Lovejoy Homes Realty — Lovejoy ISD & Surrounding Areas
Every year, Gallup asks Americans which investment they believe is best for the long term. In the updated 2026 results, real estate ranked first again—by a wide margin.
Thirty-eight percent of U.S. adults selected real estate. Stocks or mutual funds followed at 20%, gold at 18%, savings accounts or CDs at 12%, bonds at 4% and cryptocurrency at 2%. Real estate received almost twice the support of the second-place choice.
Americans’ Best Long-Term Investment: Gallup 2026
Source: Gallup Historical Trends, 2026. Percentages reflect respondents’ opinions about the best long-term investment and should not be interpreted as a performance forecast.
Why rental real estate can build long-term wealth
The best rental investments do not depend on one source of return. They can create wealth through several engines working together—and that is where the long holding period matters.
Rental income
Rent can help cover debt service and operating costs. Strong underwriting uses actual leased comparables, not optimistic online estimates.
Principal reduction
With amortizing financing, part of each loan payment may reduce the balance and gradually increase the owner’s equity.
Long-term appreciation
Values can rise over time as population, incomes, construction costs and demand increase—although appreciation is never guaranteed.
Investor-created value
Renovations, improved leasing, expense control and better management can change an asset’s performance in ways a passive security does not allow.
Potential tax treatment
The IRS identifies several potentially deductible rental expenses and depreciation, subject to tax rules and the investor’s individual situation.
Inflation resilience
Over long periods, rents and replacement costs may rise with inflation, while a fixed-rate mortgage payment remains fixed.
These advantages do not make real estate automatically profitable or truly “passive.” Properties require capital, management and reserves. The correct comparison is not “real estate versus no risk.” It is whether the expected return fairly compensates the investor for the property’s specific risks.
Why I remain bullish on Texas for the long term
Texas is not one market, and every Texas property is not a good investment. Austin, Dallas-Fort Worth, Houston, San Antonio, Central Texas and smaller growth corridors can behave very differently. Yet the state’s scale and underlying demand drivers remain difficult to ignore.
Four Texas fundamentals investors should know
Population creates housing demand
Texas reached an estimated 31.7 million residents in 2025. The Census Bureau also reported that the five fastest-growing U.S. cities above 20,000 residents were all in Texas, including four in the DFW area.
A large, diversified employment base
Texas employment spans technology, finance, logistics, manufacturing, healthcare, energy, defense, education and professional services. Diversification can reduce dependence on any one employer or sector.
Multiple viable investment markets
Texas offers major metros, commuter suburbs, university markets, medical employment centers and smaller growth corridors across many price points.
Business and corporate expansion
Corporate headquarters, small businesses and relocations support jobs, household formation and housing demand—although local supply must always be measured against that demand.
The 2026 market reset may be creating a better entry point
I expect bumps. In fact, the current market is already showing them.
The Texas Real Estate Research Center’s June 2026 report, which covers April activity, counted 145,900 active listings, a 5.2-month supply and a statewide median sale price of $335,000. Statewide prices were down 0.9% year over year, while median seller price cuts were $12,500.
Those numbers do not mean every property is a bargain. They mean investors have something they often lacked during the pandemic market: selection, time for due diligence and negotiating leverage.
- More choices can reduce the pressure to compromise on location or condition.
- Price reductions can reveal motivated sellers—but only a full analysis shows whether the reduced price is attractive.
- Seller concessions, repairs or rate buydowns may improve an acquisition’s basis and near-term cash flow.
- Slower appreciation forces the investment to stand on realistic rents and expenses rather than speculation.
The risks Texas investors must underwrite honestly
A persuasive investment case should acknowledge what can go wrong. Texas growth does not eliminate property-level risk.
Property taxes
Texas has no state property tax; local taxing units set and collect property taxes. The exact bill can vary dramatically by city, school district, county and special district.
Insurance
Insurance must be priced before an offer. Texas Department of Insurance data show sharp statewide homeowners-rate increases in 2023 and 2024 before a smaller increase in 2025.
New-construction competition
Fast-growing corridors can add rentals and for-sale inventory quickly. Population growth alone does not protect an oversupplied subdivision.
Maintenance and capital costs
Roofs, HVAC systems, foundations, plumbing and turnover costs can erase projected cash flow when reserves are inadequate.
