Texas Voted for Change. Here's What It Means for Your Home.
Democrats won every statewide race on Tuesday's Texas ballot, from governor and U.S. Senate down to land commissioner and railroad commissioner. It is the first Democratic statewide win since 1994. Republicans held the Texas Senate, so Austin heads into 2027 with divided government. Here are the facts, the policy differences that matter for homeowners, and what to watch.
A note before we start
We know this election means much more than real estate, for many reasons and to people on all sides. That isn't the point of this post. We've kept it intentionally focused on what the results mean for your home. If you'd like to talk about any of it beyond that, give us a call or let's grab coffee or lunch. We're always happy to have that conversation.
The Results
Top of the ticket
Unofficial, with most votes counted. AP race calls; NBC News and MultiState tallies.
Gina Hinojosa, a state representative from Austin, unseated three-term Gov. Greg Abbott. She is the first Democrat elected governor since Ann Richards in 1990 and the first Latina to lead Texas. James Talarico, also from Austin, beat Attorney General Ken Paxton for John Cornyn's U.S. Senate seat, the first Democratic Senate win in Texas since 1988.
Both Republicans conceded Tuesday night. Early voting set a record for a non-presidential year, with more than 40% of voters casting ballots before Election Day.
Every statewide office changed hands
Governor
Gina Hinojosa
def. Greg Abbott
FlipIncumbent outU.S. Senate
James Talarico
def. Ken Paxton
FlipLieutenant Governor
Vikki Goodwin
def. Dan Patrick
FlipIncumbent outAttorney General
Nathan Johnson
def. Mayes Middleton
FlipComptroller
Sarah Eckhardt
def. Don Huffines
FlipIncumbent outLand Commissioner
Benjamin Flores
def. Dawn Buckingham
FlipIncumbent outAgriculture Commissioner
Clayton Tucker
def. Nate Sheets
FlipRailroad Commissioner
Jon Rosenthal
def. Bo French
FlipThree of these offices matter directly for homeowners. The comptroller issues the revenue estimate that sets how much the Legislature can spend, including on property tax relief, and oversees the state's property tax assistance program. The land commissioner runs the Veterans Land Board home loan programs and disaster housing recovery. And the lieutenant governor presides over the Texas Senate, where every property tax bill has to pass. Goodwin also co-owns a residential real estate business with her husband.
Who controls what in 2027
Governor
Democrat
Veto, appointments, special sessions
Lieutenant Governor
Democrat
Presides over Senate, under rules the Senate adopts
Texas Senate
Republican 19–12
Held overnight. Confirms appointments by two-thirds.
Texas House
Still counting
In the House, Democrats needed 14 flips for their first majority since 2003. By Wednesday morning, six flips had been called and Democrats led in at least a dozen more Republican-held seats. We'll update this post when the chamber is called.
Abbott vs. Hinojosa on Housing
Just the positions that affect homeowners, buyers, sellers, and landlords.
Neither candidate released a detailed homeowners insurance plan.
I don't know if we can get there.
Hinojosa on fully eliminating homeowner property taxes, via the Houston ChronicleBoth sides agree taxes are too high and disagree on who pays for relief. Republicans, including Sen. Paul Bettencourt, argue her plan would shift costs onto businesses that pass them to consumers. Democrats argue Abbott's elimination plan leaves the state owing billions in school funding.
What Changes, and What Doesn't
Texas school homestead exemption
Homeowners 65+ or disabled get an extra $60K, for $200K total. Every increase passed with at least 83% of the vote. Source: Ballotpedia.
- No state income tax. That's in the constitution. Texas voters banned a personal income tax in 2019 (Proposition 4). Adding one would take a two-thirds vote in both chambers plus voter approval. The new leadership can't create one on its own.
- Your exemption stays. The $140,000 exemption is in the state constitution. The election doesn't touch it.
- Relief is bipartisan. Both parties ran on it. The 2027 fight is over how to pay for it.
- Elimination is a long road. It needs the Legislature and likely a voter-approved amendment.
- Investor limits are now on the table, but still need a Republican Senate. Owners of 10 or fewer homes were exempt in the 2025 version.
- Mortgage rates aren't on the ballot. They follow the bond market and the Fed.
