Texas Housing Trends & Market Outlook — 2026
*Crossword and answers in the end of the article
Based on the 2026 Texas Real Estate Forecast from the Texas Real Estate Research Center at Texas A&M University
A Market Positioned for Gradual Growth
The Texas housing market is expected to strengthen modestly in 2026, according to the latest forecast from the Texas Real Estate Research Center at Texas A&M University.
After a broader slowdown in 2025, improving financing conditions and easing interest rates are projected to support housing activity across the state.
Rather than rapid growth or decline, the outlook points toward steady, balanced progress.
Home Sales Expected to Increase
Home sales across Texas are forecast to increase by approximately 2.5 percent in 2026, reaching an estimated 349,000 new and existing homes sold statewide.
The forecast notes that falling interest rates and pricing adjustments have helped offset the effects of higher inventory levels. As financing conditions improve, buyer participation is expected to increase gradually.
This suggests renewed activity while maintaining overall market stability.
Home Prices Projected to Rise Modestly
The statewide median home price is forecast to increase by approximately 1.3 percent, reaching around $334,000 in 2026.
This moderate price growth reflects improving affordability conditions alongside steady demand, rather than the rapid price increases seen during earlier market cycles.
Measured price growth is often considered a sign of a healthier, more sustainable housing environment.
Housing Construction Showing Signs of Recovery
After slowing in 2025, single-family housing permits are projected to increase by approximately 1 percent in 2026, totaling around 155,000 new housing units.
This increase suggests improving builder confidence and continued long-term demand for housing across Texas.
Housing construction plays an important role in maintaining balance between supply and demand.
Rural Land Market Remains Strong in Value
While rural land sales volume has declined slightly compared to previous years, pricing has continued to show strength.
Through the third quarter of 2025, rural land prices increased approximately 5.9 percent year-over-year, and the total number of acres sold increased modestly.
The statewide median rural land price is expected to increase slightly overall through 2026, though performance may vary by region.
This reflects continued long-term interest in rural and land investment opportunities.
What This Means for Buyers and Sellers in Fort Worth and Dallas
While the forecast reflects statewide trends, these patterns influence the Fort Worth and Dallas markets as well.
For buyers, easing interest rates and increased construction may create additional opportunities and flexibility.
For sellers, steady price growth and improving market activity suggest continued demand, particularly for well-prepared and strategically positioned homes.
For investors, gradual growth and stabilization often provide a more predictable environment for long-term decision-making.
A Balanced Outlook for 2026
The 2026 forecast does not point to dramatic shifts, but rather steady improvement across key areas of the Texas housing market.
Home sales are expected to increase.
Prices are projected to rise modestly.
Construction activity is beginning to recover.
Land values remain resilient.
Together, these indicators suggest a market environment defined by stability and gradual growth.
Source
Texas Real Estate Research Center at Texas A&M University
2026 Texas Real Estate Forecast
https://trerc.tamu.edu/article/2026-texas-real-estate-forecast/
Monthly CROSSWORD | FEB
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The person who helps you buy or sell a home - AGENT
The money you borrow to buy a home - MORTGAGE
The final step when you get the keys - CLOSING
The agreement you sign to buy a house - CONTRACT
You receive these when you buy a house - KEYS
Money paid upfront - DOWNPAYMENT
The value of your home - EQUITY
Home ownership document - DEED
