Which Texas Cities Ranked Highest in 2026?
At the top of WalletHub’s 2026 Best Real Estate Markets report, North Texas cities captured the strongest positions. Frisco ranked No. 1 overall at 70.72, with McKinney close behind at No. 2 with 69.83.
Denton followed at No. 5 with 68.08. Allen placed No. 8 at 65.30. Three of the top five overall markets were in Texas, underscoring the state’s top-five dominance.
These results gave Texas three cities in the national top five. They also gave the state four cities in the top eight.
Category Standings Signal Broader Strength
Among cities with 150,000 to 300,000 residents, Frisco ranked first. McKinney ranked second, and Denton ranked fifth.
In the under-150,000 category, Allen ranked first. Richardson ranked second, and Carrollton ranked fourth.
The spread across market sizes suggested that Texas benefited from balanced conditions shaped by housing policy and migration trends. It was not driven by one isolated local surge alone. Similar momentum appeared elsewhere in the state, where rising active listings and steady single-family demand pointed to broader housing market resilience.
Frisco and McKinney Lead Texas Housing Markets
Few Texas markets carried more weight in 2026 than Frisco and McKinney.
The two cities finished first and second in WalletHub’s Best Real Estate Markets report, tightening North Texas’ hold on the state’s housing narrative.
Frisco scored 70.72 to edge McKinney at 69.83, ending McKinney’s three-year run at the top.
Both cities also led WalletHub’s midsize-city category.
2026 signals
- Frisco: Higher prices, tighter resale stability
- McKinney: Lower prices, stronger fresh supply
Frisco’s market reflected new construction trends differently, with nearly 47% of housing built from 2010 to 2024 and limited remaining land.
McKinney paired a 40% new-home rate with strong permit activity and more balanced inventory.
Like Aurora, where low housing supply is expected to keep prices rising into 2025, both North Texas cities remain shaped by constrained inventory and strong demand.
Price gaps also shaped commuter access patterns.
McKinney’s roughly $505,000 median sale price undercut Frisco’s approximately $688,000.
Why North Texas Dominates the 2026 Rankings
Frisco and McKinney’s lead reflects a broader regional advantage across North Texas.
The Dallas-Fort Worth metro added 450,000 net new jobs this decade and 123,557 residents in the past year.
That combination kept demand durable despite elevated borrowing costs. A 3.9% unemployment rate also underscored economic resilience.
Key Forces Behind the Rankings
1. Job magnets: Corporate expansion and a $744.6 billion metro economy continued to attract workers, relocations, and new households.
2. Affordability mix: A regional median sale price near $399,900, with Fort Worth closer to $295,822, preserved access for varied buyers.
3. Inventory balance: Nearly 29,578 active listings and 4.1 months of supply gave buyers more options without erasing market strength.
North Texas also benefited from regional scale, steady multifamily occupancy, and sales growth.
Those factors reinforced long-term housing stability in 2026.
How WalletHub Scored Texas Housing Markets
Beyond headline rankings, WalletHub’s 2026 study measured 300 U.S. cities across 17 housing and economic indicators.
Each city was graded on a 100-point scale, with higher scores signaling healthier market conditions.
The methodology used weighted averages and disclosed key inputs, helping support transparency around metric weights and final scores.
Cities were also separated into large, midsize, and small categories for fairer comparisons.
| Factor | Role |
|---|---|
| Appreciation | Tracks price growth |
| Affordability | Compares prices to income |
| Job growth | Measures labor-market momentum |
| Unemployment | Signals economic stability |
| Foreclosures and vacancies | Reflect housing stress |
Texas cities scored well where appreciation, construction activity, affordability, and job-market strength aligned.
WalletHub drew from Census, BLS, Zillow, and Realtor data to assess both current conditions and longer-term market support.
Where Texas Housing Markets Are Cooling
WalletHub’s rankings highlighted relative market strength, but statewide data shows a cooler backdrop across much of Texas.
Texas entered 2026 with softer prices, longer selling times, and elevated supply. Median prices moved unevenly from $321,000 in January to $340,000 in Q2, reflecting flatter conditions.
Cooling appears strongest where listings outpace buyers, especially in higher-supply suburban and exurban areas affected by loan rate sensitivity.
- Active inventory stayed high, ranging from 4.7 months in January to 5.2 months in April.
- Days on market stretched from 80 in January to 82 in February, signaling slower absorption and weaker seller leverage.
- Rural affordability remained a relative advantage, but broader metro weakness persisted. New-home sales fell, and price declines continued in softer segments statewide.
Assessment
Texas remains a central force in the 2026 housing market rankings, with North Texas cities posting the strongest combined performance in affordability, demand, and market resilience.
The results indicate that buyers continue shifting toward fast-growing suburban markets, where inventory, income growth, and long-term stability remain better aligned.
At the same time, weaker rankings in other Texas metros suggest rising pressure from cooling demand, elevated costs, and changing migration patterns across the state.
