Buying new construction in Texas: Houston, Dallas, Austin and San Antonio (2026)

Updated October 19, 2026. 5 min read.

Houston and Dallas–Fort Worth were the two U.S. metros that gained the most people in 2025, and Houston is where the most single-family homes are permitted. Texas has no income tax: local services are paid for with property tax, which adds up the county, city, school and districts such as MUDs. Since November 2025, homestead takes $140,000 off the value for school taxes. Before signing for a new home, ask for the MUD, PID and HOA notices, and check the flood risk yourself, because the builder doesn't have to tell you.

Why Texas

According to the Census, Houston (126,720 more people) and Dallas–Fort Worth (123,557 more) were the two metros that grew the most in the country between 2024 and 2025. Austin was 6th and San Antonio 9th. As in Florida, growth is mostly on the edges: counties such as Collin, Montgomery, Fort Bend and Williamson.

It's also where the most building happens. In 2025, 46,219 single-family homes were permitted in the Houston area, 1st in the country, and 39,790 in Dallas–Fort Worth, 2nd.

The Texas Constitution prohibits an income tax on individuals. In exchange, local services are paid for mainly through property tax.

Property tax and homestead

Several bodies tax at once. There's no state property tax: the county, the city, the school district and special districts such as MUDs and PIDs levy it. To know what you'll pay, add up all the rates at the county appraisal district.
The school homestead exemption is $140,000 since November 4, 2025, when voters approved the increase, plus $60,000 more if you're 65 or older or have a disability. It only reduces school taxes; the county, city and districts can grant their own exemption, up to 20%.
On a new home you can get it the same year, if the builder didn't have it. You apply at the appraisal district; if you bought after January 1, you have up to a year from the purchase.
The cap kicks in the second year. With homestead, the appraised value can't rise more than 10% a year, but the cap starts the following year. In the first full year, the finished home is appraised at market value, and the year before it may have been taxed as land only.

The notices you must get before you sign

The MUD. Many new subdivisions sit in a district that uses bonds to pay for water, sewer and drainage, and levies its own tax. Since 2023 the notice is a single standard form, with the current or projected rate, the approved bonds and whether the city can annex the district. It warns that the district may impose an unlimited tax rate to pay the bonds and that those facilities aren't included in your home's price. If you don't get it before signing, you can terminate the contract.
The PID (public improvement district). Its assessment can be paid in full or in yearly installments, and if you don't pay it you could lose the home. If you didn't get the notice before signing, you have 7 days from receiving it to terminate the contract.
The HOA. The notice that you'll be a mandatory member and pay its dues. Here too, you get 7 days if you didn't receive it beforehand.

Flood risk: the builder doesn't have to tell you

The seller's disclosure form, which says whether the home is in a floodplain, doesn't apply to a new home no one has lived in. Look it up yourself on the FEMA flood map before you sign, and remember a federal flood policy takes 30 days to start.

In Houston, Harris County and FEMA are preparing new maps with heavier rainfall and urban flooding that was never mapped before. Today they're drafts: check both the current FEMA map, which is what counts for your lender and insurer, and the draft.
On the coast (Brazoria, Galveston or Chambers), your wind coverage may have to come from TWIA, which requires a certificate that the home was built to code. Ask the builder for it before closing.

Title insurance and the contract

Title insurance rates are set by the Texas Department of Insurance: every company charges the same. Rates dropped 6.2% on March 1, 2026.
The contract. The Texas Real Estate Commission prepared new versions of its new-home contracts in 2026, the forms licensed agents must use. Many builders sell with their own contract: read it with your agent or attorney.
Inspections. Outside city limits, in counties that adopted it, the builder hires three inspections: before the concrete is poured, before the walls are closed and at completion. Even if no one requires it, hire your own licensed inspector at those stages.
If a defect shows up, you must notify the builder by certified mail 60 days before suing.
Since September 2025, a state law restricts property purchases by people and companies from certain designated countries. It doesn't apply to citizens or permanent residents, and anyone lawfully in the U.S. can buy their primary home.

Buying in Texas with Instadigs

Digger AI Agent finds new construction in Houston, Dallas, Austin, San Antonio or any town you name, checks who's building, what they've delivered and whether there are delays, and runs the numbers with yours. If you want, it represents you in a Move: our licensed Texas broker, the Broker of Record, handles the purchase, and 100% of the Instadigs commission comes back to you as a credit at closing. It has to appear on the closing disclosure and, if you have a mortgage, your lender has to accept it (how it works and what the law says).

Frequently asked questions

Does Texas have an income tax?

No. The Texas Constitution prohibits it. Local services are paid for mainly with property tax, which adds up the county, city, school and special districts.

How much does homestead save in Texas in 2026?

