Texas real estate market — prices, rental yield and trend
- Average price: $1,959 / m²
- Gross rental yield: 5.93%
- Net rental yield: 5.3%
- Transaction cost: 6.9%
- Price basis: regional average
Residential property in Texas averages $1,959 per square metre. That makes it the 45th most expensive of the 59 markets in the set.
What a buyer pays in Texas
The $1,959 figure is a regional average across all residential property types, which flattens a wide spread — the most sought-after areas run well above it, the rest of the region well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 6.9% of the price here. On a 100 m² apartment at the average price that is roughly $13,517 on top of the $195,900 purchase price. That is below the 9.1% median across the set, which shortens the time it takes for a purchase to break even.
What it earns
The typical home here lets for about $1,403 a month against a purchase price of $283,800, which is 5.9% gross before tax. Neither figure is quoted per square metre in this market, but both come from the same source, so the ratio between them holds. It ranks 25th of 55 markets by gross yield. Rental income is taxed at 10–30% — the rate is not a single number here. That is the difference between 4.2% and 5.3% net on the same property. The 5.3% net figure we publish uses 10.7%.
How the tax works. 10.66% under the IRC § 871(d) election, which treats the letting as effectively connected income taxed on a net basis at progressive rates (Form 1040-NR with W-8ECI); the lower part of the band (10–11%) is the spread across typical rent levels under that election. Without the election the default is a 30% withholding on the gross rent (§ 871(a)), the upper end of the band — three to four times the net tax, so virtually every real owner elects. Non-resident aliens get no standard deduction and the NIIT does not apply. Depreciation (27.5-year MACRS) is not included; with it the real burden is roughly 5–6%. Source: irs.gov. Texas levies no state personal income tax, so the federal figure is the whole income-tax burden — but Texas property tax is unusually high, commonly 1.5–2.5% of assessed value a year, a running cost that is not captured in any tax field here. Texas position per comptroller.texas.gov.
Who can buy in Texas
Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.
How this figure is built
The price figure for Texas is built from asking prices from listings. It was last refreshed on 2026-09-14. We rate our confidence in this market’s data medium: the series is usable, but thinner or less current than our best-covered markets. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.
Sources: Realtor.com via FRED, Texas median listing price per sqft (per-m2 level, STORED) · fred.stlouisfed.org · census.gov · prnewswire.com · zillow.com · redfin.com. Snapshot: 2026-09-14.
Latest Texas market analysis
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- The Fed Raised Rates to 3.75-4% and Its Own Projections Point to One More — 2026-09-17
- US 10-year Treasury yield touches 5% for the first time since 2023 as mortgage rates reach 6.76% — 2026-09-15
- US Existing-Home Sales Fell 2.0% in August as Supply Reached 4.9 Months — 2026-09-12
- US Home Price Growth Slowed to 1.4% in July, With 19 Big Metros Losing Momentum — 2026-09-09
- The US 30-Year Mortgage Rate Rose to 6.71%, 21 Basis Points Above Last September — 2026-09-04
- US Residential Construction Spending Fell 7.3% Over the Year to $859 Billion in July — 2026-09-03
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- US New-Home Sales Fell to 607,000 in July as Supply Reached 9.6 Months — 2026-08-26
- A US Family Now Needs 34% of Its Income for a New-Home Mortgage, the First Rise in Three Quarters — 2026-08-22
- Miami-Dade Sales Rose for an 11th Month as Houses and Condos Moved Apart — 2026-08-20
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