Real Estate in Texas: Market, Cities, and Investment Opportunities

Texas has become the testing ground for U.S. growth: the state with the highest population growth, a destination for corporate headquarters relocating from California, and an economy larger than that of France or Italy. For French-speaking real estate investors, it offers a rare combination: housing demand that is structurally higher than supply, entry-level prices still lower than those on the U.S. East Coast, and no state income tax.

This page provides a market analysis of Texas, not a listing of properties: why the Texas market is growing, the value of its four major metropolitan areas, current price trends, how to buy as a non-resident, what investment strategies are available to you, and why suburban real estate is the most direct way to capitalize on Texas’s demographic growth. It is part of our comprehensive guide toreal estate investing in the U.S.

Why the Texas Real Estate Market Attracts Investors

Four fundamental principles—all of which are measurable—form the basis of the Texas thesis.

First, the demographics. Texas gained approximately 391,000 residents between July 2024 and July 2025 (Census Bureau, 2025 Vintage estimates), representing a year-over-year increase of 1.2%—more than double the national average—bringing its population to 31.7 million, up 8.8% since 2020. Texas posted the highest absolute population growth in the country, driven by both internal migration (led by California, New York, and Illinois) and international migration: Texas ranked second in net immigration over the period. Given this population, the housing stock stands at around 12.85 million units (Census): the pace of construction, though one of the highest in the country, is struggling to keep up with population growth.

Next, the economy. Texas’s GDP grew by 6.8% on an annualized basis in the second quarter of 2025 (BEA), driven by an economy that is now highly diversified: energy, technology, logistics, healthcare, and aerospace. The unemployment rate hovers around 4.2% (BLS, end of 2025): Texas renters and homebuyers have jobs, and companies continue to relocate their headquarters and factories there, from Tesla to Texas Instruments (which has invested $30 billion in Sherman).

State Taxation. Texas does not levy any state income tax on individuals, a powerful draw for both households and businesses, offset by high property taxes, which we detail below: the Texas tax system is either all or nothing.

Finally, the pressure on the housing market. In addition to the national housing shortage of approximately 3.7 million units (Freddie Mac), there is documented local strain: more than half of Texas renters—about 2.1 million households—spend more than 30% of their income on housing (Harvard Joint Center for Housing Studies). Our analysis of the housing shortage in Texas details this imbalance, which fuels the entire real estate chain, from land to the finished home.

Key takeaways: The state has the highest absolute population growth in the country (+391,000 residents year-over-year), rapidly expanding GDP, no state income tax, and a documented housing shortage—Texas’s fundamentals are among the strongest in the United States. These strengths come at the cost of high property taxes and a rigorous local due diligence process.

Major Cities in Texas

The “Texas Triangle” (Dallas-Fort Worth in the north, Houston in the southeast, and San Antonio and Austin in the south-central region) accounts for the bulk of the population and economic growth: four Texas cities rank among the twelve most populous in the United States (Houston ~2.4 million residents, San Antonio ~1.55 million, Dallas ~1.33 million, Austin ~1 million), and Fort Worth surpassed the one-million mark in 2025. Four markets, four profiles.

Metropolis	Economic Profile	Price Range	Dynamic	For which type of investor
Austin	Tech, University, Capital	The highest in Texas	Normalization after overheating	Long-term appreciation, substantial budget
Dallas-Fort Worth	Finance, Corporate, Logistics	Slightly above the Texas average	Steady growth; very active northern suburbs	Balance Between Return and Appreciation
Houston	Energy, Health, Port	Affordable for its size	Ongoing economic diversification	Rental yield, purchase price
San Antonio	Military, Health, Tourism	The most accessible of the four	Steady growth, suburban expansion	Cash Flow and Suburban Real Estate

Austin

The Texas capital experienced the sharpest price appreciation in the country during the tech boom, followed by a period of normalization: median prices are significantly higher than in the rest of the state, and the rental market is stabilizing after a massive influx of new apartments. Austin remains a bet on long-term appreciation driven by the tech sector, with high entry prices pushing demand toward its suburbs (Round Rock, Pflugerville, San Marcos).

Dallas-Fort Worth

Texas’s largest metropolitan area and most diversified economy: finance, corporate headquarters, and logistics. Residential development is concentrated in the northern suburbs, which are experiencing continuous growth (Frisco, McKinney, Prosper, Celina). A deep and liquid market, though this comes at the cost of intense competition in the prime areas.

Houston

The fourth-largest city in the United States offers the best balance between market size and entry cost: a historically energy-focused economy that has become more diversified (the world’s leading medical hub, a major port), a large and varied housing stock, and neighborhoods with stark contrasts. Caution is advised regarding flood zones and insurance costs, which must be factored into any analysis. A local peculiarity: Houston does not have traditional municipal zoning, though this does not mean there are no rules—deed restrictions and homeowners’ association bylaws serve as zoning regulations and must be verified on a lot-by-lot basis.

San Antonio

The most accessible of the four major metropolitan areas, and one of the fastest-growing U.S. cities: a stable economy (military bases, healthcare, tourism), and sustained suburban expansion along the corridors toward Austin and to the east. It is also the heart of the real estate market we know best: demand for land there extends beyond the city limits to towns like Seguin and New Braunfels, which are among the most dynamic in the country.

