Best Places to Buy Single-Family Homes in Texas (2026)

Key Takeaways:

• Single-family houses in Texas are in a strong buyer’s market in 2025. Many buyers are specifically searching for the best cities to buy a home in Texas, especially where prices are softening and inventory is high.

• Median home prices are softening, many single-family homes in Texas are staying on the market longer, and prices are expected to drop 2-4% this year.

• Homes are staying on the market longer, giving buyers room to negotiate.

• Taxes and insurance remain high, so full monthly costs matter more than list price.

• Best value markets include Fort Worth, Georgetown, Waco, Killeen, Baytown, and El Paso.

• Builders are offering big incentives, and resale sellers are cutting prices to compete.

The Single-Family Houses in Texas 2025 has shifted into a full buyer’s market. There are more homes for sale, prices are dropping, and sellers are offering bigger discounts. Even though taxes and insurance remain high, Texas is still a strong long-term choice thanks to steady job growth, population increases, and a wide range of affordable markets across the state. This environment gives buyers looking for single-family houses in Texas more options, more negotiating power, and more long-term opportunities.

This guide breaks down the best places to buy, key trends, and what buyers should know before choosing a city - especially if you're comparing the best cities to buy a home in Texas across value, affordability, and long-term growth potential.

Single-Family Houses in Texas 2025 is shifting from the post-pandemic boom into a correction phase. Higher inventory, longer selling times, and widespread price cuts have firmly placed the state in a buyer’s market.

Below is a streamlined breakdown of key trends and long-term attractors shaping Texas housing this year.

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Texas is seeing strong sales activity, but excess supply is pushing prices downward-especially in the segment of single-family houses in Texas.

1. Statewide Median Price (Sept 2025): $330,000

2. Trend: September marked the third consecutive month of YoY price declines, with the Home Price Index down 0.8% YoY.

3. 2025 Outlook: Prices are expected to continue softening through the year-end, with a total decline of 2%-4%. Earlier forecasts expected the year to end above $350,000, but that has adjusted due to slower growth and higher supply.

4. Metro Median Prices (Sept 2025):

• Austin-Round Rock-San Marcos: $415,000 (largest declines)

• Dallas-Fort Worth-Arlington: $386,700 (-1% YoY)

• Houston-Pasadena-The Woodlands: $325,000

• San Antonio-New Braunfels: $310,000 (-1.9% YoY)

High supply continues to define the market for single-family houses in Texas in 2025.

More inventory means better leverage for anyone buying single-family houses in Texas. Texas is a best place to buy in 2025 with more homes, lower prices, and strong seller deals, but taxes and insurance are high. The market is expected to rise again as jobs and population grow.

This section highlights the major factors shaping the ideal locations for buyers interested in single-family houses in Texas.

Affordability is tight in many metros, but long-term appreciation potential remains strong for single-family houses in Texas due to consistent job and population growth.

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Here are the top-rated districts that are considered some of the best areas for single-family houses in Texas for families.

• Highly Rated Suburbs: Areas like Frisco, Prosper, Mansfield, Melissa, and Aledo attract families for their strong schools and extensive community amenities.

• Infrastructure Pressure: Rapid expansion has strained services in cities like Round Rock and Frisco, leading to congestion, overwhelmed schools, and pressure on utilities.

Low-crime, family-oriented neighborhoods continue to attract buyers searching for safe single-family houses in Texas. Buyers increasingly prioritize the safest places to live in Texas and neighborhoods with strong schools, rather than choosing homes based only on the broader metro area.

Texas remains one of the strongest U.S. economies, and job stability plays a major role in long-term value for single-family houses in Texas.

1. 2025 Economic Forecast: Texas GDP is projected to grow 3.3%-3.7%, with payroll employment rising 2.0%-2.4%.

2. Metro Anchors:

• Dallas continues to pull major corporate relocations across finance, tech, and logistics.

• San Antonio is accelerating growth in cybersecurity and bioscience.

3. Vulnerable Markets: Cities like Garland and Denton show stress from layoffs, retail vacancies, and wage stagnation. Austin is navigating tech layoffs and the impact of remote-work reversals.

Property tax differences across counties can significantly affect affordability for single-family houses in Texas. Some counties exceed 2%+ effective tax rates.

1. State Average: Effective tax rate of 1.63% (vs. U.S. average of 0.90%).

2. Higher-Tax Counties:

• El Paso County: 2.14%

• Fort Bend County: 2.06% (driven by extensive special districts)

• Tarrant County: 1.82%

3. Highest Annual Payments:

• Collin County median: $7,202

• Travis County median: $7,160

DFW and San Antonio remain strong rental markets, while overbuilt metros like Austin and Garland create challenges for investors purchasing single-family houses in Texas for rental income.

