What to Expect for the Average Cost of a Home in Texas City, TX in 2026

Buyers looking at Galveston County almost always end up comparing the average cost of a home in Texas City, TX against the neighboring waterfront towns. The Texas City, TX housing market is a genuine mix - older ranch properties sitting alongside newer master-planned communities - and that spread creates a wide range of price points depending entirely on which neighborhood you're standing in.

Recent data from the spring of 2026 puts the median sale price in Texas City at around $275,000. That figure lands slightly below the statewide average, which is exactly why this city keeps showing up on the radar of buyers who want coastal proximity without paying Galveston Island prices to get it.

Current Home Prices in Texas City, TX

As of mid-2026, the median sale price for a home in Texas City is roughly $275,590. Half of all homes sold for more than that, half sold for less - that's what the median actually tells you, and it's more useful than an average.

Averages can get distorted. A handful of multi-million dollar waterfront sales will pull that number up in a hurry. Some older metrics still put the typical home value closer to $210,000, but recent MLS data consistently confirms the median closed sale price is holding near that $275,000 mark.

Median vs. Average Pricing

Texas City stays relatively affordable compared to the rest of the state. The average home value across Texas is approximately $303,000, so you're already in better territory here before you even start negotiating.

Buyers arriving from larger metros tend to notice the difference quickly. For the same price you'd pay for a smaller property inland, you can secure considerably more square footage in Texas City.

Regional Comparisons: Galveston County and Houston

Texas City sits in Galveston County, with a small portion of its water area extending into Chambers County. Prices shift considerably across the county depending on flood zones and how close you are to the Gulf of Mexico - two factors that matter a lot around here.

Pull back to the broader Houston-The Woodlands-Sugar Land metropolitan area and the average home value hovers around $265,000. Texas City aligns closely with that metro average, which means you're getting a coastal alternative to Houston's immediate suburbs without paying a meaningful premium for it.

Costs Across Texas City Neighborhoods and Zip Codes

The city covers several distinct zip codes - 77510, 77539, 77568, 77590, 77591, and 77592 - and where you land within those boundaries determines both the housing stock you're looking at and the price you'll pay for it.

The eastern side of the city runs more toward established Craftsman-style and ranch homes. The west skews newer. Bayside communities often feature elevated properties designed specifically to prevent flooding, and that elevation requirement touches both the purchase price and what you'll pay for insurance every year.

Pricing by Local Zip Codes

Lago Mar stands out as one of the most popular master-planned communities in the area. It's known for its 12-acre Crystal Lagoon, and homes in some of its subdivisions start around $198,000. For buyers who want waterfront access, Grand Cay Harbour offers properties with private docks and direct water views. Central Park and Pelican Harbour are two other notable neighborhoods, each with varied price points depending on the home's age and how close it sits to the water.

Master-Planned and Waterfront Communities

Newer construction in master-planned communities tends to push neighborhood averages up. You're paying for modern amenities and community infrastructure that the older sections of the city simply don't have.

Waterfront properties carry a premium on top of that. Private docks and water access add real value, and buyers need to account for that when they're sizing up what a price tag actually represents in these specific subdivisions.

Evaluating Price Per Square Foot and Building Costs

Breaking down a purchase price by square footage gives you a much cleaner way to compare properties side by side. In Texas City, the median sale price per square foot is approximately $142.

That number does real work. It helps when you're weighing a smaller, updated home against a larger one that needs renovation. It also gives you a reference point if you're thinking about buying land and building instead.

Resale Price Per Square Foot

The $142 per square foot median is a solid benchmark for the resale market. Homes in premium waterfront neighborhoods, or anything with a serious recent renovation, will price well above it.

Older homes on the eastern side of the city often list below that figure. If you're willing to take on cosmetic updates, that's where you'll find properties at a lower price per square foot.

What It Costs to Build New

Building in Texas generally runs between $180 and $280 per square foot for a home with standard builder-grade finishes. Some estimates put the baseline a bit lower - around $100 to $200 per square foot for basic construction.

Go custom with granite countertops and hardwood floors and costs typically range from $280 to over $400 per square foot. Coastal areas add another layer to that math: local permits and potential elevation requirements can move the final number, so don't skip that research before you commit to a lot.