Beyond the triangle, secondary markets are emerging: Waco along the I-35 corridor, Sherman, driven by the semiconductor industry, Abilene, known for its affordable real estate, and Brownsville in the Rio Grande Valley, fueled by the aerospace industry.

Key takeaways: Austin for (high) property values, Dallas-Fort Worth for market depth, Houston for value for money, and San Antonio for accessibility and suburban land: the four metropolitan areas of the Texas Triangle each serve different strategic purposes, and the secondary cities along the I-35 corridor benefit from their spillover effects.

Real Estate Prices in Texas and Trends

Current order of magnitude figures. The median price of a home in Texas hovers around $350,000 (Texas Real Estate Research Center, Texas A&M, late 2025), with significant variations: considerably higher in Austin, lower in San Antonio or in smaller cities. To put this in perspective: this is about half the price in California for comparable-sized homes, with relative affordability remaining one of the driving forces behind migration to Texas. On the rental side, the average monthly rent for a single-family home statewide is around $2,200, though there are again significant local variations.

The Trend. Following the post-pandemic surge and the subsequent slowdown in mortgage rates (around 6% for a 30-year fixed-rate mortgage in early 2026, according to Freddie Mac), the Texas market has entered a phase of normalization: moderate price growth, a gradual recovery in transaction volumes, and a return to a certain balance between sellers and buyers. Construction remains robust but falls short of demand, as evidenced by persistent upward pressure on rents; our analysis of U.S. real estate forecasts places Texas within the national cycle, and our guide to the cost of building a home in Texas details the economics of new construction.

These figures are sourced and dated estimates, not promises: each local market—and sometimes even each neighborhood—follows its own trajectory, and past performance is not indicative of future results.

Key takeaways: A median price of about $350,000, monthly home rents around $2,200, interest rates at ~6%, and a period of normalization following the market overheating—Texas still offers an accessible entry point for a market of this depth, provided you evaluate each city on its own merits.

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Buying Real Estate in Texas as a Nonresident

A French citizen can freely purchase property in Texas: no visa or special status is required, and the state imposes no general restrictions on foreign buyers of conventional real estate. The process consists of three steps.

Identification and Structure. The ITIN (Individual Taxpayer Identification Number) covers U.S. reporting requirements; assets are held in one’s own name or, frequently, through an LLC for limited liability and governance flexibility, with the tax treatment on the French side to be confirmed by an advisor. Our LLC guide details the criteria.

Financing. As is the case throughout the United States, obtaining a loan is difficult for non-residents: a minimum down payment of 25 to 30 percent, higher interest rates, and no local credit history. Buying with cash remains the most common approach for foreign investors.

Costs specific to Texas. Closing costs (2 to 5%) and insurance are added to the price, but the most notable expense is property tax: between 1.8% and 2.5% of the property’s appraised value per year in most areas—among the highest in the country. There is no single rate: the tax combines levies from the county, city, school district, and any special districts, as published by the Texas Comptroller; two neighboring properties may fall under different districts, so the actual rate must be verified based on the exact address. This is the trade-off for the absence of a state income tax, and it is the largest expense for a Texas rental investor: any return-on-investment calculation begins with it.

Key points to remember: Non-residents can purchase property freely; an ITIN is required for tax purposes; LLCs are commonly used for ownership; cash is the primary payment method due to limited access to credit; and, most importantly, a property tax of 1.8% to 2.5% per year shapes the entire economic equation: in Texas, net return is calculated after property taxes are deducted, never before.

How to Invest in Texas: Different Approaches

Residential Rentals

The traditional approach: buy a home in a growing suburb and rent it out, relying on a local property manager (8 to 10% of the rent). Observed gross returns generally range from 5 to 7% in major metropolitan areas, and are higher in certain secondary markets, before property taxes, insurance, and management fees: these are rough estimates, not guarantees. Texas law, which favors landlords (with expedited eviction procedures), and the depth of the rental market work in the investor’s favor; property taxes and remote property management work against them.

Commercial real estate (buildings, business premises, warehouses) benefits from Texas’s strategic location, but requires a much higher level of investment and expertise: this is a field for professional investors.

Suburban Land: Focusing on Growth Itself

That leaves the most direct approach: acquiring the land that Texas’s growth requires. Every new household, every relocated factory, and every home to be built starts with a plot of land: investing in suburban land means positioning yourself at the very beginning of the entire real estate chain—without tenants, without buildings, and without rental management. Profits come from the appreciation of the land (zoning, subdivision, utility connections) between the purchase and the resale to a builder or developer. Our analysis of why Texas is ideal for investing in land expands on this thesis; the following section shows how we put it into practice.

Key takeaway: Residential rental properties for recurring income (estimated gross returns of 5% to 7%, with property tax deducted afterward); commercial properties for professionals; and suburban land for directly capitalizing on population growth—three approaches, three profiles, and one common denominator: local selection is everything.

