A guide to buying a home in Texas

Texas is drawing homebuyers of all stripes—and for good reason. From first-time buyers looking to escape high rents to established homeowners seeking a fresh start, the Lone Star State offers something for everyone.

Whether you're a young professional, a growing family, or a seasoned investor, understanding Texas's diverse real estate landscape and knowing which regions align with your goals is essential to making a smart purchase. This guide breaks down how to buy a home in Texas and explores some of the state's most sought-after markets.

A quick glance at the Texas housing market

Let’s take a snapshot look at the Texas housing market as of January 2026.

Housing market trends in Texas

Now let’s drill down and extract some of the details of the Texas housing market.

Home prices

With the median single-family home price in the United States sitting at $422,980 as of January 2026, Texas’s $329,500 is 22.1% below it. This lower home value has to do with a number of factors, including the fact that over the past year, there has been an increase in inventory in the Texas housing market.

The surge was the largest since 2007-2008. It was also led by entry-level homes, creating affordability for first-time as well as seasoned homebuyers.

The price of homes does vary greatly in some areas, especially considering the size of Texas and the variety of environments in Texas. For instance, in metro areas like Austin, Midland, and Dallas-Fort Worth the median price of homes is well above the state’s median. In places like El Paso and San Antonio, it’s below the median.

When you’re deciding where to live or if you can afford an area, a great start is to use Rocket Mortgage’s affordability calculator to get a good idea of how much house you can afford.

Housing demand vs. inventory

Timing in life, and especially in homebuying, is everything. And many believe Texas has been edging toward a buyer’s market over the past year. This is because the median number of days houses stay on the market has increased while the median price has decreased. The number of homes for sale has also increased by nearly 8%.

Real estate markets can vary from one community to the next. What can be a buyer’s market in one city can be a seller’s just over the county line. This is why it’s vital to work with an experienced real estate agent in the area you’re interested in. They will not only know the market conditions but also have local relationships and key insights into specific properties and buyers.

Popular cities to live in Texas

Choosing an area in which to live includes much more than considering housing prices. That is important, but just as crucial is finding a community that fits your lifestyle, where you and your family can thrive. Career opportunities, schools, recreation should be considered just as heavily as affordability.

Here’s a look at 6 popular Texas areas.

Austin

With its variety of attractions and ample job opportunities, Austin appeals to both young professionals looking to build a career as well as families interested in a broad mix of things to do and warmer weather. But with its higher median home prices, it’s for those with a larger budget.

• Population: Approx. 1 million
• Median household income: $93,658
• Median home price: $500,000
• Unique aspects: One of the state’s fastest-growing areas in the country, with a thriving tech industry, live-music scene, and ample outdoor recreation.

Dallas

With over 11,000 restaurants, an inspiring skyline, and a lot of green spaces to balance it out, Dallas appeals to a well-rounded population. There’s a bustling urban scene as well as pleasant suburbs. On the downside, you’ll need to tolerate some traffic and congestion.

• Population: Approx. 1.3 million
• Median household income: Approx. $70,000
• Median home price: $375,000
• Unique aspects: Dallas has a robust job market, rich cultural scene, and, of course, is home to the Dallas Cowboys football team.

El Paso

With a cost of living 12% below the national average and a median home price well below the state and country median, El Paso is an affordable option that attracts first-time buyers, as well as military members and families. There’s a lot of natural space, but also a lot of heat in the summer. It’s a friendly community, with abundant arts and culture and a welcoming spirit.

• Population: Approx. 683,000
• Median household income: Approximately $60,000
• Median home price: $250,975
• Unique aspects: Low cost of living, thriving arts culture scenes, plentiful outdoor spaces, and a strong economy.

Fort Worth

Known for its rich cultural scene, western heritage, and hospitality, Fort Worth is the quintessential Texas city. It’s more affordable than many places in the state and has great educational opportunities, which attracts first-time buyers and families. It’s not all upside, however. Scorching summer heat and traffic can take its toll.

• Population: Approx. 1.05 million
• Median household income: $79,507
• Median home price: $329,895
• Unique aspects: A blend of modern amenities and Western charm, strong universities, community feel, and affordability.

