Best Markets in Texas with Affordable New Construction Homes

Texas has long been a coveted destination for first-time buyers and young families. With a robust and growing economy, numerous popular cities, and a range of attractions that include the Dallas Cowboys, the Houston Space Center, The Sixth Floor Museum at Dealey Plaza, the USS Lexington and the Alamo, there's something for everyone in Texas.

But where is the best place to settle down with your family, start a new career, or relocate for a better quality of life, especially if you're looking for an affordable new construction home?

In this guide, we will look at the best new home markets in Texas and help you find the locations that offer the best value and overall quality of life as either a first-time homebuyer or a relocating young family.

Why Choose New Construction Homes in Texas?

Before discussing the best places to find your new home, it's worth remembering why purchasing a new construction home over a resale makes the most sense for homebuyers.

The top benefits start with the quality of construction. Today's homes adhere to higher building code standards, using the latest homebuilding advancements and high-quality construction materials. The difference in build quality and materials between today's homes and those built 20 years ago is significant. Plus, there's no need for renovations or extensive maintenance.

But the advantages don't end there. For example, new homes for sale offered by LGI Homes are move-in-ready, and our CompleteHome™ and CompleteHome Plus™ packages give you appliances, high-end finishes (including quartz and granite worktops) and fixtures all included in the sale price. Most new home communities in Texas also feature communal amenities, including swimming pools, recreation centers, private parks and walking trails.

Furthermore, modern homes qualify for various financial incentives, including first-time homebuyer programs,FHA loans, VA loans and USDA loans (location-dependent). LGI Homes also offers incentives such as builder-paid closing costs in selected communities, making your new home even more affordable.

Best Cities with Affordable New Construction Homes in Texas

If you know a brand-new home in Texas fits you, then below are the best markets for you to explore based on various factors, including quality of life, value for money, local economic prospects and lifestyle and entertainment opportunities.

Dallas-Fort Worth

The Dallas-Fort Worth metro area is the biggest in Texas and the fourth largest nationally. It has many attractions, professional sports teams and a thriving local economy. However, despite its size and growing popularity, there are still plenty of affordable locations within the region, well under the state's median listing price of $359,500.

This is thanks, in large part, to a local boom in new home construction. Over the past decade, almost 400,000 new single-family homes have been constructed in the DFW region, making this area one of the most active in new construction nationally. Despite not being enough to bridge the housing gap, it's helped keep prices stable, and you can secure a 3-bed, 2-bathroom home with a 2-car garage for under $300,000, even in central Dallas.

Aside from housing, DFW has long been an excellent place to live. Nationally recognized attractions include the Dallas Arboretum and Botanical Garden, The Sixth Floor Museum at Dealey Plaza and Six Flags Over Texas. The local economy is robust, too, with 24 Fortune 500 companies headquartered in the metropolitan area. Fort Worth was also recently rated as one of the best places to launch a business in the US.

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Houston

Nicknamed Space City, Houston is home to far more than the headline acts of the Houston Space Center, the USS Lexington and leading major league franchises, including the Houston Texans, Houston Astros and Houston Rockets. It's also one of Texas's best places to buy a new home.

Last year, the city led the nation in issuing new housing permits, and 50,000 of the almost 70,000 permits issued were single-family homes. In short, Houston offers you one of the best locations in the state in terms of choice and value for money. For example, the Park Vista at El Tesoro community in central Houston has 3-bed, 2-bath homes with over 1,000 square feet of living space starting at just $265,900.

Houston regularly ranks among the top cities nationwide in terms of quality of life. US News recently ranked it the third-best place to live in Texas, and The World's Best Cities Report from Resonance ranked it among the top ten best places to live nationally. Houston's quality of life is boosted by a high-performing economy, with leading employers including ExxonMobil and United Airlines. It is also the country's second-largest port, driving significant global trade.

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San Antonio

San Antonio is known for the Alamo and the NBA's Spurs, but the city has a lot to offer first-time homebuyers and families looking for a place to buy a new home. Multiple online publications featured San Antonio in their lists of the best cities to live in Texas; HAR.com recognized San Antonio as one of the top Texas cities for families.

Plenty of leading attractions beyond the San Antonio Spurs and the UNESCO World Heritage site of the San Antonio missions draw in millions of visitors annually. Six Flags and Seaworld San Antonio cater to families, whereas the famous Riverwalk delivers the best of San Antonio's nightlife.

