A new housing analysis says Texas still has a few spots where first-time buyers are not completely priced out. Corpus Christi and San Antonio come in as the cheapest major metros for so-called starter homes, while Houston and Dallas stand out for inventory and square footage. Austin, meanwhile, remains one of the toughest big Texas markets for buyers trying to get a foot in the door, as reported by BestMoney.
What the National Data Shows
According to a report by BestMoney, only about 17.5% of homes in an average market qualify as starter homes, so fewer than one in five recent sales fit the lower-priced, smaller-footprint definition. The national analysis also finds that starter-home stock swings widely from metro to metro, and in some places the segment is shrinking as prices climb and the mix of homes for sale shifts.
Texas' Top Starter-Home Markets
As reported by MySA, BestMoney found that Corpus Christi has about 18.5% of recent sales qualifying as starter homes, with an average starter price near $228,000. In San Antonio, starter homes average $251,992 and account for roughly 18.4% of sales. The analysis also shows Dallas had the highest share of starter-home sales in the state at about 19.5%, and Houston sold more than 30,000 starter homes over the last three years while offering the largest average starter size at about 1,710 square feet. Austin stood out as the priciest and most constrained Texas market for first-time buyers, with starter homes averaging roughly $380,000 and only about 15.9% of recent sales qualifying.
How “Starter” Was Defined
BestMoney defines a starter home as a house or townhouse that costs no more than 80% of the local median sale price and falls at or below the market's 25th percentile in square footage. The site says it analyzed roughly 5.8 million Redfin sales records across more than 70 metro areas over the last three years to reach its conclusions, then ranked metros by both affordability and availability. (BestMoney)
Market Trends: A Mixed Picture
The topline numbers do not tell the whole story: Redfin reported that starter-home sales rose year over year in mid-2025 and that active listings climbed in many metros even as prices hit records. That combination points to more opportunity in some areas and ongoing pressure in others, which helps explain why BestMoney still sees pockets of relative relief for first-time buyers in Texas while national affordability remains strained.
What This Means for Buyers
For Texas first-time buyers, the takeaway is a clear tradeoff: Corpus Christi and San Antonio offer lower entry prices, Houston delivers more space and overall volume, and Austin is more likely to push budgets to the limit or send buyers farther from the city center. Local inventory and mortgage costs will ultimately decide whether a starter home is actually within reach, so comparing neighborhood-level listings with BestMoney's price-band view can help set realistic expectations. As reported by MySA.
