Retirees flock to Texas for warm weather and tax benefits, but some towns carry unsustainable premiums. Real estate experts identified five communities as overpriced markets in the state. Institutional buyers who inflate values through artificial competition target most of these retiree preferences.
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Experts believe specific investors, infrastructure weaknesses and environmental dangers push prices past what actual local market conditions show. The aging water systems and climate vulnerabilities increase the actual cost of living, especially since property taxes reach nearly 3% in this part of Texas.
GOBankingRates consulted these real estate experts to uncover which Texas towns have become notoriously expensive for retirees.
Fredericksburg
Fredericksburg stands out in the Texas Hill Country as the top location for wineries and German heritage. People flocking to this town because of its charm now see rising home values.
Large investment groups aim for Fredericksburg because boomers make consistent real estate purchases, said Wesley Kang of Realtor1099Cafe. This artificial competition drives prices beyond what local economics justify.
The community deals with problems related to its basic systems. Current capacity restrictions due to subdivision regulations in the Hill Country region force developers to maintain infrastructure that dates back many decades. Retirees should be cautious about moving to Fredericksburg because future infrastructure challenges may affect their long-term needs.
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Georgetown
Georgetown exists just north of Austin with its historic downtown and special adult neighborhoods. Its growing fame creates homes and properties that cost more.
Matt Vukovich at Matt Buys Indiana Houses explained Georgetown continues to grow and receives infrastructure updates. Surging development activity could explain why prices are increasing, but competition between builders and development risks are increasing too.
Georgetown stands tall as one of the most expensive destinations in Texas to live in assisted senior facilities. Seniors looking for low-cost medical services would be hesitant to choose this city as their retirement destination. The town’s fast growth puts pressure on fundamental community services, which affects how well people live there.
Boerne
Boerne, near San Antonio, offers a small-town atmosphere with access to urban amenities. Zillow reports average Boerne home values hit $550,180 in January 2025, per their latest data. The data shows a small decrease in values because of 0.7% during the last year. Residents of Corley Farms choose new homes that start at $300,000 and go up to $400,000.
Currently, the City of Boerne charges 1.8525% per $100 of assessed value for property taxes, which includes rates from Kendall County and Boerne Independent School District. Home prices increasing together with this tax rate create serious budget problems for people during retirement. The absence of a state income tax in Texas may not fully benefit retirees because of high property tax rates.
Kerrville
Freese and Nichols found that Kerrville needed 2,000 to 2,500 additional dwellings to meet demand, according to a San Antonio Express-News report. Many of these communities weren’t intended to manage fast population expansion, so supply hasn’t kept up, said real estate specialist Jon Wade of The Steamboat Group.
The median home price rose from $224,000 in 2018 to $345,000 in 2023, according to the City of Kerrville Comprehensive Plan. Affordability remains a major challenge, and despite efforts to encourage development, the city’s initiatives face opposition from residents worried about losing Kerrville’s character. Additionally, environmental concerns, such as water scarcity, could impact future property values and sustainability in the town.
Marble Falls
Marble Falls, located northwest of Austin, offers scenic views and outdoor activities. Its appeal has attracted both retirees and investors.
Kang said large investment groups target places like Marble Falls specifically because boomers are predictable buyers. This artificial competition drives prices beyond what local economics justify.
Additionally, the town faces infrastructure challenges. The Hill Country is already facing restrictions, and most developments are operating on decades-old infrastructure. This situation raises concerns about long-term sustainability for retirees considering Marble Falls.
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This article originally appeared on GOBankingRates.com: 5 Most Overpriced Texas Retirement Towns, According to Real Estate Agents
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