Quick Summary
- Texas ranked No. 18 nationally in SmartAsset’s study of where young adults are pursuing homeownership, with nearly 23 percent of Texas mortgage applications in 2025 coming from buyers under 35.
- Texas had 259,737 mortgage applications from buyers under 35 in 2025, the highest number of young adult mortgage applications of any state.
- In Dallas, young potential homebuyers need about $83,000 to afford a starter home, according to the CultureMap Dallas report.
- McKinney and Plano are also highlighted as appealing North Texas options for first-time homebuyers and people looking to start a family.
Texas Is Becoming a Major Destination for Young Homebuyers
Buying a first home has become more challenging for younger Americans, but new data shows that young adults are still pursuing homeownership, and Texas is one of the states attracting the most attention from this generation of buyers.
According to a new SmartAsset study, reported by CultureMap Dallas, Texas ranked No. 18 in the nation for young adult homebuyers, with nearly 23 percent of all mortgage applications in the state submitted by individuals under 35.
That ranking is significant, but one number stands out even more: 259,737 Texas homebuyers under 35 submitted mortgage applications in 2025. That was the highest number of young adult mortgage applications of any state.
For context, California had 170,434 applications from buyers under 35, while Florida had 159,429. Despite having fewer young adult applications numerically, Texas had a substantially higher share of its overall mortgage applications coming from buyers under 35.
Why Are Young Buyers Looking at Texas?
SmartAsset’s findings point to housing costs as one factor influencing where younger Americans pursue homeownership.
The study found that the four states with the highest shares of mortgage applications from adults under 35, North Dakota, West Virginia, Nebraska, and Iowa, all had typical home values below $300,000.
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Texas was different. The typical Texas home was valued at $302,187, placing the state No. 18 nationally.
That suggests the Texas story is not simply about having the cheapest homes in America. Instead, the state continues to attract a large number of younger prospective homeowners even while affordability remains a major consideration.
And that distinction matters for buyers in the Dallas-Fort Worth area.
What This Means for Young Homebuyers in Dallas
For young adults considering homeownership in Dallas, affordability remains one of the biggest hurdles.
According to CultureMap Dallas, young potential homebuyers looking for their next home in Dallas need to make about $83,000 to afford a starter home.
That figure puts the conversation into perspective. Texas may be attracting a large number of younger homebuyers, but becoming a homeowner in Dallas still requires careful financial planning.
The Dallas-Fort Worth area also offers buyers options beyond the city itself. CultureMap Dallas highlights McKinney and Plano as surrounding suburbs with strong appeal for first-time homebuyers, particularly those looking for a place to establish a home and start a family.
For a first-time buyer, the right decision is not necessarily about finding the cheapest house. It is about finding the right combination of price, location, monthly payment, lifestyle, and long-term goals.
Young Americans Still Want to Own Homes
One of the most interesting parts of this report is that younger Americans have not abandoned the idea of homeownership.
They are facing significant obstacles.
SmartAsset points to high home prices, elevated interest rates, and limited housing supply as challenges affecting would-be young homebuyers.
The report also cites a recent Pew Research Center survey showing that nearly 9 in 10 younger Americans believe buying a home is harder for them than it was for their parents.
Yet they continue to pursue it.
In my opinion, that is an important distinction for anyone watching the Dallas real estate market. The challenge is not necessarily a lack of desire among younger buyers. The bigger issue is figuring out how to make the numbers work in a market where affordability remains difficult.
That is why first-time buyers should focus less on simply asking, “Can I buy a house?” and more on asking, “What can I comfortably afford, where should I buy, and what strategy makes sense for my situation?”
My Take as a Dallas-Fort Worth Realtor
I think the Texas numbers are encouraging for the long-term housing market.
Nearly 23 percent of Texas mortgage applications coming from people under 35 tells me that younger adults are still actively pursuing homeownership despite the affordability challenges.
But I would not interpret this data as meaning that buying a home in Texas, or especially Dallas, is easy.
It is not.
The Dallas-Fort Worth market requires buyers to be strategic. Interest rates, home prices, property taxes, insurance costs, HOA fees, location, and the condition of the home can all affect the actual monthly cost of ownership.
For first-time buyers in Dallas, McKinney, Plano, and other DFW communities, preparation can make a significant difference. Understanding your budget before shopping, comparing financing options, and knowing which areas and property types fit your goals can help you make a more informed decision.
The opportunity is still there. The strategy just matters more.
What the Texas Ranking Means for the DFW Housing Market
Texas ranking No. 18 nationally for young adult homebuyers is another indication that homeownership remains an important goal for younger residents and prospective buyers.
With nearly 260,000 mortgage applications from Texans under 35 in 2025, the state clearly has a large population of younger adults pursuing homeownership.
For Dallas-Fort Worth specifically, the challenge is balancing that demand with affordability.
A buyer earning around $83,000 may be able to qualify for a Dallas starter home, but qualification and comfortable affordability are not necessarily the same thing. Buyers should look at the entire monthly housing cost rather than focusing only on the purchase price.
For young buyers considering Dallas, Fort Worth, McKinney, Plano, or other DFW communities, the best strategy is to evaluate the market based on your personal finances and long-term goals rather than simply following headlines.
For more Dallas housing market insights, you can also read my related article, “Dallas Housing Market Update: July 2026 Dallas City Real Estate Market Analysis.”
If you’re a Dallas homeowner trying to navigate this 2026 market, you need a pivot strategy. Click here to access my free 2-page Seller Strategy guide.
If you are looking for new construction homes in DFW and Texas, I have direct-to-builder access to real-time inventory and incentives, including homes that haven’t hit the MLS or public sites yet. Click here for your personal link to my portal.
Frequently Asked Questions
Is Texas a top state for homebuyers under 35?
Yes. SmartAsset ranked Texas No. 18 nationally based on the share of mortgage applications submitted by buyers under 35. Nearly 23 percent of Texas mortgage applications came from this age group in 2025.
How many Texas homebuyers under 35 applied for mortgages in 2025?
A total of 259,737 Texas homebuyers under 35 submitted mortgage applications in 2025, the highest number of young adult mortgage applications of any state.
How much income is needed to afford a starter home in Dallas?
According to the CultureMap Dallas report discussed in this article, young potential homebuyers need approximately $83,000 in annual income to afford a starter home in Dallas.
What DFW suburbs are appealing to first-time homebuyers?
The CultureMap Dallas report specifically highlights McKinney and Plano as surrounding suburbs with strong appeal for first-time homebuyers and people looking to start a family.