Texas job growth slows as housing inventory rises
Economic drivers
Texas's economic expansion in 2025 was supported by energy prices and defense spending. The Federal Reserve Bank of Dallas forecasts a 1.3% job increase for 2026. Construction, education and health services, and manufacturing showed gains in late 2025 and early 2026.
Housing market right now
The Texas housing market is normalizing with modest home price changes, often flat to low single-digit growth, anticipated for 2025-2026. Active inventory trended higher in 2025, with approximately 128,100 active listings at the start of 2026. Median home prices are projected to increase slightly to around $334,000 by December 2026.
Migration patterns
Texas led the U.S. in new arrivals in 2025, according to U-Haul's Growth Index, marking the seventh time in ten years. Major metros like Austin and San Antonio continue to attract residents, with growth spilling into surrounding counties such as Bexar, Comal, Hays, and Guadalupe.
Headwinds
Job growth in Texas decelerated in 2025, with major metros like Dallas, Houston, and San Antonio experiencing sluggish or declining employment. Restrictive immigration policies and a slowdown in the tech sector contributed to this moderation. Rising homeowners insurance costs also present a challenge, with median premiums increasing 60% from 2019 to 2024.
Key facts
- Texas employment growth was near zero in 2025, with job gains in Austin (0.9%) and Fort Worth (0.3%), and declines in San Antonio (-0.6%), Dallas (-0.2%), and Houston (-0.1%). (Federal Reserve Bank of Dallas, February 2026)
- The Texas economy expanded at an annual rate of 1.4% in the fourth quarter of 2025. (U.S. Bureau of Economic Analysis, April 2026)
- Texas committed a record $148 billion to transportation infrastructure in 2024, with this funding forming the backbone of the state's infrastructure pipeline through 2026. (Kitching & Co, October 2025)
- In 2025, Texas lawmakers passed seven bills aimed at improving housing affordability by reducing regulatory barriers and increasing housing supply. (Texas 2036, August 2025)
- Apple announced a major investment in its Houston campus in February 2026, including Mac mini production and expansion of AI server manufacturing. (WFAA, April 2026)