As a slightly smaller Texas city, San Antonio has an edge in affordability. New construction homes offer excellent value for money. Before any financial incentives, new 2-bedroom homes can be snapped up for the low $200s, making this a fantastic market for first-time homebuyers.

While the city might not have the big-name corporations of DFW and Houston, local job prospects are still excellent, with an unemployment rate of 3.8%, well below the Texas and national averages in December 2024. Leading employers are in healthcare, aerospace, and tech, with big-name local employers including USAA, The Hartford Insurance Group and iHeartMedia.

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Austin

Undoubtedly, Austin is one of the most in-demand cities for families and young professionals. Within the picturesque Texas Hill Country, Austin blends urban living with an incredible natural playground to the west of the city. It's also a cultural hub, with annual events including South by Southwest (SXSW), Formula One and Austin Film Festival. Given how much there is on offer, it's no wonder US News listed Austin in the top 10 places to live in the USA for 2025.

Even though demand is high, prices have remained in check thanks to a steady influx of new construction homes. Over the past year, over 20,000 new homes have been constructed in the Austin-Round Rock metro area. Regarding prices, you can expect to secure 3-bed, 2-bath homes in the high $200s and 5-bed, 3.5-bath homes for a fraction over $400,000 – representing excellent value for money.

Austin boasts a booming tech-led local economy (Dell, HP, Cisco and Intel all have a significant presence in Austin). Away from the office, you can spend your weekends exploring areas such as the Texas Highland Lakes or hiking trails that hug the Colorado River.

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Other New Home Construction Markets in Texas Worth Considering

While we've covered the best new home construction markets in Texas above, there are a few other fast-growing popular cities we wanted to share with you that could deliver the perfect balance of a quieter pace of life without ever being too far away from big-city amenities.

Katy

Katy, Texas, is a small city located on the outskirts of Houston. With all the big-city attractions and amenities just a short drive away, Katy offers residents excellent qualities of its own, such as one of the best school districts in Texas (ranked 7th for 2025 by Niche.com) and a unique suburban charm that sees it regularly ranked in the top 20 Houston suburbs.

New construction homes here are also affordable. Three-bedroom homes are available in Katy for less than $300,000, and four-bedroom, 2.5-bath homes cost just over the state average, around $350,000.

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New Braunfels

Another excellent location to consider is New Braunfels, less than 30 minutes from downtown San Antonio. It offers the best of all worlds: the Texas Hill Country on your doorstep, the fastest job growth rate in the country, a diverse cultural heritage from its German roots, and the Schlitterbahn Water Park, consistently rated as the best in the world.

The median sale price in New Braunfels was $434,900 in Q4 2024, according to Moveto. Despite the location's desirability, new home developments have helped increase supply and keep prices affordable. If you're considering San Antonio but don't want the "big-city life," then the small-town charm and outdoor adventures of New Braunfels might be the perfect fit

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San Marcos

If strategic positioning is high on your checklist, consider San Marcos, which is almost exactly halfway between Austin and San Antonio. Living here would allow you to commute to either city and enjoy everything this place offers.

You can spend weekends hiking in the forested Texas hills, taking in cultural events at the beautiful Texas State University campus, or shopping at one of the country's largest outlet malls (over a million square feet). Whatever you decide, there's plenty to see and do here despite being a smaller city.

The local economy is also robust in San Marcos, with the median income increasing by 11.5% last year alone. But, despite the growth, home prices remain within reach for most young professionals and families. Buyers will love the stunning new homes in TRACE, a master-planned community with world-class amenities starting below $340,000.

First-time homebuyers can secure a brand-new 3-bedroom residence for under $300,000 while growing families can snag a five-bedroom new construction home in San Marcos for under $400,000.

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Which New Home Construction Market in Texas Will You Choose?

If you're moving to or within the Lone Star state, the good news is that you'll have plenty of options regarding your new home purchase. All major cities in the region boast well-thought-out new home communities packed with amenities and designs well-suited to modern tastes.

If you choose an LGI Homes community, you can also enjoy extensive structural and labor warranties, upgrades included as standard, and the ability to have the keys in your hands in as little as 45 days. Look for further financial incentives available at select communities, such as interest rate buydowns or builder-paid closing costs.

Start researching your preferred markets today, and when you're ready, schedule a tour of your favorite community with one of our friendly New Home Consultants.