Top 5 Best Real Estate Investment Markets in Texas

Luke Babich


Luke Babich

October 22nd, 2021
Updated October 22nd, 2021


Investing in Texas real estate is a great option opportunity. Texas laws are notoriously friendly to real estate investors and there are some beautiful areas to choose from. Still, Texas is huge, and knowing where to invest can be hard. Here are five top real estate investment markets in Texas to start with.

Top 5 Best Real Estate Investment Markets in Texas

Real estate investment is a great opportunity for those who want to scale their portfolios, establish residual income streams, and build their careers. However, it’s only beneficial if you do it properly.

There are a lot of mistakes you can make when it comes to real estate investing. One of the most common mistakes is choosing the wrong market.

When you’re looking at investing in a state that offers so many promising opportunities, it can be difficult to know where to start. This is particularly true in a state as large as Texas.

While working with a local real estate agent who has experience is the best way to ensure you’re making the right investment decision, doing some research into the markets you might be most interested in can help you get started on the right track.

To help narrow the options and give you some places to start your search, here are five of the most promising real estate investment markets in Texas.

The Overall Market in Texas

Before you can understand the data associated with the various real estate investment markets in Texas, it’s helpful to understand the market as a whole. By comparing the markets you’re looking to invest in with the overall statewide market, you can provide some context for your search and determine whether or not you think a particular area is a good fit.

Texas, as a whole, has a great real estate market. According to Zillow data, the current median home value is $197,300. Home values have risen about 7.9% in the last year and are expected to rise another 4.2%in the coming year.

Overall, it’s a cool market, which means it’s a buyer’s market. That’s great news for investors, especially since it seems the Texas market overall will be heating up in the next year or two.

That being said, here are some of the best markets for real estate investors in Texas.

Round Rock

Round Rock, Texas is in the Austin metro area and is a popular yet still suburban area that many people find attractive. The market here has experienced a month-over-month growth of 0.3% and has grown by 0.7% in the last year.

While incremental, the market here continues to grow in both value and popularity. Rental income sits at around $1,654 per month, and the breakeven horizon is three years away. These are positive numbers for anyone looking to invest in Round Rock real estate.

What’s more, home prices in this area have risen by about 5.9% in the last year, with the median home value sitting at around $279,700, which further supports the notion that sustained growth is likely in this region.

Furthermore, while you might not think “tech center” when you think of Round Rock, Dell, Emerson, and, a little farther away, Samsung all have campuses nearby. This has helped to grow the job market in the area, and it’s also drawn more young professionals to the region.

Outside of the fact that these employers exist in such close proximity, nearby Austin has experienced a growing population for years and is having trouble containing the people who have moved there. That means that newcomers are spilling into suburbs like Round Rock and will need homes.

This is a trend that can only mean more individuals will be moving to the area looking for housing, which is very promising, indeed, for investors.

Sugar Land

Sugar Land is located in the Houston metro area. Currently, the median home value is about $305,900, and home values have risen about 2.5% in the last year. This area typically sees a rental income of around $1,946 per month, which is comfortably above the national average of $1,474.

Once a sleepy community, Sugar Land has started to blossom into a center of employment, technology, and entertainment. They recently built a large stadium that holds over 6,500 people, and large corporations such as UnitedHealthcare, Noble Drilling Services, and Bechtel EO call Sugar Land home.

In addition, oil and gas firms are attracted to Sugar Land like moths to a flame. Nalco Champion recently invested $45 million in a new 133,000-square-foot facility that has been used for research and development, among other things. Corporate leaders stated that they looked at other metro areas, such as Houston, before settling on Sugar Land, which is further indication that the investment opportunities in the region are promising.

Taking into consideration the corporate development, increasing popularity, and the higher-than-average rental income expected in this area, Sugar Land is a great place to invest.


If everything in real estate boils down to location, then Seguin, Texas has everything to offer. Just 30 minutes away from San Antonio and 45 minutes away from Austin, Seguin is an epicenter of promise for real estate investors.

