Must-Read Report: David Goodnight Austin’s Expert Analysis of Texas Real Estate Trends, Cities & Investment Wins in 2026
- David Goodnight Austin
- Feb 2
- 7 min read
David Goodnight Austin- Experts are saying that the Texas property market has entered what they refer to as a "return to normal" phase. 2026 brings a situation to buyers and sellers where there is a good balance of supply and demand, inventory is better, and buyers have real negotiating power following fast rises in prices and very tough competition over the last few years. Here you will find a Texas real estate guide that will show you current prices and market trends.
How Is the Real Estate Market in Texas Right Now?
2026 is going very well for the real estate market in Texas as it is showing balanced conditions with more homes for sale and prices stabilizing at $330,000 to $350,000 almost everywhere in the state. It was a dramatic change from the 2020-2021 panic situation.
The market is not going down; it is getting back to normal, and there is not a single piece of data that supports a crash. Buyers get the chance to make informed decisions without being forced into bidding wars.
Current Market Conditions:
● Active Listings: Inventory has gone up, so the market is more buyer-friendly
● Days on Market: On average, people sell their homes in just over a month
● Price Negotiations: It is now common to see sellers offering concessions such as paying closing costs or buying down interest rates
● Market Balance: There is roughly equal competition between buyers and sellers
Inventory and Competition Levels
Thanks to a significant rise in home availability, the Texas real estate market is showing more options for buyers, which means less pressure and more time to make well-informed decisions.
The number of houses for sale in the Texas Hill Country region has risen sharply, which means many buyers can get more choices, less stress and better bargaining power. Buyers can now think of checking out neighborhoods, comparing properties, and negotiating better deals.
Mortgage Rate Trends
Mortgage interest rates went down to the lowest point of 2025 recently, but they may be above 6% throughout 2026 because of inflation and increased Government borrowing. The National Association of Realtors expects that mortgage rates will return to around 6%, which is a big improvement in comparison to the 7% to 7.5% range of 2023 and 2024.
Mortgage rates are going down slightly, making it more affordable again to take a loan as compared to the past few years, and the door is now open for buyers who previously could not afford a home.
What Is the Average House Price in Texas?
Texas is still one of the large states that has a relatively affordable cost of living and housing, although local prices can vary a lot.
Statewide Pricing:
● The average home value in Texas is $306,682, which is 2.2% lower than in the previous year.
● The median home sales price is expected to be $350,000 with a 1.5 per cent increase.
● Single-family rental prices generally range from $2,200 to $2,300
Major Metro Price Comparison
Each Texas city being different means they each have their own house price patterns that are mainly influenced by the local economy and the number of people moving in.
Metro Area | Approximate Median Price | Market Trend |
Austin | $520,000 | Slight year-over-year decreases or flat performance expected in first half of 2026, potentially stabilizing in latter half |
Dallas-Fort Worth | $400,000+ | Driven by corporate relocation demand |
Houston | $300,000 - $330,000 | Stable pricing with consistent demand |
San Antonio | $300,000 - $330,000 | Market should stay stable through 2026, with modest price appreciation and growing buyer activity |
Is Buying a House in Texas Worth It in 2026?
Definitely, purchasing a house in the Texas real estate market in 2026 is the right decision. However, the reasons for this have changed from the possibility of quick price appreciation to the security of the property value in the long run.
Main Advantages:
● Apart from State Income Tax, you can save an extra amount every month that can be used to pay the mortgage.
● Economic Growth: Texas is the leading state in the US in terms of job creation, especially in the technology and energy sectors
● Population Growth: Out of the total 9 million people added to the U. S. population during the last five years, about 25% have moved to Texas
● Investment Triumphs: Rental properties are currently generating good cash flow as the rates of rents are increasing faster than the prices of homes
Texas Real Estate Investment Opportunities
Investors can find many advantages in the Texas real estate market in 2026. A steadily increasing population in the state leads to a constant demand for rental properties.
The rental property market in Texas notably benefits from the "yield play" concept. If the rate of rent increase is higher than that of the purchase price, the return on investment will be greater. This, in turn, gives a much better cash flow when compared to those markets wherein prices are soaring excessively.
Property Tax Considerations
There is no state income tax in Texas; however, the property taxes compensate for this difference. Property tax normally amounts to about 1.6% to 2% of the market value of a house. You will have to consider that in your monthly expenses.
If you buy a house that costs $350,000, the property taxes may amount to $5,600 up to $7,000 annually. That's an additional $467 to $583 in your monthly housing expenses apart from your monthly mortgage payment.
Which Are the Best Texas Cities for Real Estate Investment?
