The quick answer: Doubtful. Present conditions in the Texas market are not conducive to the warning signs that usually precede a housing bubble burst. Here’s what the numbers say regarding the Lone Star State housing market direction.
Texas still has a strong housing market in its largest metropolitan areas. No market is insulated from dips, but a few top indicators point toward stability as opposed to a housing crash:
- Low levels of inventory in Dallas, Houston, San Antonio, and Austin
- Robust jobs rates statewide
- Restricted housing starts to maintain supply in check
- Lower-than-average foreclosure rates demonstrating homeowners’ financial solidity
Texas Home Market Guide for 2025
Will There Be a Housing Market Crash?
(53% above normal)
(January 2025)
Foreclosure Timeline
Cost of Living
Major Cities Price Changes
Inventory levels up 53% above normal. San Antonio, Austin, and Dallas identified as markets “at risk” for price declines in 2025.
Crash Risk Indicators
Texas leads foreclosure starts but timeline is short (116 days)
Stable employment across major metros
Significant increase but not crash-level oversupply
Cooling market with small price drops, not crash-level
2025 Outlook
- Continued market cooling expected
- Inventory levels to increase gradually
- Small price corrections, not crash-level drops
- Buyer opportunities may increase
- Regional variations between cities
