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McLennan County, TX

Waco

RANK #599 / 996 NAT  ·  #28 / 69 TX  ·  POP 261,090

1YR FORECAST: -0.5%

5YR OUTLOOK: +21%

McLennan County's housing market is projected to grow -0.5% over the next year, below the national average.

[01] Why McLennan County?

McLennan County, Texas, offers a blend of urban amenities and natural beauty, centrally located along the I-35 corridor, roughly halfway between Dallas-Fort Worth and Austin. The county seat, Waco, is home to Baylor University and the historic Waco Suspension Bridge. Outdoor enthusiasts can explore Cameron Park, one of Texas's largest municipal parks, featuring miles of trails along the Brazos and Bosque Rivers, or enjoy activities on Lake Waco, notable for being the largest lake entirely within a single city's municipal boundaries. The community offers a small-town feel with access to city conveniences.

Life in McLennan County appeals to families and young professionals, with many residents owning their homes. The area's economy is experiencing growth, with new investments in sectors such as manufacturing and technology. Educational opportunities are extensive, with 20 school districts, charter schools, and private schools, alongside institutions like Baylor University, McLennan Community College, and Texas State Technical College. Commute times average around 21.2 minutes, and rural transit options connect smaller communities to Waco for essential services.

[02] Market Snapshot

Housing Ratio
3.5x

Undervalued relative to economy

GDP Growth
+3.8%

Above national median

Home Prices
-1.0%

Prices declining

Climate & Terrain
0.8

Moderate climate & terrain

Price/Rent
12x

Strong rental yield

Housing looks undervalued at 3.5x — home prices are low relative to local economic output. The typical U.S. county is 4–6x.

[03] Top Employers

  1. 1
    Baylor University Education
    2,500+
  2. 2
    Ascension Providence Healthcare
  3. 3
    Waco ISD Education
    1,000+
  4. 4
    Baylor Scott & White Medical Center - Hillcrest Healthcare
  5. 5
    H-E-B Stores Retail
  6. 6
    City of Waco Government
  7. 7
    Walmart (all locations) Retail
  8. 8
    Midway ISD Education
  9. 9
    McLennan County Government
  10. 10
    Sanderson Farms, Inc. Manufacturing

Estimated local headcount ranges. Larger employers shown as floor + "+"; smaller employers show exact counts where reported.

[04] Home Value Growth vs National

McLennan County U.S. National

The Numbers

DEMOGRAPHICS
Population
261,090
+1.19% YoY
Median Household Income
$59,781
Median Home Value
$196,400
-0.99% 12mo
Median Rent
$1,048
Average Annual Pay
$60,387
+4.9% YoY
Employment
122,697
+1.5% YoY
Income-to-Home-Value
0.3044
More affordable than average
Migration Inflow
4.27%
of pop. from another state
Bachelor's Degree+
26.9%
of residents (national avg: 33%)

Market Activity

REAL ESTATE
Median Sale Price
$279,742
Days on Market
72
Slower market
Months of Supply
6.1
Buyer's market
Sale-to-List Ratio
96.4%
Negotiation room for buyers
Sold Above List
10.9%
Listings w/ Price Drops
26.1%
Building Permits (2024)
1,046
Single-Family Permits
744

Source: Redfin · Census BPS — Browse sales on Redfin →

[05] Crime & Safety

C+
SAFETY
GRADE
Homicide Rate
5.9
per 100K · nat avg 6.3
Firearm Fatalities
15.4
per 100K · nat avg 14.8
Injury Deaths
68.0
per 100K · nat avg 76.3
vs National Average
Near national avg
based on homicide rate

Source: CDC/NCHS vital statistics via County Health Rankings (2020–2022 avg). Rates per 100,000 population. Grade based on homicide rate relative to national average (~6.3). Learn more →

[06] Air Quality

B-
AIR QUALITY
GRADE
Median AQI (3yr)
46.3
Good
Good Air Days
60%
658 of 1,093 days
Unhealthy+ Days (3yr)
8
Sensitive groups affected
Primary Pollutant
PM2.5
Fine particulate matter
Yearly Trend
2021
39
2022
48
2023
52
Median AQI · lower is better

Source: EPA Air Quality System (2021–2023). Grade based on 3-year average median AQI. Learn about AQI →

[07] Capital Investment

$11,136M
TOTAL
PROJECT AMOUNT STATUS
Infrakey Data Center Campus
Infrakey
$10,000M Proposed
Prairie Hill Wind Farm
ENGIE
$300M Operating
Jaguar Battery Energy Storage System (BESS)
Perfect Power, LLC
$270M Under Construction
Markum Solar Farm
Scout Clean Energy (in partnership with Mortenson)
$209M Operating
Finch Storage Battery Project
Undisclosed
$201M Planned
Pepper Solar Power Plant
Sabanci Renewables
$156M Under Construction

Source: public records, news, corporate announcements. Amounts are estimates where noted.

[08] Score Breakdown

GDP Growth +3.8% 69 percentile
Population Growth +1.2% 76 percentile
Income Growth +11.3% 92 percentile
Vacancy Rate 1.1% 47 percentile
Home Price Change -1.0% 21 percentile
Rent Growth +1.4% 26 percentile
Price/Rent 12x 74 percentile

Bars show percentile rank among all 996 counties.

[09] Frequently Asked Questions

Is McLennan County, TX a good place to move to?

At 39/100, McLennan County faces headwinds that place it in the lower third of the 996 counties we track. Median income of $59,781 combined with job growth of +1.5% suggests the local economy is struggling to keep pace with national trends.

Is McLennan County affordable?

Housing in McLennan County is roughly in line with national affordability norms. The median home costs $196,400 and the income-to-home-value ratio sits at 0.30, with rents averaging $1,048/month. Not a bargain, but not a stretch for most local earners either.

Is McLennan County growing or shrinking?

McLennan County is growing on multiple fronts. Population is up +1.2% year-over-year while employers added jobs at a +1.5% clip. Home values shifted -1.0% in the past year.

Are people moving to McLennan County?

There's a moderate stream of newcomers. About 4.27% of residents moved from another state, which is above average and suggests McLennan County has appeal as a relocation destination — though it's not among the highest-inflow counties nationally.

[10] Similar Counties by Size & Score

Walker County, TX 39 Coryell County, TX 38 Webb County, TX 41 El Paso County, TX 36 Lubbock County, TX 43 Smith County, TX 35 York County, ME 39 Washington County, MN 40