If “Texas is a state of mind,” as the author John Steinbeck once famously saidMany people are thinking alike. New U.S. Census data shows that the nation’s five fastest-growing cities from July 1, 2024, to July 1, 2025, are all in the Lone Star State.
this increase is led Celina, a suburb north of Dallas, saw its population grow nearly 25% in the same year, reaching 64,427 residents. By comparison, the total US population grew by only 0.5%.
“The main reason for the additional upside and growth is almost entirely related to builders being able to get lower costs at lower rates in those cities,” said Damon Williamson, broker at The Agency Dallas. realtor.com.
Why are Dallas and Houston running the show?
All cities cited revolved around the super-hot Dallas and Houston metros. Four of the five cities—Selina, Princeton, Melissa, and Anna—are located around the Dallas-Fort Worth metroplex in North Texas, while the fifth, Fulshear, is near Houston., scoring Explosive growth rate of 15%-25%. Part of the attraction is the small-town feel of these cities, their proximity to a big city and its amenities.
“People want land, location, great schools, restaurants, sports and a hometown feel,” said Keller Williams North Country agent Georgina Heinen. CBS News.
However, because land is cheaper here than elsewhere, the potential for development has not diminished, despite the explosive growth in residents. “In 20 years, we’ll be as big or bigger than Frisco or Plano — Celina has land,” Hannon said. “It seems slow until it suddenly gets here.”
Long-term buy-and-hold is a good strategy in Texas
This is also a reason why investors would do well to consider long-term purchases and investments in some of these master-planned communities – the demand for housing is unlikely to end any time soon. In fact, with the strong job market and positivity Net migration from expensive northern and coastal citiesLooks like this will continue, though Slow pace compared to recent yearsPartly because of the immigration shutdown.
“Medium-sized cities found a ‘Goldilocks zone,’ where domestic and international migration, combined with new housing, helped offset the sluggish growth seen in smaller cities and larger metropolitan centers,” Matt Erickson, a statistician in the Census Bureau’s Population Division, said in a news release.
Dallas-Fort Worth: A Rental Property Investment Haven
According to the Urban Land Institute and PwC Emerging Trends in Real Estate ReportDFW is the No. 1 market to watch in 2026 and as such, a paradise for investors.
Andrew Alperstein, partner in PwC’s US real estate practice, told CNBC Make It At the end of last year:
“What’s really changed over the last few years is that change in financial services in Dallas has become more rapid. Companies are moving, and the population is growing, but it’s not all about financial services. Its economy is quite diverse, it is still relatively affordable, and there is easy access This. Dallas has a great story that will likely continue from a migration perspective and ongoing growth and expansion.
There are a large number of jobs that have flowed into the areas due to business-friendly tax laws to boost the economy and housing. The metroplex is projected to attract 100 corporate headquarters from 2018 to 2024, including AT&T, Southwest Airlines and Texas Instruments, according to a PwC and Urban Land Institute report.
numbers work
The numbers work in an important way for investors. The average home price in Fort Worth is approximately $300,000with an average fare of $2,300 or more for a new three-bedroom homeAccording to the district.
Homeowners Insurance Forum rapidly Note that northern Dallas-Fort Worth suburbs like McKinney, Frisco and Allen target stable, high-income, long-term renters.Whereas Secondary markets like Sherman and Dennison offer lower purchase prices and more cash flow Possibility.
Houston’s reputation as a cash flow leader is consistently championed, with rental yields between 6% and 8% – based around average home prices. $265,000 And the average rent for a two to three bedroom apartment or house $1,500-$2,000– Driven by a diverse economy, with jobs in a wide range of industries such as energy, health care, aerospace, technology and logistics.
However, investors also need to pay attention to property taxes and homeowners insurance, which may be higher depending on geographical location. said that, OB Homeowners Insurance Texas is ranked Most favorable market for high rents cost benefit in AmericaGiven factors such as lack of state income tax and high rent demand.
don’t forget san antonio
Although San Antonio is not one of the fastest-growing cities in the country, it is still mentioned favorably. rapidly As a solid rental investment hub, with above average home prices $250,00; A strong economy was established nearby medical center, a $2.5 billion airport expansion, and a military base.
fares are around $1,600-$1,700. Rents in nice neighborhoods like West San Antonio, Southtown, Tobin Hill and Harlandale are affordable, ranging from $200,000-$350,000.
A landlord-friendly state
rentready Texas named among most landlord-friendly states in America
“Texas is a gold mine for investors,” Gavin Yee, founder and CEO of Yijin Hardware, told the wealth management platform. “With no state income tax and flexible rental rules, it’s a great place to maximize profits. If you want to build your portfolio without the headaches, Texas is hard to beat.”
The major factors that placed Texas in the polls were:
- no rent control
- but no limits safety deposit
- Three days eviction notice (notice to vacate) and three to four weeks eviction process
- No-entry notices (landlords are not required to notify tenants that they intend to enter the apartment before doing so)
- flexible repair rules
final thoughts
Having owned a rental in several states, including New York, New Jersey, and Pennsylvania, I cannot overstate the benefits landlords get in Texas with a three-day notice to vacate and the subsequent three- to four-week eviction process. Evicting bad tenants, renovating and re-renting apartments ultimately drains the budget and ruins landlord experiences.
When a tenant knows they can game the system by calling legal aid and prolong the eviction process, it is mentally frustrating and financially crippling for a landlord. When that safety net isn’t present, tenants are more likely to pay on time. It’s just human nature, unfortunately – give an inch, take a mile.
Of course, this doesn’t apply to all tenants, and conscientious tenants are the ones you ultimately want in your rental.But The School of Hard Knocks has taught me and many other landlords that having state laws on your side is a huge deterrent to tenants who put you at the bottom of their list of priorities.
With that starting block in place, the rest of Texas’ metrics are ripe for investors – affordable, modern housing; fair rent; And a healthy job market.
I’m beginning to understand the Texas mindset.
