From Boom to Balance: What’s Next for the Texas Housing Market?
The Texas housing market has been on a rollercoaster ride over the last few years. Following the pandemic-era boom that saw surging demand, historically low interest rates, and rapid home price appreciation, 2024 marked a notable shift. As we move through 2025, the question on everyone’s mind is: what comes next?
At Citadel Valuation Group, we’re closely tracking the key trends shaping the housing landscape across Texas. Here’s what we’re seeing — and what it could mean for buyers, sellers, investors, and appraisers.
A Cooling Market, Not a Crash
After record-breaking highs in 2021 and 2022, many markets across Texas — including Austin, San Antonio, and Dallas — began to stabilize in 2023. Prices have cooled, inventory has slowly increased, and bidding wars have become less common. While headlines may talk of a slowdown, we’re observing a market that’s finding equilibrium after years of overheating.
Interest Rates Continue to Weigh In
The rise in mortgage rates has been one of the biggest influencers of recent market behavior. For many potential buyers, higher rates mean reduced purchasing power. As a result, more homeowners are choosing to stay put, leading to tight inventory conditions — especially for entry-level homes.
Still, savvy investors and long-term buyers continue to make strategic purchases, particularly in growing suburbs and secondary markets.
What Areas Are Still Growing?
While urban cores are experiencing modest corrections, markets like Laredo, McAllen, and parts of East Texas remain relatively resilient. Migration patterns, affordability, and economic development projects are keeping demand strong in many of these regions.
Additionally, the commercial and industrial sectors — particularly near transportation hubs — are driving interest in mixed-use and multi-family developments.
A Market for Professionals Who Know It Best
In a shifting environment, accurate valuation and localized market knowledge matter more than ever. Appraisers play a critical role in helping lenders, investors, and developers navigate uncertainty and make informed decisions.
At CVG, we pride ourselves on combining deep regional expertise with the latest tools in data analysis, mapping technology, and on-the-ground research. Our goal is to provide clear, unbiased valuations that reflect both today’s trends and tomorrow’s potential.
Looking Ahead: Balanced Doesn’t Mean Boring
While we may not see the explosive growth of recent years, Texas continues to be one of the most dynamic real estate markets in the U.S. As the market moves toward balance, opportunities will increasingly favor those who approach with insight, patience, and strategic foresight.
Whether you're a lender, builder, or homeowner — understanding your local market is the key to navigating what’s next.
For more insights, or to request a valuation in your area, get in touch with our team at Citadel Valuation Group.
We’re here to help you stay grounded, informed, and ready for whatever comes next.
