The I-35 expansion through Waco, West, and Hillsboro is a multi-phase TxDOT project running through early 2029 that will widen the corridor to three or four lanes each direction. Near-term construction causes temporary disruptions, but the long-term effect on commute reliability and property demand along this stretch of Central Texas is significant for buyers and sellers making decisions today.
How will the I-35 expansion affect real estate in Waco, West, and Hillsboro?
The I-35 corridor widening through Central Texas is a multi-phase TxDOT project actively under construction as of August 2026, with full completion of the Waco South segment expected in early 2029. The expansion will bring three to four lanes in each direction from Hillsboro through Salado, improving commute reliability between Waco, DFW, and Austin. For buyers and sellers, that means navigating near-term construction disruption while positioning for long-term access gains that will reshape demand along this corridor.
What the Expansion Actually Looks Like on the Ground
This isn't a future plan. It's active construction, and if you've driven through Waco recently, you've felt it.
The My35 Waco South project broke ground on February 24, 2025, and carries a price tag of $234 million for just a three-mile stretch through south Waco. According to KWBU, northbound lanes in that segment are projected to be completed in 2027, with full project completion expected in 2029. That's the key date to hold onto: 2029 is when the full benefit of this investment becomes real for commuters.
Right now, the construction is structured around lane flips and phased closures. In August 2026, TxDOT scheduled the demolition of the South Valley Mills Drive direct connect flyover, with full closures of both directions of I-35 between 12th Street and New Road, routing through-traffic to South Loop 340, Business 77, and the frontage roads. These are temporary impacts, not permanent patterns. But if you're buying near South Waco or Valley Mills Drive right now, you need to know what the next few years look like before you sign anything.
The Waco South project isn't the first phase of this work. The I-35 Project 4B Waco North segment, covering roughly six miles, began in Spring 2019 and was anticipated to wrap in Spring 2024 at a cost of about $341.2 million. TxDOT describes the current Waco South work as the final stage of expanding I-35 from Hillsboro through Salado to a minimum of three lanes each direction, with the Waco core expanding to four lanes each way through key stretches.
What the finished corridor will look like
When this is done, I-35 between Hillsboro and Salado will be a fundamentally different road. More lanes, reconfigured interchanges, rebuilt flyovers, and modernized frontage road connections. For communities like West and Hillsboro, that means more reliable access to Waco's employment base and more predictable commute times toward DFW to the north and Austin to the south. That's not a guarantee of any specific commute time, but it is a meaningful capacity and reliability upgrade from what existed before.
As the 2025 TxDOT briefing covered by KWBU noted, drivers will experience shifting lane patterns for several years as the project phases through, with the final traffic flip and full opening expected by 2029. Anyone buying or selling near this corridor between now and then needs to factor that timeline into their decision.
What This Means If You're Buying or Selling Today
The current Waco market in context
Before connecting the highway project to property values, it helps to know where the market actually stands. According to a mid-year 2026 review from Stacker, the Waco housing market is showing a median sale price of about $284,919, essentially flat year-over-year, with active listings around 1,540 and about 5.4 months of supply. Median days on market sit around 68.6, and roughly 25.4% of homes are selling within two weeks, suggesting a mix of quick movement in popular segments and more negotiating room on others.
Data from Redfin covering the three months ending June 2026 shows a median sale price of about $270,000, down roughly 3.6% compared to the same period a year earlier, with homes selling in an average of 53 days versus 65 days the prior year. For context, the Federal Reserve Bank of St. Louis house price index for the Waco MSA shows relatively stable values through Q4 2025, the most recent official data point available as of August 2026.
The picture that emerges is a near-balanced market: not a seller's frenzy, not a buyer's fire sale. Prices are holding, inventory is moderate, and homes are moving a bit faster than last year. That's actually a reasonable backdrop for making a long-term move tied to infrastructure investment.
Metric | 2025 Annual (Baseline) | Mid-2026 (Most Recent) |
|---|---|---|
Median Sale Price | ~$282,921 | ~$284,919 |
Median Days on Market | ~75.7 | ~68.6 |
Months of Supply | ~5.8 | ~5.4 |
Active Listings | ~1,295 (monthly) | ~1,540 |
Sources: Stacker 2025 year-in-review and Stacker mid-2026 review. Market-color data, not official statistics.
Buying near I-35 during active construction
The honest answer is: it depends on which part of the corridor and what you're buying it for.
If you're looking in South Waco near Valley Mills Drive or along the frontage roads, you're buying into a construction zone for the next two to three years. Weekend closures, overnight noise, and shifting detour routes are part of the deal right now. That's not a reason to walk away, but it's a reason to price the near-term inconvenience into your offer and think carefully about resale timing. The FOX44 report on the My35 Waco South next phase confirms that construction activity in that area is intensifying, not winding down.
If you're looking in West or Hillsboro, the construction impact on your daily life is less direct. West sits north of the most active Waco South work, and Hillsboro's position at the I-35 split toward Dallas and Fort Worth means it benefits from the full corridor build-out without being at the center of the current disruption. For buyers thinking about a longer hold, that positioning matters. I walk clients through exactly this kind of location-specific analysis before we start making offers, because the right home in the wrong location for your commute and your timeline can cost you more than the purchase price suggests.
If you're new to the West, TX market, the First-Time Home Buying Guide for West, Texas on our site covers the local landscape in detail.
Selling near I-35 right now
The question I hear from sellers near the corridor is whether to wait until 2029 when the project is done. My honest answer: waiting three years to list is rarely the right call, and the market doesn't work that way anyway.