Flat or declining rents
Rental income can weaken when apartment deliveries, investor-owned homes or local employment changes increase competition.
Financing and liquidity
Higher borrowing costs can compress returns, and real estate cannot be sold as quickly or cheaply as publicly traded investments.
Why out-of-state investors need local representation
Texas can be attractive to investors seeking to diversify outside expensive or slow-growth home markets. But distance magnifies risk. An online calculator cannot see that a property backs to future commercial development, carries an unusually high special-district tax, competes against hundreds of new rentals or has a roof that may be difficult to insure.
Out-of-state investors need a local team capable of checking the details that determine the return:
- Purchase basis: How does the price compare with recent sales, current competition and replacement cost?
- Rent evidence: What have comparable properties actually leased for, and how long did they take to lease?
- Taxes and special districts: What is the likely post-sale tax bill, including MUD, PID or other assessments?
- Insurance and insurability: What coverage is available, at what cost, and how do the roof and property condition affect it?
- Condition and capital expenditures: What major systems are near the end of their useful lives?
- Supply and tenant demand: How much competing inventory exists now and what is under construction?
- Financing: Does the property still work at the actual rate, down payment and reserve requirement?
- Exit demand: Will future owner-occupants also want the home, or is the buyer pool limited mainly to investors?
My long-term conclusion
I do not expect Texas prices or rents to rise every year. Some cities will outperform others. Some neighborhoods will be overbuilt. Insurance, taxes and maintenance will remain important. Investors who overpay or depend on aggressive appreciation assumptions may be disappointed.
But the long-term case remains strong: Texas continues to add residents, employers and economic activity, while the 2026 housing reset is giving disciplined buyers more negotiating power. That combination—durable long-term demand with temporary market pressure—is exactly what serious investors should study.
The goal is not to predict the exact bottom. The goal is to acquire a quality asset at a defensible price and hold it long enough for rent, amortization, improved operations and long-term demand to do their work.
Looking for a Texas rental-property opportunity?
Lovejoy Homes Realty helps individual and out-of-state investors identify, analyze and negotiate Texas properties. We evaluate the purchase price, rent evidence, taxes, insurance, condition, financing and long-term resale demand—not just the sales pitch.
Call or Text (972) 897-1017 Don@LovejoyHomes.com Request an Investment SearchDo you agree?
Is real estate still the best long-term investment—and would Texas be your first choice? Share this article and add your opinion to the conversation.
About Don McGrath
Don McGrath is Broker/Owner of Lovejoy Homes Realty and a licensed mortgage loan originator with RealFinity, NMLS #2605760. He works with buyers, sellers and rental-property investors across North Texas and other Texas markets.
Phone: (972) 897-1017 • Email: Don@LovejoyHomes.com
Data sources
- Gallup Historical Trends: Stock Market and Best Long-Term Investment — 2026 results: real estate 38%, stocks/mutual funds 20%, gold 18%, savings/CDs 12%, bonds 4%, cryptocurrency 2%.
- U.S. Census Bureau, Vintage 2025 Population Estimates — Texas added 391,243 residents and grew 1.2% from July 2024 to July 2025.
- U.S. Census Bureau, 2025 City and Town Estimates — the five fastest-growing cities above 20,000 residents were in Texas.
- Texas Workforce Commission, June 2026 Employment Release — Texas added 43,400 jobs in June and 177,900 over 12 months.
- Texas Real Estate Research Center, Texas Housing Insight — June 2026 — April inventory, pricing and seller-concession data.
- Office of the Texas Governor, 2026 Fortune 500 Headquarters — Texas led the states with 57 headquarters.
- Texas Comptroller, Property Tax System Basics — local governments set and collect Texas property taxes.
- Texas Department of Insurance, Homeowners Rate Changes — statewide average filed-rate-change history.
- Internal Revenue Service, Topic No. 415 — general information about rental income, expenses and depreciation.
Important: This article is general information and expresses the author’s market opinion. It is not a promise of appreciation or investment returns and is not financial, tax, legal or insurance advice. Real estate can lose value, rents can decline and expenses can rise. Investors should perform independent due diligence and consult qualified tax, legal, insurance and financial professionals. Brokerage services are provided through Lovejoy Homes Realty, LLC, Texas broker license #9004137. Mortgage services are provided through RealFinity. Don McGrath, NMLS #2605760.