Where to Buy Investment Properties in Texas in 2025
The Texas real estate market continues to offer promising opportunities for investors, even amidst broader economic uncertainties. As 2025 unfolds, Texas remains a top destination for savvy real estate investors looking for stability, growth, and resilience in a changing market. Among other resilient real estate markets across the United States, Texas stands out for savvy investors looking to allocate their resources wisely.
Texas has solidified its position as a top destination for real estate investors, driven by a booming population, rising housing demand, and a flourishing job market.
According to the U.S. Census Bureau, Texas led the nation in population growth between 2022 and 2023. Of the 1.6 million people added to the U.S. population in 2023, nearly 30%—approximately 480,000 new residents—chose to settle in Texas. This influx has significantly bolstered the state's real estate market, fueling demand across major metropolitan areas.
Cities like Dallas, Houston, San Antonio, and Austin rank among the top 10 nationwide for population increases, making them hotspots for real estate investment. These urban centers have become magnets for housing demand, supported by Texas's expanding population and vibrant economic landscape.
The state’s appeal lies in its thriving industries and unparalleled job opportunities. In 2024, Texas sits on the second top spot for the highest number of Fortune 500 company headquarters, with 55 corporations calling it home—representing over 10% of the Fortune 500 list.
The fastest-growing job sectors in Texas include technology, energy, healthcare, and manufacturing, creating numerous high-paying positions that are driving up real estate demand and property values.
Beyond the big cities, smaller Texas markets are also thriving. Eight cities in the state are among the top 20 fastest-growing in the U.S., offering excellent opportunities for investors seeking to tap into emerging markets.
With sustained population and job growth, Texas remains one of the most attractive states for real estate investments. Its diverse economy, favorable tax environment, and growing housing demand set the stage for long-term profitability.
To identify the best opportunities, we’ve analyzed data from trusted sources online like Redfin, Zillow, and public records, creating a comprehensive guide to the top places for real estate investment in Texas.
What makes the Texas real estate market appealing to investors?
The Lone Star State has consistently drawn attention for several compelling reasons. Here are some points to consider as to why Texas is still an enticing investment destination for real estate investors.
1. Economic Resilience
Texas boasts a robust and diverse economy that has shown remarkable resilience, even during periods of economic downturn. With flourishing industries spanning technology, energy, healthcare, and more, the state’s economy has been a driving force for job creation and population growth, fueling the demand for housing and commercial real estate.
2. Population Boom and Migration Trends
Over the past decade, Texas has experienced a substantial influx of residents from across the country, drawn by its flourishing job market, lower cost of living, and favorable business environment. This influx has resulted in a consistently growing population, creating a steady demand for housing and rental properties. Cities like Austin, Houston, Dallas, and San Antonio have been particularly attractive to newcomers, fostering a vibrant real estate market.
3. Affordability and Diverse Offerings
Compared to some other major U.S. metropolitan areas, Texas continues to offer relatively affordable housing options, attracting both first-time homebuyers and investors looking to capitalize on the market. Whether it’s single-family homes, multi-family homes, townhouses, or commercial properties, Texas provides a diverse range of real estate investment opportunities across different price points and property types.
4. Business-Friendly Environment
Texas is renowned for its pro-business environment, characterized by low taxes, minimal red tape, and favorable regulations. The absence of a state income tax and incentives for businesses, such as tax abatements and grants, make Texas an attractive destination for both startups and established corporations. This supportive climate fosters innovation and entrepreneurship, enabling companies to reinvest savings into growth and development.
5. Long-Term Growth Prospects
Experts and analysts forecast continued growth in Texas’s real estate market for the foreseeable future. This projection is supported by ongoing infrastructure development, urban revitalization projects, and the state’s ability to adapt and evolve in response to changing market dynamics.
Zillow recently released updated forecasts for Texas's major real estate markets, projecting that home prices will either remain stable or experience modest declines across the state's largest metropolitan areas.