$140,000 off your home's value for school taxes, plus $60,000 more if you're 65 or older or have a disability. Each county, city or district can add up to 20%. You apply at the county appraisal district.

What is a MUD and why does it matter?

A district that uses bonds to pay for the neighborhood's water, sewer and drainage and levies its own tax on top of the others. The law requires a notice with the rate before you sign; if you don't get it, you can terminate the contract.

Does the builder have to tell me if the home is in a floodplain?

Not through the seller's disclosure: the law exempts new homes no one has lived in. Check the FEMA flood map yourself before signing.

Does title insurance cost more with some companies?

No. In Texas the Department of Insurance sets the rates and every company charges the same. Rates dropped 6.2% on March 1, 2026.

Sources

This guide explains how buying works in general. Rates and requirements are set by law, by each bank and by each developer, and they can change: the date above is when it was last reviewed.

Buying new construction in Texas: Houston, Dallas, Austin and San Antonio (2026)

Updated October 19, 2026. 5 min read.

Why Texas

It's also where the most building happens. In 2025, 46,219 single-family homes were permitted in the Houston area, 1st in the country, and 39,790 in Dallas–Fort Worth, 2nd.

The Texas Constitution prohibits an income tax on individuals. In exchange, local services are paid for mainly through property tax.

Property tax and homestead

Several bodies tax at once. There's no state property tax: the county, the city, the school district and special districts such as MUDs and PIDs levy it. To know what you'll pay, add up all the rates at the county appraisal district.
The school homestead exemption is $140,000 since November 4, 2025, when voters approved the increase, plus $60,000 more if you're 65 or older or have a disability. It only reduces school taxes; the county, city and districts can grant their own exemption, up to 20%.
On a new home you can get it the same year, if the builder didn't have it. You apply at the appraisal district; if you bought after January 1, you have up to a year from the purchase.
The cap kicks in the second year. With homestead, the appraised value can't rise more than 10% a year, but the cap starts the following year. In the first full year, the finished home is appraised at market value, and the year before it may have been taxed as land only.

The notices you must get before you sign

The MUD. Many new subdivisions sit in a district that uses bonds to pay for water, sewer and drainage, and levies its own tax. Since 2023 the notice is a single standard form, with the current or projected rate, the approved bonds and whether the city can annex the district. It warns that the district may impose an unlimited tax rate to pay the bonds and that those facilities aren't included in your home's price. If you don't get it before signing, you can terminate the contract.
The PID (public improvement district). Its assessment can be paid in full or in yearly installments, and if you don't pay it you could lose the home. If you didn't get the notice before signing, you have 7 days from receiving it to terminate the contract.
The HOA. The notice that you'll be a mandatory member and pay its dues. Here too, you get 7 days if you didn't receive it beforehand.

Flood risk: the builder doesn't have to tell you

In Houston, Harris County and FEMA are preparing new maps with heavier rainfall and urban flooding that was never mapped before. Today they're drafts: check both the current FEMA map, which is what counts for your lender and insurer, and the draft.
On the coast (Brazoria, Galveston or Chambers), your wind coverage may have to come from TWIA, which requires a certificate that the home was built to code. Ask the builder for it before closing.

Title insurance and the contract

Title insurance rates are set by the Texas Department of Insurance: every company charges the same. Rates dropped 6.2% on March 1, 2026.
The contract. The Texas Real Estate Commission prepared new versions of its new-home contracts in 2026, the forms licensed agents must use. Many builders sell with their own contract: read it with your agent or attorney.
Inspections. Outside city limits, in counties that adopted it, the builder hires three inspections: before the concrete is poured, before the walls are closed and at completion. Even if no one requires it, hire your own licensed inspector at those stages.
If a defect shows up, you must notify the builder by certified mail 60 days before suing.
Since September 2025, a state law restricts property purchases by people and companies from certain designated countries. It doesn't apply to citizens or permanent residents, and anyone lawfully in the U.S. can buy their primary home.

Buying in Texas with Instadigs

Frequently asked questions

Does Texas have an income tax?

No. The Texas Constitution prohibits it. Local services are paid for mainly with property tax, which adds up the county, city, school and special districts.

How much does homestead save in Texas in 2026?

What is a MUD and why does it matter?

Does the builder have to tell me if the home is in a floodplain?

Not through the seller's disclosure: the law exempts new homes no one has lived in. Check the FEMA flood map yourself before signing.

Does title insurance cost more with some companies?

No. In Texas the Department of Insurance sets the rates and every company charges the same. Rates dropped 6.2% on March 1, 2026.

Sources

This guide explains how buying works in general. Rates and requirements are set by law, by each bank and by each developer, and they can change: the date above is when it was last reviewed.