Texas Housing Market FAQs for 2026

Written by Brandon Cornett | Published on July 5, 2026

The Texas housing market has fluctuated significantly in recent years, going from a major boom during the pandemic years to a prolonged cooling phase.

As a result, people have a lot of questions about the current state of the market.

On this page: You’ll find straight answers to most of those questions, based on the latest data available.

Current Housing Market Conditions in Texas

The Texas real estate market has cooled considerably over the past few years. In 2026, the Lone Star State is home to some of the strongest buyer’s markets in the country. This is largely due to a surge in new home construction, combined with a decline in demand from buyers. Home prices have dipped, as well.

Frequently Asked Questions: Summer 2026

Below, you’ll find answers to some of the most frequently asked questions about the Texas real estate market in 2026. We update this page quarterly to keep you up to speed.

Is the Texas housing market crashing (or going to crash)?

No, the Texas real estate market currently is not crashing, and it’s unlikely that such an event will happen in the near future. But Texas has definitely experienced a market correction and a cooling trend over the past few years.

A true housing market crash occurs when home values plummet rapidly across the board, usually driven by a surge of foreclosures, a sudden economic collapse, or a total breakdown in lending.

But that’s not what we’re seeing in Texas in 2026.

Like most of the country, Texas had skyrocketing home prices from 2020 to 2022. In the years after that, higher mortgage rates and home prices cooled the market and reduced buyer demand. This led to a decline in prices that is still going on today.

The best way to describe it: Texas has a cooler, slower, and more buyer-friendly real estate market with temporary price weakness, but no signs of a broader crash.

Are home prices dropping in Texas?

Texas home prices are essentially flat right now, fluctuating by just a percent or two in either direction depending on who is measuring.

An example of these conflicting reports:

  • In May 2026, Redfin reported that “home prices in Texas were up 0.9% compared to last year.”
  • A May 2026 report from the Texas Real Estate Research Center said prices dropped by 0.7% over the one-year reporting period.

This conflicting data is actually a sign of a stabilizing market. After the skyrocketing price gains of 2020 to 2022, the Texas housing market has shifted gears and is normalizing.

Instead of rapid growth or a sharp crash, we are seeing a flat market where prices fluctuate narrowly from month to month. See the graph below for details.

This graph shows the typical home price for the state of Texas going back eight years. But instead of focusing on the numbers, notice the overall trend and direction.

Notice how prices skyrocketed from 2020 to 2022, peaked at an all-time high in summer 2022, and then declined slightly in the years following.

As of summer 2026, we are likely entering the tail-end of this post-pandemic correction phase, with a price rebound possibly coming in early 2027 or thereafter.

But remember: Housing trends vary locally. For example, the Austin area is still experiencing steady declines, while many other Texas cities are stabilizing.

Is Texas a buyer’s market or seller’s market?

According to multiple reports, much of Texas could be considered a buyer’s market. In fact, Redfin recently ranked several Texas metros among the top ten strongest buyer’s markets in the country.

But this is one of those real estate trends that can vary from one city to the next, and sometimes from one neighborhood to the next within the same city.

Overall, however, the Texas housing market currently favors buyers more than sellers.

According to a June 2026 report from analysts at Redfin, Texas is currently home to some of the strongest buyer’s markets in the country. In some Texas metro areas, there are currently more than twice as many sellers in the market as buyers.

To quote the Redfin report:

“Housing supply also plays a role. Florida and Texas in particular saw a surge in homebuilding during the pandemic to meet demand, but many of these homes are now sitting unsold as buyers back off.”

The following Texas metros were ranked among the 10 strongest buyer’s markets in the country:

  • Austin: Ranked #3 nationwide, with sellers outnumbering buyers by 116%.
  • Houston: Ranked #4 nationwide, with sellers outnumbering buyers by 111%.
  • San Antonio: Ranked #5 nationwide, with sellers outnumbering buyers by 108%.
  • Dallas-Fort Worth: Ranked #7 nationwide, with sellers outnumbering buyers by 97%.

