Texas Housing Boom: Investor Opportunities in 2025
Texas is growing at a record-breaking pace—are you positioned to grow with it?
Over the past few years, the Lone Star State has become a magnet for new residents, corporate relocations, and real estate investors. According to a recent report from the Texas A&M Real Estate Research Center, the state's post-pandemic population growth has fueled one of the largest housing booms in U.S. history.
In fact, between 2020 and 2024, Texas added more than 2.14 million people—surpassing the population of several entire states, including Nebraska, Idaho, and West Virginia. To meet this unprecedented demand, homebuilders responded by launching over 780,000 new single-family housing permits across the state, a 40.9% increase over the previous five-year period.
As this construction boom reshapes the Texas housing market, savvy real estate investors have a unique opportunity to build wealth by investing in high-demand metros, securing value-add properties, or even launching ground-up developments.
Why Is Texas’ Housing Market Booming?
The Texas housing boom didn’t happen by chance. It’s the result of multiple converging trends that make the state highly attractive to new residents and investors alike:
- Rapid net migration: More than 1.5 million people have moved to Texas from out of state or internationally since 2020.
- Strong job market: Major companies in tech, energy, and manufacturing are expanding in metros like Austin, Dallas, and Houston.
- Business-friendly environment: No state income tax, low regulations, and a lower cost of living compared to coastal cities.
- Remote work trends: Many workers moved to Texas for more space and affordability while keeping high-income remote jobs.
- Affordable housing—relatively: While prices have risen, many Texas metros are still significantly more affordable than cities in California, New York, or Washington.
Best Texas Markets for Real Estate Investment in 2025
Based on data from the Texas A&M Real Estate Research Center, here are a few of the top-performing metros where population growth and new construction are creating strong opportunities:
1. Sherman-Denison (North of DFW)
- Net Migration: 11.3% (highest in the state)
- Construction Growth: +59% annually since 2019
Why it matters: This booming small metro is ideal for fix-and-flip investors and new builds, with strong demand and rising prices.
2. Lubbock
- Net Migration: 3.4%
- Construction Growth: +44% annually
Why it matters: A vibrant college town with increasing housing demand and an expanding economy.
3. Austin
- Net Migration: 8.9%
- Construction Growth: 7.2%
Why it matters: Despite slower construction, demand remains sky-high—creating tight inventory and soaring home values.
4. Dallas-Fort Worth, Houston, San Antonio
- Net Migration: 6.3%–6.8%
- Construction Growth: 18%–22%
Why it matters: These major metros are seeing steady growth in both population and home values, with opportunities for both short-term and long-term investments.
5. College Station-Bryan
- An emerging market with steady migration and new development, fueled by its academic and healthcare sectors.
Investment Strategies for the Texas Housing Boom
Now that we’ve established where the growth is happening, here’s how investors can capitalize on Texas’ ongoing housing surge:
1. Fix and Flip in Underserved Boomtowns
With net migration outpacing new supply in many smaller cities, investors can find excellent returns by buying, renovating, and reselling single-family homes.
Ideal Markets: Sherman-Denison, College Station, Temple-Killeen
💡 Loan Solution: Use Longleaf Lending’s Fix and Flip Loans to fund your acquisition and renovation quickly, with competitive terms and fast closings.
2. Buy-and-Hold in High-Demand Rental Markets
Many investors are turning to long-term rental properties in metros where housing demand is expected to remain elevated for years. Rents are rising, and vacancy rates are low.
Ideal Markets: Austin, Houston, San Antonio
💡 Loan Solution: Our DSCR Rental Loans are perfect for this strategy—get qualified based on the property’s cash flow, not your personal income or job history.
3. Ground-Up Development in Growing Submarkets
Want to build from scratch? With Texas accounting for over 16% of all U.S. housing permits between 2020 and 2024, there’s plenty of momentum for ground-up residential development.
Ideal Markets: Lubbock, Sherman-Denison, Central Texas regions
💡 Loan Solution: Longleaf’s Construction Loans give you the capital and support to build new homes in expanding areas where inventory is tight and demand is growing.
4. Bridge Loans to Move Quickly in Competitive Markets
Deals in hot markets don’t last long. If you’re eyeing a time-sensitive purchase, need fast cash for a down payment, or are between projects, bridge financing can keep your momentum going.
💡 Loan Solution: Bridge Loans provide short-term capital for acquisitions, refis, or transitions between projects.
Why Act Now?
Here’s the bottom line: the Texas housing boom is far from over, but smart investors are already staking their claims in the state’s next great growth corridors. Population growth is expected to continue. Job opportunities are expanding. And while new construction is ramping up, it still takes years to complete projects—leaving short-term supply gaps that investors can fill profitably.
Don’t wait until prices climb higher or inventory disappears.
Partner With Longleaf Lending
At Longleaf Lending, we specialize in helping real estate investors move fast and fund smarter. Whether you're flipping in Lubbock, building in Sherman, or buying rentals in Austin, we offer the financing solutions to help you succeed.
✅ Fast Closings
✅ Flexible Terms
✅ Tailored Loan Programs
✅ Expert Investor Support
Reach out to us today or submit your loan application online.
✅ Flexible Terms
✅ Tailored Loan Programs
✅ Expert Investor Support
Reach out to us today or submit your loan application online.