Clients have asked: medical marijuana and the THC ban
- Medical marijuana: don't expect a quick change. The Texas Compassionate Use Program continues as it is. No winning candidate ran on a specific plan to expand it, and any expansion would need the Legislature.
- The THC ban: expect a fight. In late July the state health department reclassified most hemp-derived THC, including delta-8 and THCA flower, as a Schedule I drug. Low-dose delta-9 products remain legal, and a federal lawsuit challenging the ban is pending.
- The players changed. Hinojosa voted against the 2025 ban bill (SB 3). Goodwin opposed it and has favored age limits and packaging rules instead. Dan Patrick, who pushed the ban, lost. But Republicans still hold the Senate, and the ban's Senate sponsor plans to file it again in 2027.
- Federal rules are separate. A 2025 federal change narrowing the legal definition of hemp isn't affected by the state election.
What to Watch for Texas Homeowners
If you're buying
- Don't time it on politics. Inventory, rates, and your timeline matter more. Austin buyers still have real choice and negotiating room.
- Budget today's tax bill. Treat future relief as upside, not affordability.
- File your homestead exemption right after closing. See Texas tax exemptions.
- Watch investor limits if you shop starter homes. They could ease competition.
- Don't count the $1,500 yet. It needs the Legislature.
If you're selling
- The waiting is over. Some buyers held off until the result. In our experience, a settled question brings them back.
- Lower carrying costs help you. Buyers qualify on the full payment, taxes included.
- Investor-heavy property? Talk with us about how a restriction could change your buyer pool and timing.
- Protest every year. Policy may change; your rights don't. See how to protest.
What to Watch
Now
The Texas House count. A Democratic majority means a fight over the speaker's gavel and a very different property tax debate.
January 2027
Hinojosa and the new statewide officials take office. The 90th Legislature opens its 140-day session, and Comptroller Eckhardt's revenue estimate sets the budget's ceiling.
Spring 2027
Appraisal notices and protest season. Competing property tax and investor-purchase bills are debated in a Republican Senate.
November 2027
Any property tax constitutional amendment would most likely go to voters here.
2028 and beyond
All 150 House seats and half the Senate are up again. Texas is now genuinely competitive statewide, so expect tax and housing policy to change more often. Plan for a range of outcomes.
Our perspective
We'll be straightforward about where we sit. Several ideas Democrats ran on match what we see in East Austin, especially relief aimed at homeowners rather than businesses and limits on large investors competing with first-time buyers. Some Republican ideas fit too, like faster permitting and predictable appraisal growth. What matters now is execution, and in Texas that still means working with a Republican Senate. We'll keep tracking it here.
Frequently Asked Questions
Will the 2026 Texas election lower my property taxes?
Not right away. Property tax changes require the Texas Legislature, which convenes in January 2027, and larger changes require a voter-approved constitutional amendment. The $140,000 homestead exemption stays in effect.
Can Governor-elect Hinojosa eliminate residential property taxes?
Not on her own. Her plan relies on ending state corporate subsidies, which needs legislative approval, and Republicans kept the Texas Senate. She has acknowledged full elimination may not be achievable.
Could Texas add a state income tax now?
No. The Texas Constitution prohibits a personal income tax, a ban voters approved in 2019. Changing it would require a two-thirds vote of both the House and Senate and approval by voters. It is not part of any plan the new governor ran on.
Will investors be blocked from buying homes in Texas?
Not yet. Hinojosa supports limiting private equity purchases of single-family homes, and her 2025 bill targeted owners of more than 10 homes. Any restriction would need to pass the Legislature, including a Republican Senate.
Should I wait to buy or sell a home in Austin after the election?
For most people, no. State elections don't set mortgage rates, and tax changes are months away at the earliest. Your timeline, inventory, and financing matter more.
Questions About Your Home?
We're happy to walk through what these changes could mean for your property taxes, your purchase, or your sale.
Book a 30-Minute CallResults are unofficial as of Wednesday, November 4, 2026, based on AP race calls and reporting from the Texas Tribune, KUT, KSAT, NBC News, and Houston Public Media. Policy positions are from the campaigns and contemporaneous reporting. More on the Market Perspectives blog, the Buyer Resource Center, and the Seller Resource Center.
