Buying a house in Texas used to be the ultimate "get out of jail free" card for Californians and New Yorkers. You sell a tiny 800-square-foot condo in San Jose, move to the Dallas suburbs, and suddenly you're living like royalty in a five-bedroom mansion with a pool.
But honestly? The math has changed. If you’re looking at new houses in Texas right now, you’re walking into a market that looks nothing like the 2021 frenzy.
It’s weirder.
Prices in Austin are still licking their wounds from a multi-year slide, while parts of North Dallas and Houston are holding onto their gains like they’re made of gold. We're seeing a bizarre moment in history where, in some neighborhoods, a brand-new home is actually cheaper than a "used" one. Builders are so desperate to move inventory that they're basically bribing buyers with 4.99% interest rates while the rest of the world is stuck at 6.5%.
The Weird "Flip" of 2026: Why New Is Often Cheaper Than Old
You’d think a house that has never been lived in—one where the dishwasher still has the blue plastic on it—would cost way more than a house built in 1994.
Usually, that’s true. The "new home premium" is historically around 10% to 15%. But according to recent data from the National Association of Realtors, that gap has evaporated in many Texas metros. Builders like D.R. Horton and Lennar have spent the last year aggressively "right-sizing" their floor plans. They’re building 1,600-square-foot homes instead of 2,400-square-foot ones because that’s what people can actually afford.
✨ Don't miss: Am I Gay Buzzfeed Quizzes and the Quest for Identity Online
Meanwhile, owners of existing homes are "locked in." If you have a 3% mortgage from 2020, you aren't selling unless you absolutely have to. This has created a massive shortage of older homes, keeping their prices artificially high.
If you're hunting for new houses in Texas, look for "mortgage buydowns." Large national builders are using their own financing arms to offer permanent rate reductions. It’s a trick the average guy selling his house on Zillow can’t pull off.
Where the Shovels Are Hitting the Dirt
Texas isn't a monolith. Buying a new build in Austin is a completely different vibe than buying in San Antonio right now.
Austin: The Tech Hangover
Austin is the outlier. After peaking at a median of $559,000 in 2022, the market took a nosedive. We're still seeing price corrections here. However, builders are pivoting to the outskirts. Check out Liberty Hill or Jarrell. These spots are seeing high-density "starter" communities where you can still find something under $400,000, though you’ll be commuting a fair bit.
Dallas-Fort Worth: The Unstoppable Beast
DFW is currently the top new-home market in the entire U.S. Period. Places like Frisco and Celina are basically one giant construction site. Companies like Toll Brothers are leaning into the "master-planned" lifestyle here—think lagoons, private gyms, and hiking trails built into the neighborhood.
🔗 Read more: Easy recipes dinner for two: Why you are probably overcomplicating date night
Houston: The Affordability King
If you want space, Houston is still the place. Areas like Conroe and Fulshear are exploding. Because Houston doesn't have traditional zoning laws, builders can move fast. You can find "acreage" homes—new construction on large lots—in spots like Montgomery that would be triple the price in any other major metro.
The Tax Trap Nobody Mentions Until Closing
Texas has no state income tax. Great, right?
Well, the state has to get its money from somewhere. Texas has some of the highest property taxes in the country, often ranking in the top 10. For a new build, this gets tricky.
When you buy a brand-new house, your initial tax bill might be based only on the value of the vacant land. A year later, the "improvement" (your actual house) gets appraised. Your monthly mortgage payment could suddenly jump by $500 or $800 overnight once the tax office catches up.
Pro Tip: Always calculate your "all-in" payment using a 2.2% to 2.5% tax rate, regardless of what the builder’s flashy flyer says.
💡 You might also like: How is gum made? The sticky truth about what you are actually chewing
The good news? In late 2025, Texas voters approved a massive increase to the Homestead Exemption. For 2026, the general school district exemption is up to $140,000. That’s a huge chunk of your home’s value that the state can’t touch for school taxes. If you’re over 65, that break is even bigger.
The "Shift" in Quality and Energy
One thing you'll notice about new houses in Texas built in 2026 is the obsession with "envelope" sealing. Texas summers are getting brutal. Older homes with thin insulation are becoming money pits.
Newer builders like Meritage Homes or Highland Homes are now using spray-foam insulation and heat-pump water heaters as standard. In a 105-degree August, the difference between a $150 electric bill and a $450 one is the difference between liking your life and hating it.
Is This the Right Time to Jump In?
Honestly, it depends on your timeline. If you’re looking to "flip" a house in two years, Texas is risky right now. Price growth is expected to be modest—maybe 1.5% to 2% statewide through the end of 2026.
But if you’re looking for a place to live for a decade? You have more leverage today than you’ve had in five years. Builders are sitting on "quick move-in" inventory. They want those houses off their books before their fiscal year ends.
Don't just look at the list price. Ask for:
- Closing cost assistance (aim for 3% of the price).
- Design center credits (free quartz countertops, anyone?).
- The "long-term" rate buydown.
Actionable Next Steps for Texas Home Buyers:
- Check the MUD/PID: Many new Texas communities are in Municipal Utility Districts. These come with extra "hidden" taxes to pay for the neighborhood's pipes and roads. Always ask for the total tax rate, not just the county rate.
- Verify the School Zoning: Texas districts change boundaries constantly to keep up with new construction. The school the builder promises today might not be the one your kid actually attends next year. Check the district’s "long-range planning" maps.
- Get an Independent Inspection: Even on a brand-new house. Builders are rushing. Sometimes the HVAC isn't balanced or the attic insulation is missing a spot. A $500 inspection before you sign the final papers is the smartest money you'll ever spend.
- Shop the "Lender-Builder" Combo: Usually, it's better to get your own mortgage. But in 2026, builders are so tied to their internal lenders that they can offer deals (like the 4.99% rate) that no local bank can touch. Compare the "Total Loan Cost" over five years, not just the interest rate.
Texas is still the land of opportunity, but the "gold rush" is over. It's a "math" market now. If you do the homework on taxes and pick the right suburb, you can still find a deal that makes the rest of the country jealous.