Learn what’s driving growth, rates, and new builds across Southeast Texas with insights from Education First FCU.
The Southeast Texas housing market exhibits several distinct affordability and landscape trends that shape its evolving market. From geographic distinctions to job landscape and new home trends, this market is displaying optimistic and continued growth.
According to KFDM.com, closed listings in the local region have increased 27% as of June 2025 compared to the previous period.1 Below, we look into some reasons behind the increase in demand, as well as overall housing trends experts are seeing in this region, to help you gain more understanding and knowledge as a potential home buyer.
To get started, we spoke with a real estate expert to help shed light on what he is seeing in this market. Kirby Smith is a well-established realtor based in Port Neches, Texas, and has been in the real estate industry for almost 50 years. When asked about the growth of Southeast Texas, he stated, “Our local market has its own rhythm. We don’t always see the dramatic ups and downs of the larger metro areas (Houston and outskirts), but we do see steady growth and strong demand.”
Notable counties in Southeast Texas experiencing population growth include Chambers County, Liberty County, and Orange County. One factor contributing to this growth is the expansion of the petrochemical industry, which is particularly relevant in the Southeast Texas region. According to a 2025 stat by TXOGA, Texas oil & gas-related jobs grew by 7,300 jobs through the first five months of this year.2 These petrochemical job opportunities result in a continuous demand for homes in the local market. Another factor for the growth is that counties such as Chambers and Orange offer more land opportunities, further supporting Smith’s mention below of increased sales in homes with more acreage.
The overall growth in the Southeast Texas real estate market is supported by the region's resilient economy, robust petrochemical job market, increased housing opportunities that offer more land, and a rise in new residents seeking a lower cost of living.
Regarding specific types of home trends in Southeast Texas, Smith also noted an increase in home sales that often come with more land. “Many buyers want flexible space for family, hobbies, or even multigenerational living.”
Additionally, Southeast Texas is seeing a spike in residents building homes. Home builders are actively working to address the demand, contributing to a moderate yet steady escalation in new construction. Earlier this year, Realtor.com reported that Texas is building more affordable homes than any other state in the country. Texas was the #1 state for new house permits in the 2024 total, accounting for 15% of all requests in the United States.3 This can be attributed to the state’s economic affordability in comparison to many other states.
With the geographical location of Southeast Texas, Smith states that buyers are also becoming increasingly aware of the need for specific insurance types for their homes. “With our proximity to the coast and waterways, buyers are asking more questions about flood zones and homeowners’ insurance. That’s a smart move—and something I always advise - find a great property insurance agent who knows and can advise on insurance rates!”
Mortgage rates continue to play a pivotal role in home sales, as rate fluctuations influence affordability long after the initial purchase. Though home rates have been higher since the pandemic lows of 2020, realtors are optimistic about our specific market. Smith stated, “Even with interest rates higher than a few years ago, Southeast Texas remains one of the most affordable regions in the state. You can still get more house and more land for your money here in this market.” Plus, Education First’s Rate Escape offer allows home buyers to drop their rate within the first 5 years of booking a Mortgage. This certainly offers more peace of mind in a fluctuating market.
We spoke with Jessica Wooten, Mortgage Manager at Education First, to learn about the specific trends she has observed lately. Wooten stated that there has been an increase in requests for knowledge, specifically regarding the complex nature of buying a home. Homebuyers in Southeast Texas want to better understand loan qualification requirements and what the numbers look like when it comes to down payments, closing costs, inspections, and other associated expenses. Check out our online mortgage calculators that can help you understand affordability, loan types, calculate mortgage payments, and more. Or, book an appointment with one of our mortgage lending experts online to get the inside scoop.
Here at Education First, we are excited to see the future of home and residential growth in Southeast Texas. The region boasts a strong economy, featuring a variety of cities that offer geographical advantages – such as land or access to the coast; community benefits – including small suburban neighborhoods with excellent school districts and tight-knit communities; or financial benefits – including affordable housing and high-paying career opportunities. Whether you are looking to relocate to Southeast Texas or are a resident considering a move from one city to another within this region, we encourage you to conduct diligent research. You will find that amazing home opportunities await you!
External sources
1 Key to the Market: Southeast Texas Housing Market Shifts to Favor Buyers.” KFDM, by ARC Southeast Texas / Aaron Barnhill, 25 July 2025, https://kfdm.com/news/arc-southeast-texas/key-to-the-market-southeast-texas-housing-market-shifts-to-favor-buyers. Accessed 10 Oct. 2025.
2 “Texas Is Building More Houses than Any Other U.S. State, According to Landmark Realtor.com® Report.” PR Newswire, 6 Feb. 2025, https://www.prnewswire.com/news-releases/texas-is-building-more-houses-than-any-other-us-state-according-to-landmark-realtorcom-report-302369315.html. Accessed 10 Oct. 2025.
3Texas Oil and Gas Upstream Jobs Grow by 2,200 in May.” Texas Oil & Gas Association, 24 June 2025, https://www.txoga.org/upstream-jobs-may-2025/. Accessed 10 Oct. 2025.