The current rent sits at around $1,398 a month and has experienced a 3.9% increase in home values in the last year alone.

But what raises the eyebrows of most observant investors is the sheer volume of big-name companies that have chosen to call Seguin home.

Among the myriad of companies that have headquartered or established campuses in Seguin are Caterpillar, Cavco Industries, Alamo Industrial, Continental Automotive Systems, and Tyson Foods. As you can see, these companies span a number of various and diverse industries, and with them, they bring employment opportunities and commerce.

Seguin has also been investing in its local offerings, such as building a brand new state-of-the-art medical center and expanding housing programs to host the newcomers who have chosen Seguin due to the promising job market.

As every investor knows, these newcomers need a place to live, and with the breakeven horizon being two years away, most of them will choose to rent. This is a great opportunity for real estate investors looking to claim their slice of the Texas real estate investment market.

New Braunfels

If you’ve never heard of New Braunfels, Texas, you’re not alone. It’s a small but growing community, and while it’s a hidden gem, that works as an advantage for real estate investors.

Many people are looking to find homes away from the hustle and bustle of large cities. However, even some of the suburbs in Texas have become crowded and feel more urban than they do suburban.

Places like New Braunfels offer an escape from the craziness of city life while still providing job opportunities, a growing real estate market, and economic stability. The median home value here is $262,500, with rental income sitting at around $1,553.

Home values have risen by 5.2% in the last year and are expected to continue rising this coming year.

One challenge that investors might face in this market is finding properties under $200,000. However, purchasing in Guadalupe County, which is just a bit farther over but still in the New Braunfels area, allows you to enjoy great pricing while still being in a desirable (and rapidly developing) area.


Odessa, Texas is an interesting location, but it’s worth paying attention to if you understand how the oil and real estate markets influence each other.

Home values in Odessa have risen 18.3% in just the last year alone, sparked in part by the oil boom that happened in Texas. These values, though, are predicted to rise another 7.4% in the coming year.

Right now, the median home value in Odessa is $175,500, and given that 13.9% of listings have a price cut associated with them, it means that investors can get a relatively good buy on an investment property. What’s more, foreclosures in the area are looking to rise given that the current rate of delinquent mortgages, which is the first step in the foreclosure cycle, is over double the national average.

Odessa, like many locations in Texas, is a real estate market that tends to rise and fall with the oil market. While the oil industry is on shaky ground right now, the reduced output isn’t necessarily something to worry about as an investor. In fact, since oil tends to rise and fall just like any other market, getting into a real estate market that relies so heavily on oil during a down season might mean that you’ll be able to enjoy high appreciation rates when it kicks back up.

Real estate markets tend to follow oil markets by about a year, and some investors choose to wait until they see the oil markets rise before investing in areas like Odessa. That makes sense, given how unpredictable the oil market can be, especially in light of recent legislative actions at the federal level.

However, Odessa is a very hot market that doesn’t show any signs of slowing down, and it presents a great opportunity for investors.

Next Steps

Whenever you’re considering investing in real estate, it’s imperative that you consult with an experienced, local real estate agent who can help guide you through the process. Only a local agent with experience in the market of your choice can provide you with the specific market information you need in order to make the right decision.

A real estate agent can help you through both the buying, flipping (or renting), and selling portions of any real estate investment. They can provide insight on timing the market, making competitive offers, and getting the most out of your investment properties.

Clever Partner Agents can help save you thousands on commission, too, since all of our Partner Agents work for a flat fee. Our Partner Agents are verified top performers in their local markets, and they can provide the expertise you need to maximize your profits and minimize your exposure.

Fill out our online form today and we’ll connect you with a top-rated real estate agent in your area. Whether you’re investing in your first rental property or multiple investment properties, they’ll provide you with a no-obligation consultation and help you get started on the right path to investing in Texas real estate.

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