Here are the projected price changes from July 2024 to July 2025:
Austin-Round Rock-Georgetown: -2.7%
Dallas-Fort Worth-Arlington: -0.3%
Houston-The Woodlands-Sugar Land: -1.1%
San Antonio-New Braunfels: -1.7%
These forecasts suggest a cooling in Texas’s housing market, providing potential opportunities for investors to secure properties at more favorable prices.
However, like any investment, due diligence and strategic planning are crucial when considering Texas real estate. Local market conditions, property location, potential for appreciation, and rental demand should all be thoroughly assessed before making investment decisions.
Whether you’re hunting for turnkey properties, fix-and-flips, or properties with BRRRR potential, this market update will help you decide where to look.
Top places to find investment properties in Texas
Here are some of the best places to buy a house in Texas, whether you’re looking for a quick flip or a long-term Texas investment property.
With the city’s population growing steadily, fueled by both domestic and international migration, housing demand remains strong. A new report by PwC and the Urban Land Institute highlights Houston as one of the top five real estate markets to watch in 2025 and beyond. The ranking is based on key factors such as population growth, economic performance, affordability, and real estate investment returns, solidifying Houston's position as a prime destination for investors.
Population Growth
Houston’s population is expected to grow at an impressive annual rate of 1.4% from 2024 to 2034, far outpacing the national average. This sustained growth is fueled by a combination of domestic migration, international immigration, and a thriving local economy, creating a continuous demand for housing and commercial real estate.
Real Estate Returns
Investors in Houston can look forward to steady returns:
Annualized 5-year returns: 1.3%
Annualized 10-year returns: 3.6%
These figures reflect the market's resilience and potential for long-term growth, making it an appealing choice for both short- and long-term investment strategies.
Economic Strength
Houston is a powerhouse of economic activity, boasting 26 Fortune 500 company headquarters, ranking it among the top cities nationwide for corporate presence. The city’s diverse economic base spans energy, healthcare, aerospace, and technology, offering stability and opportunities for job creation.
Houston’s blend of affordability, economic diversity, and strong population growth makes it a standout choice for real estate investment. With ongoing infrastructure development and a pro-business environment, the city is well-positioned to continue delivering robust returns for investors while accommodating its growing population.
Dallas–Fort Worth
The Dallas-Fort Worth area is set to lead the nation as the top real estate market for investment and development in the coming year, according to the latest Emerging Trends in Real Estate report, which draws insights from over 2,000 industry experts. This recognition is driven by its impressive post-pandemic recovery, robust economic performance, population growth, and high real estate investment returns, making it a standout market for investors seeking opportunity and stability.
Employment Growth
Since February 2020, total employment in D-FW has grown by 11.2%, ranking as the fourth-fastest growth among U.S. metros. It follows other Sunbelt markets such as Raleigh, N.C.; Charleston, S.C.; and Austin.
Economic Diversity
D-FW boasts a robust and diverse economy, housing 23 Fortune 500 companies, the fourth-highest concentration in the nation. This diversity provides resilience and stability, making it a magnet for businesses and investors alike.
High Investment Returns
D-FW stands out for its exceptional real estate performance, with annualized five-year returns of 7.9% and 10-year returns of 8.8%—the only metro in Texas to achieve such results, according to the report.
Relative Affordability
Despite its growth, D-FW remains relatively affordable. Moody’s Analytics reports that the area’s cost of doing business is 102% of the national average, while the cost of living is 113%, keeping it competitive compared to other major metros.
Housing Market Highlights
Median home prices in Dallas have risen nearly 38% since Q1 2020, reaching $382,000, comparable to the national median of just under $400,000, according to Redfin.
While these prices are approximately four to five times higher than the median household income in the region, D-FW remains "less unaffordable" than many other major housing markets, the report notes.
Dallas’s blend of population and employment growth, high investment returns, and strong corporate presence makes it the top choice for real estate investors heading into 2025. The city’s forward momentum, supported by ongoing infrastructure and development projects, ensures that it will remain a key player in the national real estate landscape.