• Pressure in Overbuilt Markets: Rents are flattening and vacancies rising in cities like Irving, Austin, and Garland-reducing investor returns.

• Strong Markets: Dallas and San Antonio remain top choices due to consistent job growth and a deep, reliable tenant base.

The Texas housing market 2025 is undergoing a deep correction, giving buyers more leverage. This section highlights how each city performs and where buyers have the strongest opportunities - especially those evaluating the best cities to buy a home in Texas based on price cuts, job growth, and affordability.

Frisco, McKinney, Prosper, Melissa, and Fort Worth all show unique advantages for buyers exploring single-family houses in Texas:

Frisco, known for A-rated schools and upscale living, has become the prime example of a suburb where rapid growth outpaced fundamentals.

1. Buyer Opportunity: Aggressive builder incentives-like free Tesla chargers or $20,000 rate buy-downs-signal a sharp cooldown after years of frenzied demand.

2. Cost Burden:

• Monthly payments near $4,800 at 7% rates

• Property taxes near 2% = $12,000+ annually

• Insurance averages $5,000

Once one of America’s fastest-growing cities, McKinney now faces affordability challenges and infrastructure strain.

• Buyer Opportunity: Price cuts between $25,000-$50,000 are widespread.

• Long-Term Costs: Collin County homeowners pay a median $7,202 in property taxes (effective rate 1.75%).

These northern DFW suburbs are benefiting from population inflow from pricier areas like Frisco.

• Prosper: Known for upscale new builds, rapid development, and long-term appreciation potential.

• Melissa: Offers an A-rated school district, small-town feel, and strong new construction activity.

• Buyer Appeal: Ideal for those seeking modern homes, larger lots, and steady growth momentum.

Fort Worth presents a more affordable alternative within the DFW region while still offering strong job access and solid schools.

1. Affordability

• Housing costs: 24.34% of median income (better than Dallas at 25.54%)

• Median monthly homeowner cost: $1,705

2. Family Appeal

• Western suburbs like Aledo offer top-tier schools and scenic master-planned communities.

• Mansfield is praised for its central location, parks, and affordability-ideal for first-time buyers.

3. Taxes: Tarrant County’s effective tax rate is 1.82%, with homeowners paying about $4,911 annually.

Thinking about moving to Fort Worth? Explore the best neighborhoods to live in Fort Worth, TX for families, professionals, and first-time buyers.

Once promoted as an ideal family hub with strong schools and employers like Dell, Round Rock is now showing visible stress in 2025.

• Monthly payments often exceed $3,200, creating major affordability strain for average-income households.

• Infrastructure is heavily stressed: I-35 traffic jams and rapidly growing school enrollments.

• Migration into Round Rock is slowing, with families choosing cheaper towns like Taylor and Georgetown.

• Property taxes are high - about 2.1%, or roughly $9,500/year on typical homes.

These northern Austin suburbs Leander & Cedar Park soared during the tech boom-but 2025 has revealed severe market overheating.

• With 7% mortgage rates, monthly payments near $3,800 are unsustainable relative to the local $84K average income.

• Infrastructure has not kept pace - severe congestion on Hwy 183 and overcrowded schools.

• Insurance costs have risen to nearly $4,500/year due to hail and storm risk.

• Families are leaving for nearby towns where homes can cost $150,000 less.

Georgetown is not collapsing like its neighbors. Instead, it is benefiting as families seek better value outside the overheated northern suburbs.

Attracting buyers priced out of Round Rock and Cedar Park.

• Offers more home for the money and better long-term affordability.

• Popular for master-planned communities with lower overall cost burdens.

Austin remains the hardest-hit market in Texas, with broad-based price drops and weakened demand.

• Austin remains the most strained part of the Texas housing market in 2025.

• Prices have fallen from $570K peak to near $520K, with some areas seeing 10-15% YoY declines.

• Despite falling prices, affordability is still strained due to high taxes and insurance, pushing monthly payments above $4,500.

• Inventory has surged nearly 60% as demand weakens from tech layoffs and remote-work reversals.

• Many buyers are shifting to smaller, cheaper Central Texas towns instead of Austin’s core.

Dallas remains a long-term growth market, but 2025 brings a sharp correction. Inventory is up significantly, pushing prices down and raising monthly costs above $3,100. Despite the short-term dip, Dallas’s diverse economy keeps it an attractive long-term buy.

San Antonio combines low entry prices with expanding sectors like cybersecurity, bioscience, and military jobs. With mild price declines and monthly costs near $1,223, it remains one of the most stable and investor-friendly major metros in Texas.

If San Antonio is on your radar, dive into the best neighborhoods to live in San Antonio, TX to find the right fit for your lifestyle and budget.

