Texas Housing Insight | April 2025

All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month-over-month, unless stated otherwise.

After a sluggish first quarter, Texas spring home sales declined more sharply in April, marking the weakest performance of the year to date. The weak sales reflect the compounding effects of growing economic uncertainty in the wake of tariffs and persistent affordability constraints from high and volatile mortgage financing costs, all of which weigh on consumer confidence and suppress buyer activity.  

The pullback comes despite rising inventory levels and a dip in mortgage rates during March, when the 30-year fixed rate dropped by roughly 25 basis points from January. With no signs of inventory stabilizing as new listings continue to surge, the supply-demand imbalance is widening as hesitant buyers sit on the sidelines, leaving homes sitting longer on the market and sellers lowering asking prices at record rates.   

First spotlighted in the March 2025 issue of Texas Housing Insight, entry-level homes are leading the inventory surge, highlighting how high mortgage rates and high home prices have significantly eroded affordability for first-time and moderate-income buyers. Unsurprisingly, April data reinforces this trend, with the entry-level segment experiencing the fastest inventory buildup under intensifying affordability pressures. The share of more affordable homes—those priced below $300,000—has dropped sharply since the pandemic housing boom, falling from a majority share to just under one-third of the market. 

New homes are steadily capturing a larger share of the Texas housing market as high mortgage rates continue to dampen resale activity. The expanding supply of smaller, more affordably priced new construction has bolstered the competitiveness and accessibility of new homes.¹  At the same time, builders—led by large national builders—are driving volume and growth by implementing affordability strategies (e.g., interest rate buydowns, closing costs assistance) to attract buyers, positioning it as a key driver in sustaining housing supply amid challenging market headwinds. 

April Home Sales Hit Another Skid  

Tariff tensions rattled global markets just as the spring homebuying season began, creating another setback for Texas home sales in April and extending the market’s sluggish start to the year.  

Texas recorded 29,870 closed home sales in April—including both new and existing homes—accounting for 8.5 percent of all U.S. home sales that month. Year-to-date (YTD), the state’s share stands slightly higher at 8.65 percent. 

• April home sales dropped 3.4 percent from last year, the weakest performance of the year, extending the 1.7 percent decline in 1Q home sales. 

• Nationally, seasonally unadjusted home sales were down 3.1 percent year-over-year (YoY), driven by declines in the South (4.7 percent) and the West (2.9 percent). Sales in the Northeast remained steady, while the Midwest saw a modest 1.2 percent dip.  

• The statewide median sales price in Texas was $338,000, edging down slightly from $340,000 a year earlier. 

• Nationally, the median home price rose to $414,000, up modestly from $406,800 a year ago. 

Active Inventory Set New Record To 14-Year High 

As noted in both the January and February Texas Housing Insight, inventory climbed to its highest level since 2016. In April, active inventory surged further, setting a new record and surpassing the previous peak reached in 2011. Slowing sales and continued influx of new listings have now pushed inventory availability to a 14-year high.   

In Figure 1: 

• As of April, Texas recorded 141,950 active home listings—a 31.4 percent YoY surge and an 8 percent increase from the previous month—pushing inventory to its highest level in 14 years. 

• This marks the most significant supply buildup since 2011, when the market was grappling with foreclosure-driven inventory build-up during the housing recession. 

• Compared to pre-pandemic levels, active listings are now 41 percent higher than in April 2019.   

• Fueling this rise, more than 60,000 new listings entered the market in April alone, up 15 percent from a year earlier. 

Entry-Level Homes Continue To Lead Inventory Surge 

Since the start of 2025, entry-level homes—those priced below $300,000—have experienced the fastest inventory growth, outpacing mid- and high-tier segments as affordability challenges continue to weigh on buyers with more modest means. Over the four months ending in April, these lower-priced homes have remained on the market an average of one week longer than their higher-priced counterparts, underscoring sharply weakened demand in the most price-sensitive segment. 

In Figure 2: 

• In April, the active inventory of entry-level homes increased 35.2 percent YoY, followed by 31 percent for homes listed between $300,000 and $500,000, 27.7 percent for homes priced between $500,000 and $750,000, and 28.4 percent for homes listed above $750,000. 

• (Not shown) entry-level homes made up 33.3 percent of all active listings in April, while the remaining 66.7 percent was distributed across the low mid-price range (36.7 percent), high mid-price range (16.4 percent), and top-tier segment (13.6 percent).    

• (Not shown) the share of entry-level homes has declined sharply since the pandemic housing boom. In 2019, homes under $300,000 accounted for 52.8 percent of the market, while higher-priced segments ($500,000 to $750,000 and above $750,000) accounted for just 9.8 percent and 8.2 percent, respectively.  

New Homes Make Up Growing Share Of Market

New homes are steadily capturing a larger share of the Texas housing market as elevated mortgage rates and affordability constraints continue to dampen resale activity. Buyers are increasingly drawn to builders’ affordability adjustment incentives—such as rate buydowns, closing cost assistance, and upgraded features—and the growing availability of more affordably priced new construction. Together, these factors are making new homes a more competitive and accessible option in today’s high-cost environment. 

In Figure 3: 

• In 2019 before the pandemic, the share of new home sales fluctuated seasonally between 15 and 20 percent of total home sales. 

• Spurred by historically low interest rates and the state’s Great Pandemic Migration, the share surged by 8.5 percentage points to 30 percent by December 2022. 

• Despite mounting affordability challenges and broader market headwinds, new homes have maintained a strong presence, accounting for 27.4 percent of total sales in 2024. 

• That momentum has continued into 2025, with new homes comprising 27.7 percent of all sales as of April, putting the segment on track to capture an even larger share this year. 

Market Balancing Act: Flat Prices And Surging Inventory  

According to the Texas Real Estate Center Home Price Index (Texas HPI), home price growth stalls under mounting supply pressure, with inventory reaching its highest level since 2011. In April, the YoY home price change marked the weakest gain since August 2023. Among Texas’ Big Four metros, home prices declined YoY in Austin (-2.1 percent), Dallas (-0.4 percent), and San Antonio (-1 percent), while Houston continues to post moderate annual gains (1.6 percent).  

In Figure 4: 

• April marked Austin’s 31st consecutive month of YoY home price declines dating back to November 2022. The first few months of 2025 have seen the pace of decline slightly accelerating, signaling continued weakness in the local housing market. 

• Dallas’ home prices weakened YoY in both March and April following a period of modest gains since August 2023, which was driven largely by rapid inventory growth, especially in the Dallas-Plano-Irving area. 

• In Houston, despite similar inventory buildup, prices have held steady and continue to experience modest growth.  

• San Antonio Home Price Index (HPI) tends to show greater month-to-month volatility due to sample size limitation. However, the three-month moving average suggests prices have remained relatively flat since February. 

Local Housing Market Indicators