Waco, Texas Housing Market

How much can you negotiate in Waco?

Only 26 out of every 100 homes for sale have found a buyer. The other 74 are still waiting. Your offer may be the only one on the table. About 1 in 4 sellers has already dropped their price. Each one has learned their first price was too high. Start below their new price, not their old one.

A typical Waco home takes 66 days to find a buyer. Half of them take even longer. That is 11% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 90+ days ago. There are 869 homes for sale in Waco. That is the most in ten years. It is 9 times the low of May 2021. Every one of them competes with the house you want.

What to do about it

• Start in 76711, 76710, and 76706. Those are the three softest ZIP codes in Waco.
• Filter for homes listed 90+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• In 76711 only 16 out of 100 homes have a buyer. You can lose a few offers there and still win.

Is now a good time to buy in Waco?

Asking prices are 11.0% below their Jul 2024 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Waco prices have risen in 91 of the last 108 months. Drops here have been short and shallow. Buying in a slow month has rarely hurt a long hold.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

Who will rent from you in Waco?

In Waco, 48 out of every 100 households rent. That is nearly half. The renter share is shrinking. Five years ago it was 50 in 100. Renter households average 2.4 people. Two and three bedrooms fit the typical renter.

Households grew 5% in five years. The housing stock grew 6%. The two are moving in step. 12.6% of homes sit empty. Tenants have options. Budget extra weeks of vacancy between leases.

The median Waco household earns $52,153 a year. Incomes here have grown 5.1% a year since 2019. Incomes and home prices are rising in step. A typical home costs 5.3 times the median income. That is the national middle. Neither cash flow nor appreciation is free here. A tenant on the median income can pay about $1,304 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

That is the market, not your address. Run an address through the app to see its rent estimate and cash flow.

What numbers should you underwrite a Waco deal with?

• Price growth to assume — +4.2%/yr. Waco grew 7.9% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Waco grows about 4.2% a year. That is the number to type in. Prices fell 3.1% over the last year. That is a timing signal, not a trend.
• Months of carrying cost — 3. A typical home takes 66 days to sell. Budget that long when you exit or refinance. It is 11% slower than a year ago.
• Odds you cut your price to sell — 1 in 4. About 23% of homes on the Waco market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $173/sqft. The average listing runs +23% above the median. Luxury homes skew it. Comp your own size class per sqft.
• Competition when you exit — +20%. That is how much the number of homes for sale grew in a year. Your resale will face a bigger crowd than today's comps did.
• Price-to-income ratio — 5.3×. A typical home costs 5.3 times the median income. That is the national middle. Neither cash flow nor appreciation is free here. Incomes and home prices are rising in step.
• Tenant rent ceiling — $1,304/mo. 30% of the median household income of $52,153. Rents above this line shrink your tenant pool fast.

Is Waco a buyer's or seller's market in 2026?

Yes, if you negotiate. Buyers have the upper hand in Waco right now. 26 out of every 100 homes for sale have a buyer, 23% of sellers have cut their price, and a typical home takes 66 days to sell.

Are Waco home prices going up or down?

Asking prices are 11.0% below their Jul 2024 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for Waco?

Assume +4.2% a year. Waco grew 7.9% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Waco grows about 4.2% a year. That is the number to type in. Prices fell 3.1% over the last year. That is a timing signal, not a trend.

How fast are homes selling in Waco?

A typical Waco home takes 66 days to find a buyer. Half of them take even longer. That is 11% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 90+ days ago.

Is Waco a renters' market or an owners' market?

In Waco, 48 out of every 100 households rent. That is nearly half. The renter share is shrinking. Five years ago it was 50 in 100. 12.6% of homes sit empty. Tenants have options. Budget extra weeks of vacancy between leases.

What rent can Waco tenants afford?

A tenant on the median income can pay about $1,304 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median Waco household earns $52,153 a year.

Which Waco ZIP code has the most negotiating room?

76711. Only 16 out of 100 homes there have a buyer. 28% of sellers there have cut their price, and a typical home takes 54 days to sell.