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How I-35 Growth Is Shaping Temple and Salado Home Values

November 21, 2025

Thinking about how the I-35 corridor is changing your options in Temple or Salado? You are not alone. As travel times shift and access improves, buyers widen their search radius and sellers gain new pricing leverage. In this guide, you will learn what the highway work means for values, timing, and strategy on both sides of the transaction. Let’s dive in.

Why I-35 projects matter locally

I-35 is the spine of Central Texas growth, and Temple and Salado sit right on it. When TxDOT adds capacity or rebuilds interchanges, it usually shortens peak-hour delays and makes day-to-day driving easier. That pulls more buyers toward neighborhoods with strong access and increases developer interest around key exits.

You typically see three shifts after meaningful improvements:

  • Larger buyer pools as commuters from Austin, Waco, and Killeen consider Temple and Salado for value and lifestyle.
  • Faster activity near interchanges because access to jobs, shopping, and healthcare improves.
  • New construction momentum in Temple and tighter, premium-priced inventory in Salado.

What kinds of projects move the market

  • Lane additions and managed lanes that increase throughput and trim commute minutes.
  • Major interchange reconstructions that reduce bottlenecks and improve ingress and egress.
  • Frontage road and local access upgrades that shorten trips to schools, shopping, and services.
  • Safety and aesthetic enhancements such as noise barriers and landscaping that help neighborhood appeal.

What is changing and when it matters

Highway projects move through stages, and each stage affects the market differently.

  • Early design and right-of-way: Developers assemble land near planned interchanges and start new plats. If you want a new build, this is when options expand.
  • Active construction: Noise, dust, and detours can dampen buyer enthusiasm. Some sellers wait for stabilization, while value buyers hunt for opportunity during this phase.
  • Completion or clear completion windows: This is when buyers pay premiums for confirmed time savings, and inventory can tighten as new demand arrives.

If you plan to buy or sell near a specific exit, keep tabs on project limits and expected completion windows through TxDOT and local city or village planning pages. Align your timeline with visible milestones like major ramp openings rather than rough project start dates.

Temple vs. Salado: how values respond

Temple and Salado benefit from the same corridor, but they react differently because of size, land supply, and identity.

Temple: volume and new builds

Temple’s medical and military-adjacent economy provides steady housing demand. With city utilities and available subdivisions, Temple typically sees more sales volume and a higher share of new construction. As I-35 travel becomes more reliable, budget-conscious buyers from larger metros broaden their search, which supports mid-price ranges and encourages builders to deliver more product.

Expect these patterns in Temple:

  • More choices in new construction, often near key interchanges and employment centers.
  • Strong rental demand around medical and logistics hubs, which can draw investors.
  • Pricing that responds to commute improvements as buyers trade a longer drive for lower costs.

Salado: scarcity and premiums

Salado is smaller, historic, and supply constrained. Many buyers come for village character, arts and dining, and a relaxed lifestyle with quick north-south access. With fewer large subdivisions and tighter development controls, inventory often runs lean, and character properties can command premiums.

Expect these patterns in Salado:

  • Low inventory and quicker movement when listings are well presented and well located.
  • Premiums for homes that offer charm, privacy, or acreage while maintaining convenient I-35 access.
  • Buyers prioritizing lifestyle and quiet streets, with careful attention to set-backs and noise mitigation near the corridor.

Buyer guide: making I-35 work for you

You can use corridor growth to your advantage with a focused plan.

Choose the right micro-location

  • Interchange-adjacent neighborhoods often sell faster because access is easy. If you want value, look a few miles off the main exits where competition can be lighter.
  • In Temple, compare commute tradeoffs across multiple interchanges. A five-minute difference in peak traffic can mean a better price on a similar floor plan.
  • In Salado, weigh village core convenience against privacy and lot size just outside the center.

Time your purchase around milestones

  • Buying 6 to 18 months before a major interchange completion can help you secure pricing before premiums set in.
  • If heavy construction is in full swing by your target home, consider inspecting twice: once during a busy period and again after a major detour ends, so you can gauge long-term noise and access.

New construction vs. resale

  • New builds cluster near improved access and may offer modern energy features and warranties at a modest premium. Ask about HOA fees, tax rates, and future phases that could affect views and traffic.
  • Resales can deliver larger lots, established trees, and mature landscaping. Near I-35, pay special attention to window quality and fencing for sound buffering.

