Lubbock

TXLubbock Metropolitan Statistical Area

Real Estate Market Analysis

Q3 2025 Report
$247,000 (June 2025)
Median Home Price
~267,000 (city); ~325,000 (metro area)
Population
$58,000 (2024 estimate)
Median Income
Lubbock ISD: B+ (Niche 2025)
School District Rating

Market Overview

Property Values

$247,000 (June 2025)
Median Home Price
$128 (June 2025, estimate)
Price per Sq Ft
+7.4% YoY (June 2025)
YoY Change

Market Performance

Days on Market41 days (June 2025)
Market TypeBalanced, trending toward buyer-favorable
Months of Supply~3.5 months (June 2025, estimate)

Sales Activity

Sales Volume417 homes sold (June 2025)
Metro AreaLubbock Metropolitan Statistical Area
Population~267,000 (city); ~325,000 (metro area)

Economic Indicators

Employment & Growth

Unemployment Rate4.1% (Q2 2025, estimate)
Job Growth Rate+1.2% YoY (2025, estimate)
Median Household Income$58,000 (2024 estimate)

Major Employers

  • Texas Tech University
  • Covenant Health System
  • UMC Health System
  • Lubbock ISD
  • City of Lubbock

Demographics

~267,000 (city); ~325,000 (metro area)
Population
30.8 years
Median Age
+1.1% YoY (2024-2025)
Population Growth
30% bachelor's degree or higher
Education Level

Family Composition

54% families, 46% singles/other

Key Industries

Higher EducationHealthcareAgricultureManufacturingRetail

Education

School District

Lubbock ISD: B+ (Niche 2025)
District Rating

Top Schools

  • Lubbock High School
  • Talkington School for Young Women Leaders
  • Frenship High School

Higher Education

  • Texas Tech University
  • Lubbock Christian University
  • South Plains College

Infrastructure & Development

Major Projects

  • Downtown revitalization (mixed-use, retail, residential)
  • Texas Tech University campus expansion

Transportation

  • Loop 88 construction (new outer loop)
  • Broadway corridor upgrades

Planned Developments

  • New master-planned communities in southwest Lubbock
  • Expansion of medical district

Lifestyle & Amenities

Recreation

  • Mackenzie Park
  • Lubbock Lake Landmark
  • Buffalo Springs Lake

Dining & Entertainment

  • Depot District nightlife
  • Local BBQ and Tex-Mex restaurants

Cultural Attractions

  • Buddy Holly Center
  • Lubbock Symphony Orchestra
  • First Friday Art Trail

Investment Analysis

Investment Opportunities

  • Affordable entry prices for investors
  • Strong rental demand from students and medical professionals
  • Steady appreciation in select neighborhoods

Growth Outlook

Moderate, with stable long-term prospects driven by education and healthcare sectors

Market Risks

  • Slower sales pace and rising inventory
  • Potential for overbuilding in new subdivisions
  • Interest rate sensitivity

Rental Market

Strong, with median rents around $1,350/month and low vacancy near Texas Tech

Marketing Intelligence

Target Demographics

  • First-time buyers
  • Young professionals
  • Investors (student rentals)
  • Medical staff relocators

Marketing Channels

  • Zillow, Redfin, Realtor.com
  • Social media (Facebook, Instagram)
  • Local university networks

Pricing Strategies

Price slightly below recent comps to attract multiple offers in slower segments

Common Objections & Response Strategies

Objection: Interest rates are too high.

Response Strategy:

Show historical context and offer lender connections for rate buydowns or ARM options.

Objection: Homes are staying on the market longer; is now a good time to buy?

Response Strategy:

Emphasize increased selection, room for negotiation, and long-term value stability.

Objection: Worried about overpaying in a rising market.

Response Strategy:

Provide recent comparable sales and discuss local appreciation trends.

Professional Recommendations

1

Advise sellers to price competitively and invest in staging for faster sales.

2

Encourage buyers to get pre-approved and be ready to negotiate, especially on homes over 30 days on market.

3

Highlight rental investment opportunities near Texas Tech and medical district.

4

Leverage digital marketing and university networks to reach target buyers.

5

Monitor inventory trends closely to anticipate shifts in buyer/seller leverage.

Competitive Analysis

Comparable Markets

  • Amarillo, TX
  • Midland, TX
  • Abilene, TX

Market Positioning

Affordable, stable, and attractive for both investors and first-time buyers

Competitive Advantages

  • Lower median home price than Texas average
  • Stable rental market due to university and healthcare sectors

Price Comparison

Lubbock median price ($247K) is lower than Texas statewide median ($295K, June 2025)

Investment Metrics

6.5% - 7.5% (student rentals, 2025)
Cap Rates
~7% gross yield (median rent $1,350/mo, median price $247K)
Rental Yields
~15:1 (2025)
Price-to-Rent
Positive cash flow possible with 20% down in most neighborhoods
Cash Flow
3-4% annually (2025-2027, moderate growth expected)
Appreciation

Buyer Journey Insights

First-Time Buyers

Benefit from down payment assistance and affordable starter homes; increased inventory offers more choices.

Move-Up Buyers

Can leverage equity gains; more selection in mid-range homes.

Downsizers

Find value in established neighborhoods with single-level homes; slower market allows for negotiation.

Investors

Strong rental demand, especially near Texas Tech; cap rates remain attractive.

Relocators

Drawn by job opportunities in education and healthcare; affordable cost of living and growing amenities.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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