In these metro areas, the supply and demand dynamic is skewed in a way that gives buyers more negotiating leverage than in previous years. Buyers also have more inventory to choose from.

So in that regard, most of Texas can be considered a buyer’s market in 2026.

Is now a good time to buy a house in Texas?

For some buyers, now could be a good time to buy in Texas. Homes are taking longer to sell in 2026, so sellers might be more willing to negotiate over the sale price and terms.

The Texas real estate market has changed a lot over the past few years, and in several ways. For one thing, homes are sitting on the market for longer stretches before going under contract.

Here are the median “days on market” for real estate listings in Texas versus nationwide, according to data from Redfin. This metric shows how long it takes for a typical home to sell:

  • United States: Median DOM of 39 days
  • Texas: Median DOM of 68 days

Texas’s median DOM of 68 days shows that the market is currently moving at a slower pace than previous years.

Additionally, home prices in most Texas cities have already “self-corrected” from the unprecedented surge of a few years ago. So there’s less risk of additional price declines going forward, and a stronger chance of equity growth.

But higher housing costs continue to create obstacles for some buyers. Even though prices have come down a bit since the pandemic-era housing market boom, they’re still a lot higher than before the pandemic.

And today’s mortgage rates are more than double what they were back then.

But for those who can afford to make a purchase, now could be a good time to buy a home in Texas. Buyers have more options to choose from, and a bit more negotiating leverage.

Will Texas home prices drop during the rest of 2026?

Some Texas cities could experience additional price declines during the second half of 2026, especially in the Austin area. But home prices are currently stabilizing and could rebound by early 2027.

Based on current trends, we don’t expect to see much price growth for the rest of 2026. A reasonable forecast would be slight upward or downward movement, maybe half a percent one way or the other.

Central Texas is the outlier. The Austin-Round Rock area experienced a bigger surge in home prices from 2020 to 2022, so prices there have more room to fall. Central Texas could continue declining well into 2027, before finding a “bottom.”

But for the state of Texas as a whole, we expect a mostly flat price trend for the rest of 2026.

What is the Texas housing market forecast?

The general consensus forecast for the Texas housing market is that it will continue to normalize and rebalance from the overheated past, with buyers having a slight advantage for a while longer.

As mentioned, home prices in Texas probably won’t do much for the rest of this year. But they could resume a slow-but-steady rise in early 2027.

A lot depends on mortgage rates. Many home buyers are already limited by affordability challenges in 2026. So if mortgage rates rise going forward, it could reduce buyer demand and cool the market even more.

On the other hand, if mortgage rates decline, it could bring more buyers into the market, increase competition, and put upward pressure on home prices.

(For what it’s worth, most forecasters expect mortgage rates to continue hovering in the 6.4% to 6.5% range for the rest of this year. So a major drop in rates is not expected.)

But real estate trends are hard to predict with accuracy. And in a large and diverse housing market like Texas, supply and demand conditions will continue to evolve differently in different markets.

Stay Informed: Join Texas Housing Weekly

Want to keep up with the real estate market in 2026 and beyond?

There’s a newsletter for that, and it’s called Texas Housing Weekly.

Graphic showing the features of the Texas Housing Weekly newsletter

Our newsletter is the best and easiest way to keep up with the ever-evolving real estate landscape across the Lone Star State.

Five things to know about Texas Housing Weekly:

  • Published weekly, every Thursday at around 10:00 a.m. Eastern.
  • Edited by a Texas market analyst with 20 years of experience.
  • Covers statewide trends as well as the major metro areas.
  • Goes beyond the data to help you understand what it means.
  • Objective, unbiased, fact-based, and written in plain English.

Sign up for Texas Housing Weekly today, and you’ll always be informed.

Disclaimer: this report contains predictions and forecasts relating to the Texas real estate market, extending through 2026 and into 2027. Those views represent an educated guess and should be treated as such. The publisher makes no claims or assertions about future housing or economic trends.