Investment Breakdown
Laredo has a price-to-rent ratio of 16.6x, which indicates buying is moderately favorable.
The estimated cap rate of 2.2% is below average, typical of appreciation-focused markets.
Year-over-year price growth of +2.5% indicates stable market conditions.
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Price Forecast 2026โ2028
๐ฎ Laredo Price Forecast 2026โ2028
For those evaluating a Laredo housing market forecast through 2028, the city appears poised for steady, moderate growth rather than dramatic shifts. Currently, the median home price sits at $216,919, with annual appreciation holding at 2.2%โa pace that aligns with its five-year CAGR of 3.2%. This stability is underpinned by a Price-to-Rent Ratio of 18.4x, which is nearly in line with the national average, suggesting that while buying isn't a screaming bargain, it's not prohibitively expensive relative to renting either. The market's temperature reads 53/100, indicating a balanced environment where neither buyers nor sellers hold a decisive edge.
When asking will Laredo home prices drop, the underlying fundamentals suggest a "no" answer, barring a major economic shock. Laredo's economy is heavily anchored to international trade via its sprawling port of entry, which provides a unique buffer against domestic downturns. This stability, combined with a 5-year price change of 17.5% and a strong Risk Grade: A-, points to resilience. Affordability remains a key draw, with median rent at just $881/month, attracting a steady stream of residents and keeping demand consistent. Properties are moving in 72 days on market, indicating healthy transaction velocity without the frenzy of overheated markets.
Looking ahead to Laredo real estate Laredo 2027, the forecast hinges on continued cross-border commerce and population stability. The NEUTRAL buy/rent verdict reflects that while prices are unlikely to fall, explosive growth is also off the table; expect values to gently climb within the recent $184,660 โ $217,358 range. Investors should watch for infrastructure developments or shifts in trade policy that could alter the economic landscape. Ultimately, Laredo presents a low-volatility, income-oriented market suitable for patient capital, rather than a speculative play. The most probable scenario is a slow, methodical appreciation that mirrors its historical performance.
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* Estimates based on 2.5% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.
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Investment Summary
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.
Last updated: March 2026