The U.S. housing market is showing signs of stabilization, with national data indicating steady sales of attached homes and modest growth in detached home sales. According to Cotality, Texas continues to diverge from these broader trends, particularly across housing product lines.
Detached homes in Texas are cooling at a pace that Cotality characterizes as manageable. Attached homes, including condominiums and townhouses, are experiencing steeper price adjustments. Values in this segment declined 4% year over year, a notable reversal from just a few years earlier when attached homes led post-pandemic growth at annual rates exceeding 13%.
Cotality’s Home Price Index data for 2024 to 2025 highlights the contrast:
• Nationwide detached homes increased 1.36%
• Nationwide attached homes declined 0.74%
• Texas detached homes declined 1.71%
• Texas attached homes declined 4.03%
This repricing has reshaped investor behavior across the state.
Investor Activity Shifts Toward Attached Housing
Cotality data shows that Texas investors have shifted their focus toward attached homes as pricing has softened. In 2019, investors in the state slightly favored detached properties. By 2025, that preference reversed.
In 2025, investors accounted for 39.5% of all attached-home purchases in Texas. By comparison, investor share of detached home sales reached 31.8%. The eight-point gap marks a departure from historical patterns, even after accounting for the traditionally lower entry costs and maintenance efficiencies associated with attached housing.
Nationally, investor participation in attached homes averaged 30.5%. Texas therefore exceeded the national average by nearly ten percentage points, according to Cotality.
The data suggest that investor capital is responding to price adjustments within the attached segment, where inventory is now trading at lower valuations than in recent years.
Rental Trends Reinforce Pricing Dynamics
Cotality links the increase in investor activity to conditions in the rental market. While attached home prices in Texas declined more sharply than the national average, rental growth in the state outpaced the rest of the country.
Rental Trends data from Cotality for 2024 to 2025 shows:
• Nationwide rents increased 1.58% while home prices remained flat
• Texas rents increased 2.56% while attached home prices declined 4.03%
Cotality describes this divergence as an arbitrage environment in which purchase prices are declining while rental income is rising. Investors are acquiring properties at lower price points while leasing them at higher market rents. According to Cotality, this dynamic improves yield potential in new acquisitions and affects both short-term cash flow and longer-term performance.
Price Recovery Projected Beginning In 2026
Looking ahead, Cotality’s Home Price Index forecast does not point to prolonged weakness in the Texas attached housing market. Instead, the model indicates a recovery in sales prices beginning in 2026.
The forecast suggests a V-shaped rebound rather than a structural downturn. Attached home prices in Texas are projected to stabilize and return to positive growth, reaching an annual growth rate of approximately 3.2% through 2030.
Cotality notes that the timing of this projected recovery aligns with the current surge in investor interest. The recent price correction has lowered entry points, while forward-looking indicators suggest that price stabilization is forming.
Broader Implications For Other Markets
Although Texas reflects its own set of conditions, including faster permitting processes and higher levels of new supply, Cotality notes that the underlying market mechanics may extend beyond the state.
The pattern of price softening followed by investor reallocation toward yield-producing assets could emerge in other markets if similar conditions develop. According to Cotality, markets where new supply is catching up with demand, affordability pressures are rising, and institutional capital is already active may experience comparable shifts.
Regions such as parts of Florida, Arizona, and the Carolinas may reflect these dynamics if attached home prices soften while rent growth continues to outpace asset values.
As Cotality’s data shows, Texas may serve as an early indicator of how investors respond when pricing corrections and rental growth move in opposite directions across specific housing segments.
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