Why Texas Real Estate Remains Strong in a Changing Market

Interest rates are up, inventory is tight, and yet the Texas market keeps moving. Here is why.

Estimated Read Time: 6 minutes

Real estate headlines can be confusing. One week it sounds like the market is slowing down, and the next week homes are selling in days. The truth, especially in Texas, is more nuanced.

Yes, higher interest rates have changed how buyers think. Yes, inventory has tightened. But Texas continues to outperform much of the country for one main reason: people keep moving here.

Population Growth and Demand

According to the U.S. Census Bureau, Texas has added more than 470,000 new residents since 2022, leading the nation in population growth. Austin, Dallas-Fort Worth, San Antonio, and Houston remain magnets for jobs and affordability compared to coastal cities.

That steady migration keeps demand strong even as borrowing costs rise. More people means more housing needs across rentals, new builds, and resale homes.

For buyers, that means competition remains healthy. For sellers, it means pricing power still exists when homes are listed strategically.

Inventory and New Construction

Inventory levels across major Texas metros remain below the six-month mark that typically signals a balanced market. Austin sits near three months, Dallas around two and a half, and San Antonio just under four.

At the same time, new construction continues to expand, giving buyers more options and gradually easing pressure on resale inventory. Builders are offering incentives such as rate buydowns and closing-cost credits to keep sales moving.

This combination of limited supply and flexible builders is keeping the market active, stable, and resilient.

Long-Term Value Stability

Unlike markets driven by speculation, Texas benefits from consistent job creation and a diverse economy. Technology, healthcare, logistics, and manufacturing continue to attract both workers and companies.

That broad economic base helps protect property values and gives homeowners confidence that their investment will remain steady even as national conditions fluctuate.

Homeownership in Texas is still viewed as one of the most reliable paths to long-term financial growth.

What It Means for Buyers and Sellers

For buyers, preparation matters more than ever. Getting pre-approved, knowing your limits, and working with an agent who understands local data can make all the difference in timing and opportunity.

For sellers, realistic pricing and strong presentation are essential. Homes aligned with market value continue to sell quickly, especially when marketed with professional strategy and care.

While the pace of the market has shifted, opportunity remains for those who understand the trends and plan accordingly.

Final Thought

Texas real estate continues to show strength because of its fundamentals. Population growth, job diversity, and a healthy mix of new construction have created a market that moves with consistency rather than volatility.

While the national housing outlook may fluctuate, Texas continues to prove why it remains one of the most stable and opportunity-filled markets in the country.

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About Bluebonnet Real Estate

Bluebonnet Real Estate, proudly affiliated with Keller Williams Realty, helps Texans buy and sell homes with transparency and insight. Led by Realtor Berblan Munguia, Bluebonnet combines local market expertise with a client-first approach to make every step of the real estate process clear, confident, and rewarding.