Killeen, Texas Real Estate Market: A 5-Year Outlook (2025–2030)

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Killeen, Texas Real Estate Market: A 5-Year Outlook (2025–2030)

Written by Malcolm Davis of Homevets Realty LLC.



Killeen, Texas, has emerged as one of the fastest-growing cities in the United States, fueled by robust population growth, a burgeoning tech sector, and evolving housing trends. As we look ahead to the next five years, several factors are poised to shape the local real estate market, offering both opportunities and challenges for buyers, sellers, and investors.

Population and Economic Growth

Killeen’s population has surged by 5.5% since 2020, earning it the distinction of being the second fastest-growing city in the country. This rapid growth is underpinned by a strong local economy, notably a 25% expansion in the tech sector in just the past year, which has created hundreds of new jobs and attracted skilled professionals to the area. Such demographic and economic trends typically drive sustained demand for housing.

Current Market Snapshot

  • The median sale price in Killeen as of late 2024 stands at $243,610, with homes spending an average of 49 days on the market.

  • Inventory has increased, with months of available homes rising from 3.6 to 5.3, indicating a shift toward a more balanced market, but still not a full buyer’s market.

  • Home values have seen minor fluctuations, with some sources noting a slight year-over-year decrease (down 1.8%), while others report continued year-over-year growth in both sales and prices.

Price Forecasts and Trends (2025–2030)

Forecasts suggest that home prices in Killeen will experience modest but steady growth over the next five years:

  • The average home value is projected to reach approximately $136,000 by April 2030, representing a gradual increase from current levels.

  • Annual price growth is expected to be moderate, with long-term increases of about 5% over the next decade.

  • Market stability is anticipated, with minimal risk of a significant downturn and prices remaining relatively stable through 2030.

Key Market Drivers

  • Tech Sector Expansion: The influx of tech jobs and rising salaries (with AI engineers earning up to $145,000) is attracting new residents and supporting housing demand.

  • Military Influence: Fort Cavazos (formerly Fort Hood) continues to underpin Killeen’s rental and resale markets, ensuring a steady flow of military families and associated housing needs.

  • Affordability and Inventory: While Texas faces statewide affordability challenges, Killeen’s median prices remain lower than many metropolitan areas, making it attractive for first-time buyers and investors.

Potential Challenges

  • Rising Inventory: Increased inventory and longer days on market could temper price growth and shift negotiating power toward buyers in the coming years.

  • Affordability Concerns: As prices inch upward, affordability could become a concern, especially for lower-income and first-time buyers, unless wage growth keeps pace.

  • Market Fluctuations: While overall growth is expected, short-term fluctuations upward and downward may occur, reflecting broader economic conditions and interest rate changes.

Conclusion

The Killeen real estate market is set for moderate, sustainable growth over the next five years. Population and job growth, especially in the tech sector, will continue to fuel demand, while rising inventory levels may offer more options for buyers and temper rapid price increases. For investors and homebuyers, Killeen presents a balanced opportunity: a growing city with affordable housing, economic momentum, and a stable outlook through 2030.

Whether considering buying, selling, or investing, staying attuned to local trends and broader economic shifts will be key to making informed decisions in Killeen’s evolving real estate landscape.



📞 Contact me at 254-419-5073
📧 Email me at mrdavis324@outlook.com

🔗 Learn more & connect today: www.malcolm.homevetsrealty.com

Location: Texas, USA

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