Recent Housing Market Trends in Texas City

The local market has cooled off over the past year. As of mid-2026, the median sale price is down about 3.6% year-over-year, and the median price per square foot has dropped roughly 5% since last year. For buyers, that's a meaningful shift in purchasing power compared to what this market looked like before.

Year-Over-Year Price Movements

Homes in Texas City are currently spending a median of 72 days on the market before going under contract. Active inventory sits at roughly 326 homes, which translates to about 4.7 months of supply.

Sellers are still getting close to their number - the average sale-to-list ratio is 96.2%. About 18.8% of homes are selling above the original list price, so well-priced properties are still drawing competitive offers even in a softer market.

Time on Market and Inventory Signals

At 4.7 months of supply, this market is balanced, which is a real change from the frantic pace of previous years. Buyers have more time to see properties, run inspections, and make considered decisions rather than reactive ones.

That said, sellers who overprice are feeling the difference. With a 72-day median sitting time on the market, accurate pricing matters.

Overall Affordability and Cost of Living

The mortgage payment is only part of the picture. Texas City generally offers a lower cost of living than the national average - estimates put it between 11% and 14% below the national baseline - and that gap shows up in everyday expenses like groceries, transportation, and utilities, not just housing.

Everyday Living Expenses

The median household income in Texas City ranges from roughly $49,000 to $65,000 depending on the data source, which places local earning power slightly below the state average. Buyers relocating from higher-income metros often find that gap matters less than they expected once they see what things actually cost here.

Local Income Levels

The lower median income looks different when you factor in what residents are spending on housing. People here are putting a smaller percentage of their take-home pay toward a mortgage than their counterparts in central Houston.

That balance works for locals earning the median wage, and it works especially well for remote workers bringing in out-of-state salaries. The math is simply more forgiving.

Budgeting for a Texas City Home Purchase

Turning the median home price into a real monthly number means looking at down payments and interest rates together. A standard 20% down payment on a $320,000 home comes to $64,000. At a 30-year fixed rate of 6.58%, the estimated principal and interest payment lands around $1,630 a month. Property taxes, homeowners insurance, and any applicable HOA fees come on top of that.

Estimating Your Required Salary

The 28% rule is the standard financial benchmark here: your monthly housing payment shouldn't exceed 28% of your gross income. Working from that rule, you'd need to earn at least $70,000 a year to afford a typical home in Texas City.

That assumes you're coming in with a 20% down payment, standard interest rates, and minimal existing debt. Carry significant student loans or car payments and that required income number climbs.

Applying the 3-3-3 Rule

The 3-3-3 rule gives buyers another lens on affordability. It calls for saving three months of mortgage payments as an emergency fund, keeping your monthly payment at or below 30% of gross income, and holding the home price under three times your annual salary.

Applied to the $275,000 median, this framework suggests a buyer would ideally earn around $91,000 annually. It's not a hard requirement, but it's a conservative benchmark worth knowing if long-term financial stability is the goal.

Frequently Asked Questions

What is the average price of a house in Texas City, TX right now?

The median sale price for a home in Texas City is approximately $275,590 as of mid-2026. Older data points suggest a typical home value around $210,000, but recent closed sales track closer to the $275,000 mark.

Is it cheaper to buy a home in Texas City compared to Galveston or Houston?

It depends on the specific area. Texas City's median price of $275,590 is slightly higher than the broader Houston metro average of $265,000, but it remains a more affordable coastal option compared to many island properties in Galveston County.

Which neighborhoods in Texas City have the most affordable homes for sale?

The eastern side of the city generally features older ranch and Craftsman-style homes that offer lower entry points. In newer master-planned communities like Lago Mar, homes in certain subdivisions start around $198,000.

Are home prices in Texas City currently going up or down?

Home prices are currently trending down. Recent data shows a 3.6% year-over-year decrease in the median sale price, and the price per square foot has dropped about 5% since last year.

How much extra should I budget for flood and windstorm insurance when buying a home in Texas City?

Insurance costs vary based on the property's elevation and proximity to the water. Bayside communities often feature elevated properties to prevent flooding, which can help mitigate some insurance premium costs, but buyers should always request specific quotes during the option period.

What salary do I need to comfortably afford an average-priced home in Texas City, TX?

Using the standard 28% rule, you need an annual salary of at least $70,000 to afford a typical home in the area. This assumes a 20% down payment and standard interest rates, though carrying other debts will increase the income you need.