As Texas grapples with economic headwinds, the housing market appears to be stabilizing, showing positive signs of recovery. Recent data from the Texas Real Estate Research Center indicates that the state’s housing inventory has decreased by 15% in the past year, leading to a surge in home prices.

In June 2026, the median home price in Texas reached $365,000, a notable increase from $330,000 a year prior. This price surge comes despite rising interest rates, which have reached an average of 6.5% for a 30-year fixed mortgage. Experts attribute the resilience of the market to a combination of limited supply and sustained demand in urban centers.

“While many are concerned about the broader economy, Texas continues to attract new residents and businesses,” said Dr. Jim Gaines, Chief Economist at the Texas Real Estate Research Center. “The fundamental demand for housing remains robust, particularly in major cities like Austin, Dallas, and Houston.”

Austin, which has been a focal point for tech industry growth, saw a staggering 20% increase in median home prices year-over-year, climbing to $468,000. The influx of tech workers and high-income earners has intensified competition for homes, leading to bidding wars and above-asking-price sales.

Meanwhile, Dallas has emerged as a hotspot for affordability, with median prices stabilizing around $380,000. The city's expanding job market and diverse economy are drawing in new residents, particularly young families seeking a more affordable lifestyle compared to Austin.

Real estate experts suggest that the tight inventory may persist in the coming months, especially in areas with strong job growth and quality of life amenities. “Developers are cautiously optimistic, but regulatory hurdles and rising construction costs remain significant challenges,” added Gaines.

In the commercial real estate sector, demand for office spaces is stabilizing as companies adjust to hybrid work models. Recent reports indicate that office occupancy rates in Dallas have improved to 70%, up from 50% in early 2025.

Overall, while uncertainties linger in the broader economy, Texas' housing market is showing resilience and adaptability, reinforcing the state's status as a top destination for homebuyers and investors alike.