Palacios, TX—77465
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Palacios, TX
As of Oct '25, the median home price in Palacios, TX is $181,000, with a year-over-year change of -2.4%. This indicates that home prices in Palacios, TX are decreasing. According to Zillow, the 1-year price projection is -2.0%, suggesting a decrease housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $181,000 | -2.4% |
| Single Family | $181,000 | -3.2% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $182,000 | -2.2% |
3 Bed | $240,000 | 0.0% |
4 Bed | N/A | N/A |
| 5 Bed | N/A | N/A |
% of Housing Stock
Rental Trends — Palacios, TX
As of July '25, Rentcast reports the average rent in Palacios, TX is $1,710, with a year-over-year rent change of 37.9%. Per bedroom, the median rent as of July '25 in Palacios, TX is 2-bedrooms: $1,050, 3-bedrooms: $2,400, 4-bedrooms: $3,000. The most common rental property sizes in Palacios, TX are 2-bedroom and 3-bedroom, accounting for 55.6% and 34.5% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,250 | $1,710 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | N/A | N/A |
| 2 Bed Rent | $950 | $1,050 |
| 3 Bed Rent | $1,800 | $2,400 |
| 4 Bed Rent | $3,000 | $3,000 |
% of Rental Stock
Property Listings — Palacios, TX
As of Oct '25, Realtor.com reports that the median days on market for a home in Palacios, TX is 145. This is a increase of 21.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 7.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $255,000 | -16.0% |
Listing Count | 108 | 41.0% |
| Listings as % of Homes | 1.1% | 41.0% |
Days on Market | 145 | 21.0% |
Demographics — Palacios, TX
As of the latest ACS Survey released in 2023, Palacios, TX has a population of 7,270, which has increased by 3.8% over the past 5 years. Palacios, TX is a moderately popular place for families, as children make up 22.2% of the population. The area has a poorly educated workforce, with 20.3% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 7.6% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 7,270 | 3.8% |
% Under 18 | 22.2% | -8.6% |
% Seniors | 18.4% | -8.5% |
% WFH | 7.6% | -30.9% |
% w/ College Degree | 20.3% | 33.6% |
As of the latest ACS Survey released in 2023, Palacios, TX is a predominantly hispanic area, with 54.0% of the population identifying as hispanic. The hispanic population has grown by 15.9% in the last 5 years. The second most common race or ethnicity in Palacios, TX is white, making up 38.7% of the population. Foreign-born residents account for 7.6% of the population in Palacios, TX, and this percentage has decreased by 46.5% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 38.7% | -7.9% |
% Black | 0.9% | -69.0% |
% Hispanic | 54.0% | 15.9% |
% Asian | 5.2% | -33.3% |
% Foreign Born | 7.6% | -46.5% |
Mortgage and Risk — Palacios, TX
According to HUD data as of 2023, there were 36 mortgage originations in Palacios, TX, of which 67.0% of loans were conventional mortgages. The average loan-to-value was 69.0%, with 33.0% above 90% LTV (very high). This implies large mortgage risk in Palacios, TX. Investor activity is low, as 0.0% of loans were by investors. 11.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 36 |
% Conventional Loans | 67.0% |
% Government Loans | 33.0% |
% Investor Loans | 0.0% |
% Second Loans | 11.0% |
% Cash Out Refinance | 11.0% |
Loan Activity
Rentals and Section 8 — Palacios, TX
Palacios, TX lacks sufficient Section 8 program data for analysis.
Section 8 Market Size
Total Units under HUD | 104 |
Total Units Section 8 | 60 |
% Rentals under Section 8 | N/A |
% Occupied Section 8 | N/A |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | N/A | N/A | $840 |
| 2 Bedroom | $90 | $950 | $1,040 |
| 3 Bedroom | -$460 | $1,800 | $1,340 |
| 4 Bedroom | -$1,240 | $3,000 | $1,760 |
Affordability — Palacios, TX
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 2.8 |
| Median Home Price | $181,000 |
| Median Household Income | $69,500 |