Due diligence checklist near I-35

  • Review right-of-way maps and planned ramp locations to confirm future proximity.
  • Ask about any planned noise barriers or landscaping and whether they are already funded.
  • Confirm neighborhood access during construction and after completion to understand true travel time.
  • For acreage or equestrian needs, verify access for trailers, turn-around space, and fencing setbacks.

Seller strategies: capture the corridor premium

If you own a home near improved access, thoughtful timing and presentation can boost your outcome.

Decide when to list

  • If construction is disruptive, weigh listing now to catch broad demand or later when the project stabilizes and commute benefits are obvious.
  • If your location provides quick access without direct highway exposure, you may benefit from waiting until completion highlights your advantage.

Price and present for access benefits

  • Spotlight real-world commute minutes to major employment centers and hospitals.
  • If close to I-35, emphasize quiet features like set-backs, masonry fencing, upgraded windows, and mature landscaping.
  • Provide a simple map showing the nearest interchanges, shopping, and services.

Market to multiple buyer profiles

  • Professionals tied to healthcare and logistics value predictability and access.
  • Investor buyers look for strong rental demand and low vacancy near employment corridors.
  • Lifestyle buyers in Salado respond to village amenities, walkability to dining and arts, and the blend of small-town charm with regional connectivity.

Neighborhood and property types to watch

Interchange-adjacent subdivisions

These often see faster days on market because daily driving is easier. New phases can add short-term competition for resales, so sellers should lean into condition and marketing quality. Buyers should compare builder incentives with resale pricing in the same school assignments.

Historic Salado village core

Inventory is limited and highly sought for character and convenience. Pricing often reflects scarcity and lifestyle draw. Buyers may need flexible timelines and strong pre-approval to compete.

Acreage and farm and ranch near the corridor

Peripheral tracts can benefit from improved access while maintaining privacy and space for equestrian uses. Rezoning or annexation can change value over longer timelines, so confirm utilities, water, and access easements before you bid. Sellers can reach wider buyer pools by highlighting trailer-friendly access and realistic drive times to regional hubs.

Risks and tradeoffs to weigh

  • Construction nuisances: Dust, noise, and detours can suppress values during active phases. Mitigate with staging, flexible showing windows, and transparent communication.
  • Environmental constraints: Floodplains or protected areas can cap development even when access improves. Verify before final pricing.
  • Long-term traffic: Added lanes can attract more vehicles over time. Homes directly adjacent to the highway can face more noise even as regional access improves.
  • Market cycles: Interest rates and broader housing trends still matter. Separate corridor-driven effects from national cycles when you set price expectations.

How to track real-time signals

To keep your plan current, monitor a few leading indicators:

  • Local MLS updates for median sale price, days on market, and inventory. Always note the time frame, such as the most recent 12 months.
  • Permits, plats, and utility extensions that hint at near-term supply.
  • Employer announcements along the corridor, especially healthcare expansions, logistics hubs, and distribution centers that create steady housing demand.
  • TxDOT and local planning pages for segment-specific construction milestones.

The bottom line

I-35 improvements are expanding the practical buyer pool for Temple and Salado. Temple is positioned for more volume and new construction, while Salado’s limited supply often supports premiums for well-located, character-rich homes. If you plan your timing around project milestones and present or pursue the right micro-location, you can turn corridor growth into a clear advantage.

Ready to talk specifics for your property or search? Reach out to Debbie Stevenson for local guidance, new-construction representation, or a free, data-informed home valuation.

FAQs

How is I-35 construction likely to influence Temple home prices?

  • Improved access usually widens the buyer pool and supports pricing near interchanges, while active construction can briefly slow demand on affected blocks.

Will Salado’s small size keep inventory tight even as I-35 expands?

  • Yes, Salado’s village scale and limited developable land often mean low inventory and premiums for well-located homes despite broader corridor growth.

Is it better to buy in Temple before or after a nearby interchange upgrade?

  • Many buyers purchase 6 to 18 months before completion to beat potential price premiums; others wait to confirm noise levels and access after opening.

How should sellers near I-35 in Salado position their listings?

  • Emphasize quick access without highway exposure, highlight quiet features and landscaping, and market village amenities and realistic commute minutes.

What due diligence should buyers do near the I-35 corridor in Bell County?

  • Review right-of-way maps, planned noise barriers, access plans during construction, and any future phases that could change traffic or views.

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