These are the best places in Texas to invest in real estate in 2025.
Learn where to buy the most profitable investment properties, short term rentals and flip homes.
Based on moving trends, population growth and local market trends.
Let’s get started.
Here are best cities in Texas to invest in real estate:
Austin
Austin’s population surged by nearly 30% between 2010 and 2020, attracting a high volume of young professionals and tech workers from California, Illinois and surrounding states. Major tech employers like Apple, Tesla, and Oracle collectively added tens of thousands of new jobs.
This pushed housing demand and drove significant property appreciation, especially for airbnb investors. Median home prices hover above $450,000, especially in East Austin. The combination of the “Austin Tech Alliance” and absence of a state income tax attract a steady flow of entrepreneurs. Stabilizing the local job market further.
Transit expansions, such as Project Connect, promise to boost property values along emerging commuter areas. This combination of explosive tech growth, urban development incentives, and sustained migration trends sets Austin apart from other Sun Belt or Midwest metros.
Houston
Houston’s metro area population surpassed 7 million by 2020, making it one of the fastest-growing major cities in the nation. Its energy sector dominated by giants like ExxonMobil and Chevron continues to diversify into renewables.
While the Texas Medical Center, the largest in the world, adds thousands of high-paying healthcare jobs. Neighborhoods such as the East End and Near Northside offer rental yields between 6% and 8%, drawing both local and out-of-state investors.
Houston’s distinct advantage lies in its globally significant port and a business-friendly climate.
Dallas
Dallas is the nation’s fourth-largest metro area with a growth rate exceeding 20%. Tech companies continue to relocate from California. Additionally, the financial services sector continues growing, led by Bank of America, JPMorgan Chase, and Goldman Sachs, making Dallas a corporate magnet.
Median home prices around $350,000 continue to rise, yet investors still find neighborhoods like Oak Cliff and Vickery Meadow offering rental yields near 7%. Dallas has multiple major interstates and DFW International Airport, constantly growing local commerce and job mobility. The city’s sheer scale, economic diversity, and pro-business policies make Dallas a more stable bet for real estate returns than many rival Sun Belt metros.
San Antonio
San Antonio is the second-largest city in Texas at over 1.5 million residents. The local economy is dominated by military infrastructure, specifically the Joint Base San Antonio. Additionally, San Antonio is known for a rapidly expanding healthcare sector, led by the South Texas Medical Center.
In affordable neighborhoods like the West Side and Highland Hills, rental yields can hit 7–8%. Partly fueled by incoming service members and medical professionals. With its military stability, health industry expansion, and affordable investment properties, San Antonio is one of the best cities to invest in Texas real estate.
El Paso
El Paso has steady growth driven by its cross-border trade with Ciudad Juárez and the presence of Fort Bliss, one of the largest US Army bases. El Paso’s unique economy has boosted manufacturing and logistics, with a 15% increase in international trade jobs since 2015.
Rental yields often exceed 7% in neighborhoods like Lower Valley and Cielo Vista, thanks to continuous demand from military families and cross-border workers. The local government supports investors with low property taxes, relative to national averages.
El Paso’s strategic location for global trade, combined with military driven stability, offers a distinct competitive edge not found in most Midwest or other nearby Sun Belt cities.
Found the Best Place to Buy a Rental Property?
Secure up to 80% financing using projected rental income. Not based on tax returns or personal income.
- Up to 80% LTV
- Use future monthly rent to qualify
- No experience required
Arlington
Arlington, TX is perfectly nestled between Dallas and Fort Worth. Sports and entertainment venues like AT&T Stadium and Globe Life Field attract millions of visitors annually. Driving the hospitality and local service sectors.
The presence of the University of Texas at Arlington, enrolling over 45,000 students, provides a reliable tenant pool and spurs consistent demand for multifamily units. Consider neighborhoods such as East Arlington or Randol Mill Park for high rental yields.
Fort Worth
Fort Worth’s population grew over 24% between 2010 and 2020, surpassing 950,000 residents and establishing itself as one of the nation’s fastest-rising big cities. Aerospace and defense employers like Lockheed Martin, along with major corporate players in retail and finance, sustain its job creation.
Despite a median home price of around $320,000, property values have appreciated roughly 40% in the last five years, highlighting long-term equity potential. Rental yields of 6–7% are feasible in up-and-coming areas like Northside and Riverside, where fix and flip investments continue to revitalize older housing.
This rich blend of defense industry, moderate housing costs, and an energetic downtown secures Fort Worth’s advantage over other major cities in Texas.
Tyler
Tyler, known as the “Rose Capital of America,” has grown at a pace of nearly 9% from 2010 to 2020. Major healthcare employers like UT Health East Texas support thousands of jobs, driving steady housing demand and year-round occupancy.
Rental yields often hover around 7%, particularly in areas near downtown and around Tyler Junior College. Targeted incentives for medical and tech startups, fosters continued economic diversification. Tyler’s position along key East Texas transportation corridors offers logistical benefits not commonly found in similarly sized Midwest towns.
Waco
Waco’s Baylor University, employes over 5,000 faculty and staff, supports consistent rental demand, especially near the main campus. Tourism related to Magnolia Market and the city’s riverfront has boosted hospitality jobs by roughly 15% since 2016. Supporting both short-term rentals and long-term rental property opportunities.
Investor-friendly development incentives, particularly downtown, have re-energized the local real estate market. Waco’s blend of stability from local colleges, rising tourism, and relatively low entry costs sets it apart from other cities in Texas.
Related to Where to Invest in Texas
Now that you’ve learned where to invest in real estate in Texas, lets explore more options:
Is Texas a good place to invest in real estate?
Between 2010 and 2020, Texas added more than four million residents, one of the largest population increases in the country. Driving extraordinary demand for housing in urban and suburban markets.
Companies like Tesla in Austin, Toyota in Plano, and ExxonMobil in Houston have each expanded their workforce substantially, solidifying Texas’s reputation for corporate relocations and steady job creation. The Dallas-Fort Worth metro alone gained over one million residents in that period, attracting both businesses and families seeking lower living costs and housing prices compared to coastal states like Florida.
While Texas doesn’t have a personal state income tax, local governments often incentivize new development with abatements, reducing upfront costs for investors. Tech and medical sectors in cities like Austin and San Antonio have grown by over 25% since 2015, ensuring a diversified pool of well-paid tenants.
The state’s vast highway infrastructure and major ports, especially in Houston, support heavy trade and logistics. Adding resilience to both commercial and residential real estate markets. Texas stands out with a rare combination of high population growth, diverse industry sectors, relatively low housing costs, and attractive real estate investment opportunities.