Waco, TX Housing Market
AI-powered market intelligence for the Waco, TX metro area.
PropertyIQ Scores
Waco, TX Market Analysis
Market Overview
Waco's PropertyIQ Score of 26 out of 100 places the market at the lower end of the performance spectrum, indicating weak to moderate conditions. The median home value of $255,340 is roughly 15% below the state benchmark of $299,367, which implies relatively affordable prices on paper. However, the score is held back by mixed momentum: a 12-month home value momentum of 2.83% is offset by a 3-month momentum of -0.16%, a median days on market of 72 days, and 21.9% of listings with a price cut.
Compared with state averages, Waco shows a split profile. The rent index of $1,434 exceeds the state average of $1,339, and the unemployment rate of 4.1% is below the state average of 4.5%. At the same time, median household income of $63,880 is well below the state average of $76,292, which may limit local buying power even at lower price points.
Taken together, the data describes a market that is not experiencing rapid appreciation or heated competition, but is also not in distress. Below-state home values, above-state rents, and a slow sales pace suggest a flat to mildly correcting environment where buyers have negotiating room and sellers must be patient on pricing.
Key Trends
First, home value momentum has cooled. The 12-month momentum of 2.83% shows modest annual appreciation, but the 3-month momentum of -0.16% and a year-over-year home value change of $-3 indicate prices have flattened or slightly declined recently.
Second, the market is moving slowly. A median days on market of 72 days means homes are taking roughly two and a half months to sell. Combined with 21.9% of listings showing a price cut, this points to a buyer's market where sellers are adjusting expectations.
Third, affordability is constrained by local incomes. The median home value of $255,340 is below the state average of $299,367, but median household income of $63,880 trails the state median of $76,292. The gap suggests local wages may not comfortably support home purchases despite the lower price tag.
Fourth, rental demand appears comparatively strong. The rent index of $1,434 is above the state average of $1,339, indicating healthier rental economics relative to owner-occupied sales.
Who Is This Market For
The PropertyIQ Score of 26 and the underlying metrics suggest Waco may suit patient buyers and long-term investors more than short-term flippers or sellers seeking premium prices. First-time buyers could find opportunities in the below-state median home value of $255,340, but they will need to account for the local median household income of $63,880, which may limit financing comfort. The 72-day median days on market and 21.9% price-cut share give buyers leverage to negotiate.
Rental-focused investors may also find this market appealing because the rent index of $1,434 is above the state benchmark of $1,339 while purchase prices remain below state levels, potentially offering a favorable rent-to-price structure. However, investors should be prepared for a slower resale environment if they need to exit. Move-up buyers may face challenges because their existing homes could linger on the market and require price adjustments. For sellers, this is a market that rewards realistic pricing and patience rather than aggressive expectations.
Outlook
The forward view for Waco is one of continued softness unless momentum reverses. The 3-month home value momentum of -0.16% and the year-over-year home value change of $-3 indicate that near-term direction is flat to slightly down. With 1,598 homes for sale and a median days on market of 72, inventory is not dangerously high, but the slow pace suggests buyers are likely to retain the upper hand in the near term. The 21.9% share of listings with a price cut reinforces that sellers are adjusting downward to meet demand. If the 12-month momentum of 2.83% does not carry into future quarterly readings, the market could see further modest price softening. Population growth data is not available, leaving an unknown for demand tailwinds. Overall, the numbers support a cautious outlook: stable rents, soft sales, and a market likely to remain more favorable to buyers and tenants than to sellers in the near term.
AI-generated analysis based on current market data. Last updated September 25, 2026.
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Waco, TX market data
Waco, TX Housing Market Overview
Waco, TX's median home value is $255K, up 2.8% over the past year. Homes here sell in a median 72 days. Its PropertyIQ Score of 26 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
The Waco, TX metropolitan area represents a distinct segment of TX's housing landscape. The PropertyIQ Score combines price momentum — how Zillow home values have trended over the past 3 and 12 months — with market-flow signals from Realtor.com that track how fast homes sell and how often sellers cut prices. The result is a single measure of how this market is positioned to outperform or lag its state over the next three years.
South Central housing markets are propelled by energy sector economics, corporate relocations, and rapid population growth. Texas metros in particular have seen explosive expansion, though affordability pressures are emerging in the fastest-growing areas. Within the South Central, Waco, TX's PropertyIQ Score of 26 runs below the South Central norm.
Texas continues to be one of America's top relocation destinations, with no state income tax and a business-friendly regulatory environment driving corporate headquarters relocations and population growth.
Each month, PropertyIQ updates its score for Waco, TX using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been positive, with home values up 2.8% over the past year.
Use PropertyIQ's interactive analytics to compare Waco, TX against any other US metro on its PropertyIQ Score and underlying metrics. Generate a free AI market report, explore historical trends on the graphs page, or see how this market ranks on the scores dashboard.
Counties in the Waco, TX metro area
ZIP codes in the Waco, TX metro area
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Waco, TX a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Waco, TX currently scores 26, a weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $255K, up 2.8% over the past year. So whether Waco, TX is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Waco, TX?
Waco, TX's PropertyIQ Score is 26, indicating weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 26 places Waco, TX below its state benchmark.
Are home prices in Waco, TX rising or falling?
Home prices in Waco, TX are rising. Over the past year, the median home value increased 2.8%, reaching $255K. Over the latest three months, values slipped 0.2%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Waco, TX's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Waco, TX?
In Waco, TX, homes sell in a median of 72 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 22% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Waco, TX market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.