The Impact of Veterans on the Central Texas Housing Market

 

The Impact of Veterans on the Central Texas Housing Market

Central Texas (CTX) stands out as a region where veterans play a pivotal role in shaping the housing market. With a large concentration of former service members, especially near major installations like Fort Cavazos (formerly Fort Hood) and Joint Base San Antonio, veterans are not just participants in the market—they are a stabilizing force and a driver of continued growth. Here’s how veterans are making their mark on the CTX real estate landscape in 2025.

Veterans: A Stabilizing Force in Housing

Unlike active-duty personnel, who often rent due to frequent relocations, veterans are far more likely to put down roots and buy homes. In Bell County, which includes Killeen and Fort Cavazos, veterans make up over 20% of the adult population—the highest proportion in Texas. This high homeownership rate among veterans is even greater than that of the general public, providing a reliable and consistent base of buyers in the region.

This veteran-driven demand has helped buffer the Central Texas housing market from the declines sometimes seen with reductions in active-duty personnel. Even as troop counts have fluctuated or declined at major bases, home sales near installations like Fort Cavazos have remained strong, thanks largely to veterans choosing to purchase homes in the area.

Economic Impact and Market Resilience

The economic contribution of the military community in Texas is substantial, with military activity (including veterans) generating at least $101 billion annually for the state’s economy. Veterans often choose to settle near the bases where they served, supporting local businesses, schools, and services, and driving sustained demand for housing in these communities.

During times of economic uncertainty or downturns in other sectors, the veteran population’s steady presence helps stabilize property values and sales activity. For example, in the Killeen-Temple area, robust veteran homebuying demand has been a key factor in market resilience, even during periods when active-duty numbers have dropped.

VA Loans and Homebuyer Programs: Expanding Access

Veterans in Texas benefit from a range of home loan programs that make homeownership more accessible and affordable. VA loans, which require no down payment and offer competitive interest rates, have been a cornerstone of veteran homebuying power in Central Texas. In some areas, VA loans account for roughly half of all home purchase loan demand, underscoring the importance of these programs to the regional market.

Additionally, Texas offers special programs like the Texas Veterans Land Board (VLB) Home Loan Program, which provides favorable rates, no down payment requirements, and expanded purchasing power for qualified veterans. These benefits, along with federal and state assistance for down payments and closing costs, further strengthen the ability of veterans to buy homes and invest in their communities.

Looking Ahead: Veterans as Pillars of Growth

As Central Texas continues to grow, the veteran community’s influence on the housing market remains vital. Their high homeownership rates, access to unique benefits, and preference for settling near military communities ensure that veterans will continue to be a pillar of stability and growth in the region’s real estate market.

For buyers, sellers, and real estate professionals, understanding the needs and contributions of veterans is essential to navigating the Central Texas market in 2025 and beyond.

Sources: Texas Real Estate Research Center, National Association of Realtors, FHLB Dallas, Texas Veterans Home Loans, Texas Home Loans, LendingTree.