In Texas, where everything tends to be bigger—including housing opportunities—homeownership trends have really ebbed and flowed.
For many first-time homebuyers, today’s market is a different landscape than 20 years: both ripe with opportunity because of new builds, but harder to crack into given escalating prices.
To secure a foothold in the Lonestar State, buyers must understand the salary needed to afford a home and be realistic about where in the state they can actually find a decent abode.
What It Takes To Afford a Starter Home in Texas
As of 2024, the median cost of a starter home in Texas is $274,260. To afford this comfortably—with a 10% down payment and a 7% mortgage rate—buyers need to earn approximately $65,688 annually. (This calculation aligns with conventional guidance on how to qualify for a mortgage, keeping housing costs within 30% of income.)
Despite home prices increasing 31% over the past five years, Texas remains more attainable than many other states. For instance, compared to Arizona, where the salary needed to get a starter home is nearly $95,000 , Texas is still a contender for the most affordable state to live.
The Best and Toughest Cities for Starter Homes in Texas
Texas cities vary widely in affordability. Some urban centers stand out as strong options for those in search of starter homes:
- Houston – With a median price of $249,252, Houston offers ample inventory thanks to a steady stream of new construction over the years.
- Dallas – Slightly higher at $284,739, Dallas continues to attract young buyers with job growth and diverse neighborhoods.
- San Antonio – Although median prices here reach $339,950, many programs provide down payment assistance to ease affordability in San Antonio. Plus, it’s only a 2-hour drive from Austin, which is a big draw.
On the flip side, buyers face steep hurdles in cities like Austin, Frisco, and Plano. In Austin, for example, a median home now costs $525,000, requiring a six-figure income of $138,781 just to break in. For many, these popular areas are out of reach without substantial savings or financial backing.
Is Now a Good Time To Invest in a Starter Home in Texas?
Texas received an A- on the Realtor.com® state housing report card, a testament to its strong affordability and booming construction. The state accounted for 15.3% of all U.S. home building permits in 2024, indicating a healthy pipeline that should stabilize prices over time.
Given the potential for equity growth, especially over a five-year horizon, investing now could pay off significantly. Buyers who tap into mortgages for first-time homebuyers and learn about what is a starter home stand to benefit the most.
With smart planning, financial tools, and a solid understanding of local markets, Texas continues to offer a promising entry point into home ownership.

Carol McDaniel is a dedicated and results-driven professional with 5 years of experience and US News. Known for her strong problem-solving skills and collaborative mindset, Carol has built a reputation for delivering high-impact results across diverse teams and projects.
Throughout her career, she has demonstrated expertise in 2 core skills or areas, e.g., client relations and project coordination, and is passionate about continuous learning and meaningful contribution. Carol thrives in dynamic environments and consistently brings professionalism, adaptability, and a focus on growth to every role she takes on.