Texas has emerged as the undisputed leader in America’s real estate landscape, claiming an unprecedented five spots in the top 10 best real estate markets for 2025. According to WalletHub’s comprehensive analysis of 300 U.S. cities, McKinney, Texas, has claimed the top spot in WalletHub’s 2025 rankings of the best real estate markets in the U.S., followed by Cary, North Carolina, and Irvine, California. This remarkable achievement underscores the Lone Star State’s growing influence in the national housing market and highlights why millions of Americans continue to migrate to Texas communities.
The Dominant Texas Five
The complete top 10 list reveals Texas’s extraordinary market strength, with McKinney topping the list with a total score of 72.33, and Texas cities Richardson, Frisco, Denton, and Allen all ranked in the top 10. The specific rankings place these Texas powerhouses strategically throughout the top tier:
1. McKinney, Texas – Leading the nation with its exceptional growth and housing options 5. Richardson, Texas – Offering established communities and strong economic fundamentals
6. Frisco, Texas – Combining rapid development with high-quality amenities 9. Denton, Texas – Providing affordable options with university town benefits 10. Allen, Texas – Rounding out the Texas contingent with family-friendly appeal
Five of the nation’s top ten real estate markets for 2025 are within the Dallas-Fort Worth metro, and a Collin County city sits at the top of the list. This concentration within the Dallas-Fort Worth metroplex demonstrates the region’s exceptional appeal to homebuyers and investors alike.
McKinney: The Nation’s Premier Real Estate Market
McKinney, TX, has the best real estate market in the U.S., in large part because of its recent growth. McKinney has the second-highest share of houses that were built between 2010 and 2023, at roughly 38%, which means that new buyers have a lot of options for houses that may not need major renovations or updates. This substantial inventory of newer homes addresses one of the most significant challenges facing many housing markets across the country – the availability of move-in-ready properties.
This is the third year in a row McKinney has been named the top real estate market, demonstrating consistent excellence rather than a temporary market fluctuation. This sustained leadership position reflects McKinney’s ability to maintain balanced growth while preserving the qualities that make it attractive to homebuyers.
The city’s success stems from multiple factors working in harmony. McKinney officially has the best real estate market in the country, according to WalletHub’s 2025 Best Real-Estate Markets report. The recognition highlights McKinney’s rapid growth, new housing options and strong job market — all factors making it an increasingly attractive place to live and invest in real estate.
The Methodology Behind the Rankings
The report compared 300 cities across 17 metrics tied to housing-market health and the broader economic environment. This comprehensive analysis ensures that the rankings reflect genuine market strength rather than isolated factors. The methodology considers crucial elements that matter most to homebuyers and investors, including affordability, market stability, economic growth potential, and overall livability.
The 17 metrics used in the evaluation encompass various aspects of real estate market health, from housing affordability and price appreciation trends to job growth and economic stability indicators. This holistic approach provides a realistic assessment of which markets offer the best opportunities for both homebuyers and investors.
Texas’s Competitive Advantages
The dominance of Texas cities in these rankings isn’t coincidental – it reflects several fundamental advantages that the state offers to residents and real estate investors. Texas maintains a business-friendly environment with no state income tax, which increases disposable income for residents and attracts businesses seeking cost advantages.
The state’s diverse economy, spanning technology, energy, healthcare, aerospace, and agriculture, provides stability that single-industry markets cannot match. This economic diversity ensures that even if one sector experiences challenges, others can maintain growth and employment stability.
Texas also benefits from continued population growth driven by domestic migration from other states. People relocating from higher-cost areas often find that their purchasing power increases significantly in Texas markets, driving sustained demand for housing across all price ranges.
North Carolina: Texas’s Only Real Competition
Besides Texas, North Carolina was the only other state with more than one city in the top 10. With Cary ranking second and Durham also making the list, North Carolina demonstrates that Research Triangle region offers compelling alternatives to Texas markets. However, with two cities compared to Texas’s five, North Carolina clearly trails the Lone Star State’s market dominance.
