 in early 2026, below the national median. Key dynamics:
Inventory is healthy, especially in the metros with heavy new construction (Houston, San Antonio, the Dallas suburbs).
Days on market have stretched out. Buyers have negotiating room.
Builders are offering big incentives: rate buydowns, closing-cost credits, and price cuts on standing inventory.
Austin, which boomed hardest from 2020 to 2022, has corrected the most. Prices there are down meaningfully from the peak.
The big-picture story: Texas never had the extreme price lock-up that supply-constrained states did, so it's a more normal, negotiable market in 2026.
The Texas buyer's advantages
No state income tax
Texas has no state income tax. For a buyer relocating from a high-tax state, that's an instant raise, and it's one of the main reasons people and companies have flooded in.
Lots of new construction
More new homes means more choice, more builder incentives, and less of the bidding-war pressure you find in supply-starved markets. If you like the idea of a brand-new home, Texas is one of the best states to buy one.
A big homestead exemption
Texas raised its school-district homestead exemption to $100,000 in 2023, which knocks a real chunk off the property tax bill on a primary residence. There's also a 10 percent annual cap on how much your appraised value can rise.
Texas has been the number one destination for movers in the country for years. People come for the jobs, the space, the lack of a state income tax, and home prices that still look reasonable next to California or the Northeast. More than 1,000 people move to Texas every day.
But Texas is enormous. The four major metros — Houston, Dallas-Fort Worth, Austin, and San Antonio — are each bigger than most states' largest cities, and they have very different markets, price points, and personalities. Buying in Austin is nothing like buying in Houston.
If you're house-hunting in Texas in 2026, here's the lay of the land: the market, the metros, the money, and what to watch out for.
Texas has been the number one destination for movers in the country for years. People come for the jobs, the space, the lack of a state income tax, and home prices that still look reasonable next to California or the Northeast. More than 1,000 people move to Texas every day.
But Texas is enormous. The four major metros — Houston, Dallas-Fort Worth, Austin, and San Antonio — are each bigger than most states' largest cities, and they have very different markets, price points, and personalities. Buying in Austin is nothing like buying in Houston.
If you're house-hunting in Texas in 2026, here's the lay of the land: the market, the metros, the money, and what to watch out for.
The catch: property taxes
Here's the thing every Texas buyer needs to understand. Texas has no income tax, but it makes up for it with some of the highest property taxes in the country. The effective property tax rate runs around 1.6 to 1.7 percent statewide, and some counties and districts push higher. On a $350,000 home, that's roughly $5,600 to $6,000 a year. On a $500,000 home, it's around $8,000 to $8,500.
That changes the affordability math. A $400,000 home in Texas can cost more per month than a $400,000 home in a lower-tax state once you fold in the tax bill. Budget for it, and always check the specific rate for the exact address and school district, because it varies a lot.
The upside: the $100,000 homestead exemption and the 10 percent appraisal cap meaningfully soften the hit on your primary residence. Apply for the homestead exemption as soon as you own and occupy the home.
The four major metros
Houston
The biggest metro in Texas and one of the most affordable major cities in the country. Houston runs on energy, the world's largest medical center, the port, and aerospace. It's sprawling, diverse, and humid, with Gulf hurricane risk. Median home price: around $340,000. Popular areas range from the walkable Heights and Montrose near the center, out to family suburbs like Katy, Sugar Land, The Woodlands, and Cypress. Watch for flooding — Houston has a serious flood history (Hurricane Harvey in 2017 was catastrophic), and plenty of homes that flooded weren't in a designated flood zone.
Dallas-Fort Worth
The largest metro by population, often called the Metroplex. It's a corporate and finance powerhouse, with a huge number of company headquarters, a strong job market, and seemingly endless suburbs. Median home price: around $400,000. Suburbs like Frisco, Plano, McKinney, and Arlington offer newer homes and strong schools across a range of prices. North Texas gets real seasons, including spring tornado risk and occasional winter ice storms.
Austin
The tech hub and former boomtown. Austin grew faster than almost anywhere in the country from 2020 to 2022, then corrected hard. Median home price: around $450,000 in the metro, down from a peak near $550,000. Popular areas include the close-in central neighborhoods plus suburbs like Round Rock, Cedar Park, and Georgetown.
San Antonio
The most affordable of the four major metros, with deep Hispanic cultural roots, a growing job base, and a more laid-back pace. Median home price: around $300,000. Popular areas include close-in neighborhoods near downtown and the Pearl, plus growing suburbs to the north like Stone Oak.
Property taxes and insurance, by the numbers
Quick reference for budgeting on a $400,000 Texas home:
Property tax: roughly $6,400 to $6,800 per year before exemptions, less with the homestead exemption
Insurance: roughly $2,500 to $4,500 per year, higher near the Gulf Coast
Both vary by metro, county, and the specific property. Always pull the exact tax rate and an insurance quote for the specific address before you go under contract.
The buying process in Texas
Texas has a few quirks worth knowing before you start.
Texas uses a standard promulgated contract (the TREC contract) for most resale deals, which keeps things consistent.
The option period is a Texas-specific feature: you pay a small fee for an unrestricted right to terminate during a set window (usually 5 to 10 days), which is when you do your inspection.
Texas is a non-disclosure state, meaning sale prices aren't public record — that makes comp analysis harder and makes good data more valuable.