Texas Land and the Landquire Model

The logic can be summed up in one sentence: Texas’s population growth creates a structural demand for buildable land on the outskirts of metropolitan areas, and this demand is reflected in housing statistics (2.1 million rental households facing housing stress, a persistent supply shortage). Landquire operates precisely at this stage: acquiring undeveloped land at a purchase discount documented against comparable transactions, increasing its value through land rights (zoning, subdivision, access to utilities), and then reselling it to builders, developers, or private individuals.

Each transaction is structured within a dedicated entity (an LLC formed as a joint venture between the investors and Landquire), where the land serves as collateral in a virtually debt-free model, with a short cycle of 24 to 36 months and no rental management. Texas is one of our core markets: we operate there in the San Antonio suburbs and along the corridor toward Austin (Seguin, New Braunfels, Marion), in accessible secondary markets such as Abilene, and as far south as Brownsville, which is driven by the border and aerospace sectors. Since 2021, the team has managed more than 130 land projects involving over 1,000 land acquisitions across the United States, including several completed transactions in Texas: this track record from past transactions is documented on our page detailing our previously sold land projects, and past performance is not indicative of future results.

An ongoing transaction provides a concrete example of this model in this market: on the outskirts of San Antonio (a metropolitan area with a population of 1.7 million), Landquire acquired a 205-acre parcel of land on the outskirts of the city in early 2025, with plans to subdivide it into approximately 107 buildable lots; two buyers have expressed interest, one of whom is under contract. This transaction is described as an illustration of the land appreciation process: it is ongoing, and nothing stated above constitutes a guaranteed result or prejudges its outcome.

The figures presented in this video reflect observed past performance based on specific, non-representative cases and are not indicative of future results. Ongoing transactions are described in qualitative terms and do not constitute actual results. This type of investment is intended only for experienced investors.

Standard Disclaimers: Landquire real estate investments are direct acquisitions backed by tangible assets—neither SCPI nor FIA—intended for sophisticated investors only. They are illiquid during the life of each transaction, generate no interim income, and carry a risk of capital loss related to execution and local market conditions. This is one of the approaches described above, not a one-size-fits-all solution for the Texas market. The complete model is presented on our Landquire real estate investment page.

Key takeaway: Texas suburban land offers an opportunity to invest early in the housing value chain, where population growth translates into demand for land. Landquire implements this model on a short cycle (24 to 36 months), without significant debt or rental management, in its core markets on the outskirts of San Antonio: this is reserved for savvy investors and is illiquid during the investment period.

Risks and Precautions in the Texas Market

The analysis would be incomplete without its counterparts.

• Property tax: 1.8 to 2.5 percent per year—the largest expense—with assessments that rise as property values increase. It can be contested (through an annual appeal), but it never goes away.
• Climate and insurance: hurricanes along the coast (Houston, Corpus Christi), hail and tornadoes in the north, frost and flooding. Insurance premiums have risen sharply and must be factored into any simulation; certain flood-prone areas require specific coverage.
• Local market overheating: Austin has shown that a Texas market can overreact to the upside and then correct. The entry price determines performance.
• Remote management: reliance on the property manager and service providers for rental properties; selection of the operator for land holdings.
• Land due diligence: In Texas more than anywhere else, a property must be thoroughly analyzed before purchase: zoning and building rights (or deed restrictions), easements, legal access, flood risks, county taxes, and above all, water: utility connections, wells, hydrological studies, or on-site sewage systems, as applicable. A cheap piece of land with sky-high infrastructure costs isn’t an opportunity—it’s a problem.

The answer to these risks can be summed up in two words: selection and support. A market this vast rewards local analysis—the kind that is measured at the county and municipal levels, never based on the state average.

Key takeaways: High property taxes, rising weather insurance costs, local markets prone to overreacting, and rigorous real estate due diligence (zoning, access, water): The risks in Texas are well-identified and manageable, provided there is a thorough local analysis and partners with a proven track record.

FAQ: Real Estate in Texas

About the Author

Thibaut Guéant is the co-founder of LandQuire, a U.S. company specializing in high-yield real estate investment. A French entrepreneur who has been based in Miami for more than 10 years, he has raised more than $40 million since 2021 and led more than 130 real estate transactions across the United States. He is a licensed real estate agent in Florida.

Last updated: July 20, 2026.

For more information: Why Texas Is Ideal for Real Estate, The Housing Shortage in Texas, and Our Guide to Investing in Real Estate in the U.S.

The information on this page is provided for educational purposes only and does not constitute investment advice, tax advice, legal advice, or a personalized recommendation. Prices and market data are approximate figures sourced as of the date indicated. All investments involve the risk of capital loss. Past performance is not indicative of future results.

Are you interested in investing in Texas's growth through real estate?

Landquire assists French-speaking investors in real estate co-investment opportunities in Texas and other U.S. states, with a short investment cycle of 24 to 36 months and no rental management. Capitalize on the demand for land driven by Texas’s population growth.

• 100% managed investment, backed by real assets (the land serves as collateral)
• Short-term lease (24 to 36 months), without rental management
• A documented track record of completed projects, including several in Texas
• Off-market, available to experienced investors

View current land opportunities View projects that have already been sold Contact the Landquire team