The success of North Carolina cities reflects similar factors to those driving Texas growth: strong job markets, reasonable cost of living compared to coastal areas, and growing populations. The Research Triangle’s concentration of universities and technology companies creates economic conditions that support sustained housing demand.
Regional Market Dynamics
North Texas dominated the list of best real estate markets in tthe U.S., with three of the top 10 markets being in Collin County. McKinney was named the No. 1 real estate market in the U.S., followed by Richardson at No. 5, Frisco at No. 6 and Allen at No. 10. Denton came in at No. 9, making this the most concentrated regional dominance in the rankings.
This concentration within North Texas reflects the region’s exceptional growth management and infrastructure development. The Dallas-Fort Worth metroplex has successfully absorbed massive population growth while maintaining livability and economic opportunity. Cities like McKinney, Frisco, and Allen have particularly excelled at planned development that creates desirable communities without the growing pains that often accompany rapid expansion.
Richardson represents a more established market within this group, offering mature neighborhoods and infrastructure while still maintaining growth potential. Denton provides a university town atmosphere with the economic benefits of proximity to the larger metroplex.
Economic Factors Driving Success
The success of these Texas markets reflects broader economic trends favoring the state. Major corporations continue relocating headquarters and operations to Texas, creating high-quality employment opportunities that support housing demand. The state’s regulatory environment and infrastructure investments have attracted businesses across multiple industries.
Energy sector strength, while cyclical, provides a foundation of high-paying jobs that support housing markets throughout Texas. The state’s diversification beyond traditional energy into renewable energy, technology, and aerospace creates multiple economic drivers that reduce dependence on any single industry.
Texas universities and research institutions contribute to workforce development and innovation economies that attract young professionals – a demographic crucial for sustained housing demand. Cities like Denton benefit directly from university presence, while others benefit from the educated workforce these institutions produce.
Investment Implications
The concentration of top-performing real estate markets in Texas creates significant implications for investors and developers. These rankings suggest that Texas markets offer superior risk-adjusted returns compared to most alternatives, attracting capital from institutional investors and individual buyers alike.
The sustained performance of these markets – particularly McKinney’s three consecutive years at the top – suggests that this success reflects fundamental strengths rather than speculative bubbles. This stability makes these markets attractive for long-term investment strategies.
However, this success also creates challenges. Increased attention and investment can drive up prices and reduce affordability for local residents. Cities must balance growth with livability to maintain the qualities that made them attractive initially.
Future Market Outlook
The dominance of Texas cities in 2025’s top real estate markets suggests continued strength for the foreseeable future. Population growth projections for Texas remain robust, with the state expected to add millions of residents over the next decade. This demographic pressure will continue supporting housing demand across all market segments.
Infrastructure investments throughout Texas, including transportation improvements and utility expansions, position these markets for continued growth. Cities that make the top 10 have generally demonstrated strong planning and development management, suggesting they’re prepared for sustained expansion.
Climate considerations may increasingly favor Texas markets over traditionally popular areas facing extreme weather challenges. While Texas faces its own climate risks, its diverse geography and infrastructure investments provide resilience advantages over many alternatives.
Conclusion
The remarkable achievement of five Texas cities claiming half of America’s top 10 real estate markets represents more than statistical success – it reflects the state’s emergence as the nation’s premier destination for homebuyers and real estate investors. Led by McKinney’s third consecutive year as America’s top market, these Texas cities demonstrate that sustained excellence in real estate markets requires combining economic opportunity, quality development, and strategic planning.
For homebuyers, these rankings provide valuable guidance about where opportunities exist in an increasingly challenging national housing market. For investors, they highlight markets with proven track records of balancing growth with stability. The concentration of success within North Texas particularly suggests that regional economic dynamics can create sustained competitive advantages that benefit entire metropolitan areas.
As America’s demographics continue shifting toward states offering economic opportunity and housing affordability, Texas’s real estate dominance appears positioned to continue. The success of McKinney, Richardson, Frisco, Denton, and Allen provides a roadmap for other communities seeking to create thriving real estate markets while maintaining the livability that attracts residents in the first place.
