The Texas housing market is still heating up — just not as wild as it was during the pandemic. Even though mortgage rates have slowed things down a bit, home prices are still rising fast in many parts of the Lone Star State.
According to Zillow’s Home Value Index (September 2025), home prices in several Texas cities are still climbing faster than the national average, even as the typical U.S. home value sits around $364,891 — about the same as last year.
Texas Real Estate Still Going Strong
Texas continues to attract new residents from across the country, and that demand is keeping home prices on the rise. From small rural towns to fast-growing suburbs around Dallas, Houston, and Austin, property values have gone up across the board.
The data shows that smaller towns and emerging suburban areas are leading the charge in price growth, with some cities seeing home values jump by over 10% in just one year.
Top Texas Cities With the Fastest Home Price Growth
Here are a few standouts from Zillow’s latest rankings:
- Hico – Typical home value: $338,658 (+4.0% in one year)
- Midland – $326,242 (+4.2%)
- Christoval – $418,622 (+3.6%)
- Sabinal – $185,347 (+9.1%)
- Powderly – $275,234 (+6.1%)
- Bartonville (DFW area) – $1.35M (+1.3%)
- Old River-Winfree (Houston metro) – $280,912 (+7.0%)
- Beckville – $151,098 (+13.9%)
- El Indio – $211,563 (+10.1%)
- Graford – $649,174 (+3.2%)
These numbers show how diverse Texas real estate really is — from multimillion-dollar DFW suburbs to affordable towns seeing double-digit growth.
Why Prices Keep Rising
Even with higher mortgage rates, there’s still a short supply of affordable homes in Texas. People continue moving to the state for jobs, lifestyle, and lower taxes, keeping demand high and inventory tight.
Related: Dallas-Fort Worth Welcomes Nearly One-Third of All Texas Movers
Experts say price growth may slow slightly in 2026, but don’t expect big drops anytime soon. Texas remains one of the strongest and most resilient housing markets in the U.S.
🏡 Bottom Line:
If you’re looking to buy or invest, keep an eye on emerging towns and smaller suburbs. They’re growing fast — and still have room to rise.
Texas real estate isn’t cooling off yet — it’s just finding a more sustainable pace.