Each of the Texas markets has different real estate features that cater to various investor strategies and buyer preferences.
Analyzing Austin Market
House prices have declined from the 2021-2022 snap levels, and thus the market is more favorable to buyers. Therefore, Austin is considered a "buy the dip" kind of market for long-term investors.
The technology sector is a major factor in the economy of Austin. It is a fact that some of the biggest companies have either their headquarters or a large part of their operations in the city. This is a great support for both job growth and housing demand.
Dallas-Fort Worth Real Estate Potential
The PwC's report of "Emerging Trends in Real Estate" placed Dallas-Fort Worth at the top in terms of the market to watch in 2026 for total investment and development opportunities. The redeployment of businesses is among the factors that drive growth in the area demand.
The DFW area is a combination of a robust economy with a reasonable price level in comparison with the cities located on the coast. There is also a continuous movement of companies that bring high-earning jobs to the region.
Houston and San Antonio - Affordable Market
These two cities are the most affordable among the big Texas metros. The energy corridor in Houston and the medical sector in San Antonio both provide stable employment bases.
They are also good places for first-time buyers and investors who are aiming for the higher cash-on-cash returns. The rental income can be used to pay for a higher percentage of costs when the purchase price is lower.
What Does the Sales Forecast for Texas in 2026 Say?
Initiating the year with slow and weak sales activity, home sales later on the spring homebuying season bounced back sharply with a projection of 2% increase to almost 340,000 total units sold. The National Association of Realtors has penciled in a 14% rise in home sales for 2026.
This increase marks the first significant rise after the pandemic. The Texas property market is stabilizing after years of upheaval.
Seasonal Patterns in Buying
The property market follows regular seasons. If you know these well, you'll be able to find the perfect time to buy or sell property.
Best Times to Buy:
● The end of summer and fall is when properties take longer to be sold.
● Winter months, when there is less competition
● After interest rate hikes, when the majority of buyers are not active
Best Times to Sell:
● Spring selling season (March-May)
● Early summer before school starts
● Different quarters depending on the state of the housing market, such as low inventory in your neighborhood
What about the Comparison of the Texas Real Estate Market with Other States?
Texas real estate market beats many states on different metrics. A mix of no state income tax, business-friendly regulations, and job growth provides a strong basis.
Texas advantages:
● Less expensive day-to-day life than the sea-coast states
● The absence of state income tax
● Availability of jobs in various sectors
● Rising population
● Varied sectors (energy, technology, healthcare, manufacturing)
Other states can provide a few other benefits, like lower property taxes or cheaper insurance. However, hardly any other state can offer such a mix of economic opportunities and housing affordability as Texas.
What Is the Situation with Commercial Real Estate in Texas?
Retail tenants across the state will take up around six million square feet in 2026. As the population continues to grow, new services and retail will be needed, thus commercial real estate activities are not slowing down.
The office segment is struggling as the remote work trend continues to decrease the demand. On the other hand, retail and industrial properties are the ones showing more energy, especially in suburban areas that are getting bigger.
How Can Comnet International Be of Assistance?
Comnet International continues to be a reliable project finance advisory and developer for major real estate projects in Texas. With over 110 years of combined knowledge reaching completion, the team is highly skilled in the art of structuring complex financing for commercial developments, infrastructure projects, and large-scale residential communities.
Among the areas the company has carved a niche are:
● Project Finance: Designing financing structures for major developments
● Large Residential Projects: Providing support for large-scale housing communities
● Pre-Construction Services: Offering planning and feasibility analysis
● EPC Selection: Helping projects get in touch with qualified engineers and construction companies
Comnet International's headquarters is located in Austin at 500 West 5th Street, and the company partners with developers, investors, and government entities to turn visionary plans into reality.
Take Advantage of the Texas Real Estate Market
In 2026, the Texas real estate market will offer a condition where buyers and sellers who are well-informed can make smart decisions. After several years of unpredictability, the prices have become stable.
The supply has been increased, hence you have more choices. Although mortgage rates are still higher than the historical lows, they are going down.
You should not postpone your real estate transaction until everything is perfect. The Texas real estate market is a place where only those who know the local market, make a quick decision, and have a long-term vision get rewarded.
No matter if you are a first-time homebuyer, a person upgrading to a bigger house, or a real estate investor in the rental market, Texas has various opportunities for different prices and types of properties.
If you are interested in exploring real estate opportunities in Texas, check out Comnet International to find out how their project finance and development advisory services can help you in your next real estate journey. With a deep understanding of major residential projects, infrastructure development, and sophisticated financing structures, Comnet is your partner in turning your ambitious real estate plans into reality, not only in Texas but worldwide.



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