Houston

One of the most populous cities in America, Houston has 14 major colleges and universities, one of the biggest rodeos in the world, a low cost of living, and housing prices well under the national and state median, Houston is a draw for young professionals, families, and seasoned homebuyers alike.

• Population: Approx. 2.4 million
• Median household income: $64,813
• Median home price: $321,500
• Unique aspects: Lively metro, strong healthcare, energy, and engineering sectors, and a diverse cultural scene.

San Antonio

San Antonio is popular with budget-minded families and young professionals who are attracted to the affordability and low median home price. It also boasts ample cultural, historic and outdoor attractions.

• Population: Approximately 1.6 million
• Median household income: $65,056
• Median home price: $250,000
• Unique aspects: Rich culture and history, strong economic sectors, thriving food scene.

What to know about the Texas home buying process

Buying a home in Texas is like buying in other states in the U.S., but it does have a few important differences and opportunities that allow it to stand out.

First-time home buyer programs

Texas offers a robust array of down payment and first-time homebuyer programs that can help with upfront costs and lower interest rates. It’s worth checking into whether you qualify for one of these or other state and federal programs. Here are a few popular Texas programs.

• First Time Home Buyer Grants: The nonprofit Texas State Affordable Housing Corporation (TSAHC) helps first-time homebuyers through down payment assistance. Depending on your qualifications, you could get a grant, which doesn’t need to be paid back, or a deferred forgivable second lien loan, which only must be repaid if you sell or refinance within three years. You’ll need to qualify and meet certain income requirements and have a credit score of at least 620 for this program.
• Homes for Heroes Program: Also administered through the TSAHC, this program offers home loans and down payment assistance for teachers, first responders, corrections officers, and veterans. Again, these are in the form of grants or deferred forgivable second lien loans.
• The Texas Homebuyer Program: A division of the Texas Department of Housing and Community Affairs (TDHCA), offers down payment assistance and access to real estate professionals that can help guide prospective homeowners through the homebuying process, including qualifying for a home loan.

No dual agency

Dual agency is when a single real estate agent represents both the buyer and seller in a transaction. The agents must divulge that they are doing this and it’s legal in many states, but it can present a conflict of interest. In Texas, dual agency is banned, so this is never a concern. Of course, it also means that if a real estate agent represents a seller in a home you want to buy, you’ll need to find a new real estate agent for the transaction.

Closing process

The closing process for buying a home is different than in Texas than many other states. For one, you are not required to have a real estate attorney at closing. Also, the state typically has a 30-day escrow period, which is shorter than many other states. Finally, Texas has no transfer tax, which means one less cost for buyers.

FAQ

Here are common questions people have about buying a home in Texas.

Is buying a home in Texas a good investment?

With its strong job growth, diverse community and housing options, and no state income tax, buying rather than renting in Texas can be a good investment. The important thing is to choose a location that fits your budget as well as your lifestyle.

Can I buy a house in Texas if I have bad credit?

Yes, there are programs available for homebuyers with less-than-ideal credit. FHA loans offer lower credit requirements, for instance. However, it’s important to understand that, typically, the lower your credit score the higher your interest rate.

How much are property taxes in Texas?

As of 2026, Texas had an average effective tax rate of 1.36% to 1.49%. However, property taxes vary by county, so different regions of Texas have different tax rates. There are also many exemptions to explore.

What salary do I need to afford a house in Texas?

How much you need to make to buy a home depends on where you buy, what you’ve saved for a down payment, and what you buy, among other things. You can use the mortgage calculator from Rocket Mortgage to estimate a mortgage payment on a house that you like.

How long does it take to buy a house in Texas?

From initial search to closing on a home can take many months. However, once your offer is accepted, the typical time to buy a home runs from 45 to 60 days. This can vary greatly depending on any complications arising from things like home inspections or loan qualification.

The bottom line: Find your home in the Lone Star State

With its size and diversity of locations and home prices, Texas has something to offer for many different buyers. Before buying a home in the Lone Star State, however, make sure you understand all the pros and cons of the decision. It’s also worth looking into the many homebuying assistance programs in the state.

If you’re ready to start looking for a home, you can reach out to Rocket Mortgage to learn more about qualifying for a loan.