Home Values in Texas
The median home value in Texas is $310,000. Austin saw extraordinary appreciation 2020-2022 (50-70%) followed by one of the nation's sharpest corrections in 2023. DFW, Houston, and San Antonio have been more stable, with moderate continued growth.
What Drives Home Values in Texas?
Several Texas-specific factors influence home values beyond national trends:
- Property tax burden: At 1.60% (avg. $4,660/year), Texas's taxes are above average, which suppresses affordability and can pressure values
- Assessment methodology: Texas has no state income tax, so property taxes fund the majority of local government and public school costs.
- Buyer exemptions: The Residential Homestead Exemption reduces appraised value by $100,000 for school district taxes (as of 2023 legislation).
- Financing limits: Conforming loan limit is $726,200 — Most Texas counties are at the standard conforming limit. No Texas counties currently qualify for high-cost conforming limits, though Austin-Round Rock values approach the threshold.
Closing Cost Consideration
When estimating net proceeds from a home sale, account for closing costs and transfer taxes. Sellers in Texas typically pay 6-8% of the sale price in total transaction costs. Texas has no state transfer tax, which is a significant advantage. However, title insurance rates in Texas are state-regulated and can be higher than in unregulated states. Survey fees are standard requirements in Texas.
Frequently Asked Questions
What is the average home value in Texas?
The median home value in Texas is $310,000. Austin saw extraordinary appreciation 2020-2022 (50-70%) followed by one of the nation's sharpest corrections in 2023. DFW, Houston, and San Antonio have been more stable, with moderate continued growth.
How do property taxes affect home values in Texas?
Texas's effective property tax rate is 1.60%, with an average annual bill of $4,660. This high tax burden is a headwind for Texas home values in some markets — high annual bills reduce what buyers can afford.
What is the conforming loan limit in Texas?
The conforming loan limit in Texas is $726,200. Most Texas counties are at the standard conforming limit. No Texas counties currently qualify for high-cost conforming limits, though Austin-Round Rock values approach the threshold. Buyers needing loans above this require jumbo financing.
How much are closing costs when selling a home in Texas?
Sellers typically pay 6-8% of sale price in total transaction costs. Texas has no state transfer tax, which is a significant advantage. However, title insurance rates in Texas are state-regulated and can be higher than in unregulated states. Survey fees are standard requirements in Texas. Buyers pay an additional $3,700 in closing costs.