San Antonio
San Antonio's housing market ranks as the fourth strongest in the U.S., according to the U.S. News Housing Market Index, driven by its population growth and economic resilience. In 2023, the city added more residents than any other U.S. city, bringing its population to 1.5 million. Known for affordability, economic opportunities, and a slower pace of life compared to Austin and Dallas, San Antonio continues to attract families and professionals seeking a better balance between career and quality of life.
However, market cooling is evident, with single-family homes selling 2.21% below asking price and staying on the market longer, while median home prices have dropped 4.4% year-over-year to $305,000. Multifamily units face high vacancy rates of 7.4%, compelling landlords to offer incentives like free rent.
Housing permits reflect shifting trends. In early 2024, single-family permits surged 36% year-over-year, reaching 6,916 by July, while multifamily permits plummeted 73% over the same period. This highlights growing demand for single-family homes as families move out of larger rental units.
Meanwhile, San Antonio’s housing supply is stabilizing, with 4.3 months of inventory as of August 2024, up nearly a month year-over-year. The city’s strong job market—anchored by sectors like healthcare, defense, and tech—supports economic stability, with unemployment at 4%, below the national average. Looking ahead, increased single-family housing supply and population growth are expected to sustain demand, while the multifamily sector gradually adjusts to oversupply.
Other Notable Investment Areas in Texas
McAllen, Texas
McAllen offers a stable and resilient real estate market, with prices projected to grow by 3.3% by early 2025. Its diversified economy—anchored by retail, healthcare, and education—supports housing demand. Median home prices are approximately $294,000, with homes often selling slightly below asking, making it a buyer’s market. Annual home price increases of 6.1% highlight McAllen’s potential for long-term capital appreciation, offering investors competitive entry points in a dynamic market.
Brownsville, Texas
Brownsville’s real estate market is projected to see steady growth, with home prices expected to rise by up to 3.4% by early 2025. According to Redfin, the median sale price of a home in Brownsville was $243,000 in October 2024, up 8.0% since last year. The median sale price per square foot in Brownsville is $133, down 2.9% since last year.
Its diverse neighborhoods, each offering unique opportunities for lifestyle and investment, make it an attractive option for homeowners and investors. Notable areas include Los Ebanos, known for its upscale, family-friendly environment near the city center; Paseo de la Resaca, a gated community offering luxury and scenic amenities; and Southmost, a vibrant, culturally rich neighborhood with promising investment potential.
El Paso, Texas
El Paso’s housing market offers strong investment potential with a balance of stability and competitiveness. Homes typically receive three offers on average and sell within 44 days, reflecting steady demand. As of October 2024, the median sale price was $250,000, a slight decrease of 0.02% year-over-year, while the median price per square foot rose 1.4% to $150.
The market leans slightly toward buyers, with opportunities to secure properties at competitive prices. The sale-to-list price ratio of 99.17% indicates that homes generally sell close to asking, and the city continues to see steady growth, making it an attractive option for real estate investors seeking both short-term and long-term returns.
Plano, Texas
Plano’s housing market remains active, with properties usually attracting two offers and selling within approximately 43 days. In October 2024, the median home price in Plano reached $530,000, marking a 1.9% increase compared to the previous year. Similarly, the median price per square foot climbed by 1.1%, reaching $222.
Plano’s appeal lies in its strong economy, top-rated schools, and desirable amenities, making it a sought-after location for buyers and investors alike. The combination of moderate price growth and a competitive yet manageable market environment positions Plano as an attractive option for those seeking long-term real estate opportunities.
Ready to invest in Texas real estate?
The Lone Star State is overflowing with real estate investment opportunities. With a low cost of living, a strong job market, and no income tax, people are flocking in and driving up property values.
But competition is fierce, and if you find an opportunity, you have to jump on it.
At Longleaf, we offer various types of real estate loans and can help fund your project in as little as two days. We are a Texas-based, direct lender and know these markets well.
For more information, check out our loan products or give us a call at 979-200-2823.
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