Texas Mortgage Costs at a Glance

Property Tax

1.25%

Nat. Avg: 1.07%

Median Home Price

$330,000

Nat. Avg: $287,000

Avg. Insurance/yr

$3,960

Nat. Avg: $1,428

Conforming Loan Limit

$806,500

2026 FHFA limit

Understanding Texas Real Estate

Texas is the nation's second-largest economy and most dynamic real estate market, drawing millions of new residents with its combination of no state income tax, a median home price around $330,000 for the vast state, and an economic diversity spanning energy, technology, aerospace, and finance. From the cultural richness of Austin and San Antonio to the global ambitions of Dallas and Houston, Texas delivers big on promise.

Property Taxes in Texas

Texas has no state income tax, but compensates with property taxes that average approximately 1.25% effective rate statewide — above the national average of 1.07%. Combined metro rates in Dallas, Houston, and San Antonio often range from 2.0–2.3%, making property taxes the primary direct tax burden for homeowners. Texas voters approved Proposition 13 in November 2025, raising the school district homestead exemption from $100,000 to $140,000, saving the average homeowner approximately $1,763 per year. Annual appraisal increases are capped at 10% for primary residences, and all homeowners must file for the homestead exemption separately — it is not automatic.

Texas Housing Market Summary

Texas's housing market in 2025-2026 reflects a complex adjustment: rapid price growth through 2022 was followed by inventory expansion and price moderation in several major metros. The statewide median as reported by the Texas Real Estate Research Center is approximately $330,000 as of December 2025, with year-over-year sales volume up 6.1%. Austin has seen the most significant price correction from pandemic peaks, while Dallas-Fort Worth remains highly competitive. San Antonio and Houston offer more accessible entry points with strong employment growth in energy, healthcare, and manufacturing. Texas's vast geographic diversity means buyers can find everything from $150,000 rural properties to $5 million River Oaks mansions.

Texas Real Estate History

Texas real estate has been shaped by oil booms and busts, dramatic population growth, and an increasingly diversified economy. The 1980s oil bust caused devastating value declines in Houston and other energy-dependent markets, setting the stage for a cautious recovery through the 1990s. The tech boom of the late 1990s transformed Austin from a college town into a genuine technology hub, establishing the 'Silicon Hills' corridor that continued attracting major employers for decades. Post-2010 corporate relocations accelerated dramatically as companies like Tesla, Oracle, HP, and Hewlett Packard moved headquarters to Texas for its business-friendly regulatory environment and access to talent. The pandemic produced the most extraordinary appreciation in state history, with Austin prices surging 60%+ before moderating in 2022-2023.

The Texas Homebuying Process

Texas is a title company state — licensed title companies or escrow companies conduct real estate closings rather than attorneys, though legal counsel is optional for complex transactions. There is no state real estate transfer tax in Texas, a significant cost advantage. The state does require buyers to obtain an independent survey (not just a title search) in most lender-required transactions, typically costing $400–$600. Earnest money is typically held by the title company and commonly runs 1% of the purchase price. Texas real estate contracts use standardized TREC (Texas Real Estate Commission) forms. The homestead exemption must be filed separately after purchase — buyers cannot assume prior owners filed it.

Top Cities to Consider in Texas

Houston, the energy capital of the world, is also America's most diverse major city, anchored by the Texas Medical Center — the world's largest medical complex — alongside aerospace, petrochemical, and a rapidly expanding technology sector. Dallas-Fort Worth is the headquarters metro for a disproportionate share of Fortune 500 companies including AT&T, Toyota, and American Airlines, creating one of the nation's most robust white-collar job markets. Austin, the state capital and home to the University of Texas, became Silicon Hills during the tech boom and remains a major tech employment center attracting residents seeking live music, outdoor recreation, and innovative culture. San Antonio offers exceptional value with a strong military presence at Joint Base San Antonio, a booming healthcare sector, and world-class attractions led by the historic River Walk.

Why Move to Texas?

Texas's economic promise is backed by real numbers: no state income tax saves the average professional household $5,000–$20,000 annually compared to high-tax states, and housing remains meaningfully more affordable than California, New York, or Massachusetts even after years of appreciation. The Texas economy consistently leads the nation in job creation, and the state's diversity of industries — from oil to tech to aerospace to healthcare — provides resilience against sector-specific downturns. Texas's food culture, from Houston's extraordinary international restaurant scene to authentic Tex-Mex along the Mexican border and legendary Hill Country BBQ, is one of America's great culinary traditions. The state's sheer geographic variety — Gulf Coast beaches, Big Bend's desert mountains, the Hill Country's spring wildflowers — provides endless recreational diversity.