# Texas Housing Market Faces Sharp Correction

> Texas housing inventory glut threatens nationwide affordability as prices drop 9.2% since 2022 peak
- Title: Texas Housing Market Faces Sharp Correction · Newsweek
- Summary: Texas housing inventory glut threatens nationwide affordability as prices drop 9.2% since 2022 peak Texas' housing market correction could lower prices by…
- Keywords: texas, housing, inventory, prices, mortgage, affordability, realtor, parcl, sunbelt, construction, homebuyers, market
- Source: Newsweek — https://newsweek.com/why-texas-could-become-epicenter-americas-housing-downturn-12449414
- Published: 2026-09-17T13:53:05+00:00
- Read time: 1 min
- Topics: texas, housing, inventory, prices, mortgage, affordability, realtor, parcl, sunbelt, construction, homebuyers, market
## Texas housing glut
Texas added 2.1 million residents between 2020-2024, spurring record home construction.

> High mortgage rates and still-high home prices have dampened demand and allowed homes to stack up on the market
## Price correction underway
Texas home prices fell 9.2% since 2022 peak while inventory grew 76.2%.

> Since the peak, which we will define as August of 2022 for comparison, Texas has seen for-sale inventory grow by 76.2 percent and prices fall by 9.2 percent
## Supply-demand imbalance
Texas housing inventory now twice monthly sales with 48% of listings cut in price.

> Housing inventory on the state’s market is now roughly twice as high as monthly sales
## Texas vs Florida comparison
Texas added 50% more housing than Florida since 2020 with higher price pressure.

> Over the past five years, Texas added roughly 50 percent more housing than Florida
## Affordability challenges
Mortgage rates near 7% and high home prices hinder Texas homebuyers.

> Texas is dealing with a supply glut that was largely built for a very different demand and affordability environment
## Market correction timeline
Texas may see 25% inventory growth in midsize cities by summer 2025.

> Midland, Waco, and Tyler, where the number of homes for sale is up over 25 percent compared to last August
## Builder response
Texas homebuilding permits fell 7.4% from 2024 to 2025 with single-family permits down 11.7%.

> Total permits issued for new homes in Texas fell by 7.4 percent from 2024 to 2025
## National impact
Texas market slowdown could affect national housing statistics through 2025.

> Texas is large enough that a major slowdown would appear in the national statistics for things like home prices
## Market reset potential
Texas may clear inventory at lower prices by summer 2025 with healthier market trends.

> From there, the market can reset and resume healthier trends off a more normalized base
## Sunbelt context
Florida and Texas both experienced housing inventory growth but Texas has deeper correction risks.

> Texas has a larger supply problem. Over the past five years, Texas added roughly 50 percent more housing than Florida
## Key takeaway

Texas' housing market correction could lower prices by 9.2% but requires affordability improvements to clear inventory