El Paso offers unmatched affordability, with monthly housing costs under $1,000 and one of the best housing-to-income ratios nationally. High tax rates are offset by low home prices, making it ideal for buyers prioritizing budget stability.

Houston offers diverse communities for every type of buyer. Check out the best neighborhoods to live in Houston before choosing your ideal area.

Affordability in Texas goes far beyond sale price. High Texas property taxes, rising insurance costs, and elevated rates make the housing-to-income ratio the key metric to watch. Ideally, your housing payments should stay under 28% of your gross income.

1. Most Affordable Options:

• El Paso: Lowest cost burden at 20.35% of income; typical payment $985/month.

• San Antonio: Strong value with a 23.63% affordability ratio.

2. High-Cost Metros (Budget Risk):

• Austin: Ratio at 25.52%, with especially high carrying costs in nearby suburbs.

• Frisco: Median home $620,000+, monthly payment near $4,800.

• Cedar Park: $3,800 monthly payment vs. local incomes near $84K, making it largely unattainable.

3. Property Tax Impact:

Texas ranks among the highest-taxed states (avg. 1.63%).

• Collin County: $7,202/year

• Travis County: $7,160/year

• Garland: 2.2% rate → $7,500/year on a $340,000 home

4. Lifestyle Factors:

• Best for Families (High Cost): Frisco, Melissa, Aledo-all with A-rated schools.

• Overstretched Suburbs: Round Rock (severe traffic, crowded schools), McKinney (infrastructure strain).

• Lower-Cost Alternatives: Taylor and Georgetown offer similar lifestyle benefits with homes often $150K cheaper.

If you're considering a low-maintenance home, see our guide on the best places to buy condos in Texas for strong value and lifestyle benefits.

Traffic levels vary drastically across metros and can significantly impact quality of life.

1. Central Texas Congestion:

• Round Rock / I-35: LA-level traffic.

• Cedar Park / Hwy 183: Heavy daily gridlock.

• Austin / I-35: Consistently clogged.

2. DFW Congestion:

• Frisco: Tollway bottlenecks.

• Irving: Overbuilt urban core + rush-hour gridlock.

3. Remote Work Dynamics: Hybrid work gives buyers more location flexibility, but slowing corporate relocations (Irving) and tech layoffs (Austin) are reshaping demand patterns.

Most high-demand suburbs feature master-planned communities with HOAs.

• New-Construction Suburbs: Frisco, Prosper, Forney-amenities + required HOAs.

• Buyer Incentives: In soft markets (e.g., McKinney), builders now offer perks like covering HOA fees.

• Costs: HOA fees factor into your total monthly housing burden.

Not a W-2 employee or traditional borrower? Learn how Non-QM Loans in Texas can help you qualify for a home with flexible income requirements.

With a 5.5-month statewide supply, buyers have strong leverage in both segments.

1. New Construction (High Inventory): Builders are offering aggressive incentives due to oversupply:

• $20K rate buy-downs

• Covered HOA fees

• Free upgrades or appliances

• Closing cost credits

Hotspots: Frisco, Prosper, Melissa, Aledo.

Value Markets: Forney offers affordable new builds.

Risk: Overbuilt suburbs like Cedar Park show $50K price cuts on new luxury homes.

2. Resale Homes (Widespread Price Cuts): Resale sellers are struggling to compete with builder incentives.

• Price cuts in 40% of Garland listings, often $15K-$30K

• McKinney: $25K-$50K reductions common

• Statewide median price cut: $17K

• Average days on market: 96

1. Underestimating total homeownership costs, especially high Texas property taxes and rising insurance premiums.
2. Buying in cities with unsustainable price-to-income ratios that strain long-term budgets.
3. Choosing suburbs with severe congestion, overloaded schools, and stressed utilities.
4. Failing to negotiate aggressively in a buyer’s market with abundant inventory and widespread price cuts.
5. Overlooking major builder incentives such as rate buy-downs, HOA coverage, and upgrades.
6. Relying on appreciation instead of cash flow in markets where rents are flat and vacancies are rising.
7. Purchasing in weak market segments like mid-tier homes ($350K-$600K) that have declining sales.

Texas is a buyer’s market in 2025 with lots of homes, price cuts, and strong negotiation power. Focus on your full monthly cost (taxes + insurance), choose cities with strong job growth, and look for good school districts if buying for a family. Avoid overstressed suburbs with high prices and traffic issues. Check smaller cities like Waco, Baytown, Killeen, or Georgetown for better value.

Builders are offering big incentives, so compare new homes with resale price cuts. For rentals, Fort Worth, Houston, San Antonio, and Katy give better cash flow. Avoid assuming fast appreciation and always negotiate.