Closing is handled through a title company.
Typical timeline for a financed purchase:
Pre-approval: 3 to 14 days
Touring homes: 2 weeks to 4 months
Going under contract: a few days after offer
Option period and inspection: 5 to 10 days
Appraisal and underwriting: 2 to 4 weeks
Closing: 30 to 45 days after going under contract
Texas-specific gotchas
Property tax surprises
Because Texas is a non-disclosure state and rates vary so much by district, your actual tax bill can be very different from a nearby home. Always confirm the rate for the specific property, and don't trust the listing's estimate.
Flooding in Houston
Houston's flood risk is real and not limited to the coast. Many homes flooded during Harvey that weren't in a designated flood zone. Check flood history and consider flood insurance even outside the required zones.
MUD districts
Many newer Texas suburbs sit in Municipal Utility Districts (MUDs), which add a separate tax to fund infrastructure. A home in a MUD can carry a noticeably higher tax rate. Check for it before you buy.
Foundation issues
Texas has expansive clay soils, especially around Dallas and Houston, that cause foundation movement. Foundation repair is common. Get a thorough inspection and ask about any history of foundation work.
Hail and roof age
North and central Texas get serious hail. Roofs take a beating, and insurers care a lot about roof age and condition. Factor in roof replacement timing on any older home.
Property taxes and insurance, by the numbers
Quick reference for budgeting on a $400,000 Texas home:
Property tax: roughly $6,400 to $6,800 per year before exemptions, less with the homestead exemption
Insurance: roughly $2,500 to $4,500 per year, higher near the Gulf Coast
Both vary by metro, county, and the specific property. Always pull the exact tax rate and an insurance quote for the specific address before you go under contract.
The buying process in Texas
Texas has a few quirks worth knowing before you start.
Texas uses a standard promulgated contract (the TREC contract) for most resale deals, which keeps things consistent.
The option period is a Texas-specific feature: you pay a small fee for an unrestricted right to terminate during a set window (usually 5 to 10 days), which is when you do your inspection.
Texas is a non-disclosure state, meaning sale prices aren't public record — that makes comp analysis harder and makes good data more valuable.
Closing is handled through a title company.
Typical timeline for a financed purchase:
Pre-approval: 3 to 14 days
Touring homes: 2 weeks to 4 months
Going under contract: a few days after offer
Option period and inspection: 5 to 10 days
Appraisal and underwriting: 2 to 4 weeks
Closing: 30 to 45 days after going under contract
Texas-specific gotchas
Property tax surprises
Because Texas is a non-disclosure state and rates vary so much by district, your actual tax bill can be very different from a nearby home. Always confirm the rate for the specific property, and don't trust the listing's estimate.
Flooding in Houston
Houston's flood risk is real and not limited to the coast. Many homes flooded during Harvey that weren't in a designated flood zone. Check flood history and consider flood insurance even outside the required zones.
MUD districts
Many newer Texas suburbs sit in Municipal Utility Districts (MUDs), which add a separate tax to fund infrastructure. A home in a MUD can carry a noticeably higher tax rate. Check for it before you buy.
Foundation issues
Texas has expansive clay soils, especially around Dallas and Houston, that cause foundation movement. Foundation repair is common. Get a thorough inspection and ask about any history of foundation work.
Hail and roof age
North and central Texas get serious hail. Roofs take a beating, and insurers care a lot about roof age and condition. Factor in roof replacement timing on any older home.
How Homa is coming to Texas
Homa started in Florida with a simple idea: buyers should keep the commission instead of handing it to a traditional agent. Now Homa is launching in Texas, bringing the same model to one of the biggest and fastest-growing housing markets in the country.
You search with AI tools that pull comps (especially valuable in a non-disclosure state like Texas), flag property conditions, review disclosures, and evaluate flood and climate risk. Local showing specialists tour homes with you. A licensed broker handles your offer and negotiation. A closing coordinator runs the process through the title company.
At closing, the buyer-side commission comes back to you, minus Homa's 1 percent fee. On a $400,000 Texas home, that's around $8,000 back. You can use it to offset those higher Texas property taxes, fund a rate buydown, cover closing costs, or just keep it.
Texas is a market where good data matters more than usual (no public sale prices) and where the tax and insurance math can make or break a budget. Having a licensed broker plus the tools to see the full picture — and getting the commission back on top — is a strong way to buy in the Lone Star State.
How Homa is coming to Texas
Homa started in Florida with a simple idea: buyers should keep the commission instead of handing it to a traditional agent. Now Homa is launching in Texas, bringing the same model to one of the biggest and fastest-growing housing markets in the country.
You search with AI tools that pull comps (especially valuable in a non-disclosure state like Texas), flag property conditions, review disclosures, and evaluate flood and climate risk. Local showing specialists tour homes with you. A licensed broker handles your offer and negotiation. A closing coordinator runs the process through the title company.
At closing, the buyer-side commission comes back to you, minus Homa's 1 percent fee. On a $400,000 Texas home, that's around $8,000 back. You can use it to offset those higher Texas property taxes, fund a rate buydown, cover closing costs, or just keep it.
Texas is a market where good data matters more than usual (no public sale prices) and where the tax and insurance math can make or break a budget. Having a licensed broker plus the tools to see the full picture — and getting the commission back on top — is a strong way to buy in the Lone Star State.