What matters more is how you position the property. A home near an active construction zone needs to be priced to reflect current conditions, not future ones. Buyers can see the construction. They know what the next few years look like. If your listing is priced as if the highway is already finished, you'll sit. Price it accurately for today, market the long-term upside clearly, and you'll attract the right buyer who's thinking about where this corridor is headed.
Waco's position between DFW and Austin on I-35 makes it a natural candidate for spillover demand as those metro areas continue to grow. That's the story a well-positioned listing tells. But the story has to be grounded in real numbers, not wishful thinking. Your specific situation, including your location relative to active construction, your home's condition, and your timeline, determines the right strategy. That's a conversation worth having before you decide anything.
If you hold acreage or farm property in the Hillsboro area, the infrastructure investment adds another layer to that conversation. Our post on selling acreage and farm properties around Hillsboro covers what that market looks like right now.
Waco vs. West vs. Hillsboro: How the Corridor Plays Differently
These three communities sit on the same highway but serve different roles in the corridor story.
Waco is the regional hub, with the most employment, services, and amenities, and also the most active construction impact right now. The My35 Waco South project runs through 2029, and buyers here need to think about which part of the city they're in relative to the active work zones.
West functions as a bedroom community for Waco and, for some residents, a staging point for DFW-bound commutes. It has a small-town feel with direct I-35 access. The lane expansions between Hillsboro and Waco are designed to improve reliability for exactly these commuters over the long term, and the construction impact on daily life in West is less acute than in south Waco right now.
Hillsboro sits at the junction where I-35 splits toward Dallas and Fort Worth, giving it a strategic position for buyers who need flexible commute options in either direction. TxDOT's documents consistently identify the Hillsboro-to-Salado segment as a priority for full multi-lane build-out, which means Hillsboro stands to gain from the completed corridor even as it currently sits outside the most disruptive construction phases.
The right community for any buyer depends on their employment situation, commute direction, and how much they weight near-term convenience versus long-term positioning. That's not a question a blog post can answer for you, but it's exactly what I help buyers work through before they commit to a neighborhood.
For broader context on what's driving demand across the region, our post on how Waco job growth is influencing local home prices connects the employment picture to what's happening in the market.
Frequently Asked Questions
How will the I-35 expansion affect my daily commute over the next few years?
Between now and 2029, expect lane shifts, periodic overnight closures, and detours, particularly in the Waco South corridor between 12th Street and New Road. The City of Waco and TxDOT are routing through-traffic to South Loop 340, Business 77, and frontage roads during closures. The long-term outcome, once construction wraps, is a corridor with three to four lanes each direction from Hillsboro through Salado, which should meaningfully improve capacity and travel reliability.
Is it a good idea to buy near I-35 in Waco or West while construction continues through 2029?
It can be, but the answer depends heavily on which specific area you're buying in and what your timeline looks like. Homes adjacent to the most active construction zones in south Waco may face noise and detour impacts for two to three more years. Buyers in West or Hillsboro are further from the current disruption. The key is pricing the near-term reality accurately and buying for a timeline that lets you capture the long-term access improvements. A local market analysis of the specific property and location is the only way to know if the numbers make sense for your situation.
Will the I-35 widening make my property more valuable long-term?
Infrastructure investment on a major corridor historically supports property values by improving access and attracting demand, but no one can guarantee a specific appreciation outcome. Waco's position between DFW and Austin makes it a natural beneficiary of spillover demand as those markets grow, and improved corridor reliability strengthens that case. The most recent official data from the Federal Reserve Bank of St. Louis Waco MSA house price index shows stable values through Q4 2025. Whether your specific property benefits depends on its location, condition, and how the broader market moves between now and completion.
What should buyers know about noise and traffic near an expanded I-35?
During active construction, expect intermittent noise from overnight and weekend work, shifting lane configurations, and detour routing through frontage roads and alternate highways. After completion, TxDOT corridor projects typically result in more predictable traffic patterns, and reconstruction often includes updated sound barriers and interchange configurations. If you're buying within a few blocks of the interstate, factor in both the construction phase and the long-term noise environment when evaluating the property. I always recommend driving the route at different times of day before committing.
Should I wait to sell my home near I-35 until the project is closer to finished?
Waiting until 2029 to list means sitting out three years of potential equity and market movement. A better approach is to price your home accurately for today's conditions while marketing the long-term corridor improvements as a genuine selling point. Mid-2026 data shows the Waco market at roughly 5.4 months of supply and a median of about $284,919, which means there are active buyers in this market right now. The right pricing strategy for your specific location near the corridor is something I can walk you through with a current market analysis.
How does current I-35 construction affect how quickly homes are selling?
Mid-2026 data shows Waco homes averaging about 53-68 days on market depending on the source and sub-period, which is actually faster than the 75.7-day average seen in 2025. About 25.4% of homes are selling within two weeks, according to the Stacker mid-2026 review. The market isn't stalled by construction, but homes closest to active work zones may see longer days on market if they're not priced to reflect current conditions. Location within the corridor matters more than the construction project as a whole.
The I-35 expansion is the kind of long-cycle infrastructure investment that reshapes real estate decisions for years. Understanding where you are in that cycle, and what it means for your specific property or search, is the work. If you're buying or selling anywhere along this corridor, I'm happy to run through the numbers with you and give you a straight answer on what today's market looks like for your situation.
Schedule a consultation with Katie and the WestLand Realty Group team to get a personalized market analysis for your home or search area along the I-35 corridor.
Equal Housing Opportunity. Katie Miller is a licensed Broker Associate in Texas, affiliated with Real Broker LLC, regulated by the Texas Real Estate Commission. This article is general information only and does not constitute legal, tax, or financial advice. Confirm your own numbers with your attorney, tax advisor, lender, or closing officer. Texas Real Estate Commission Consumer Protection Notice and Information About Brokerage Services are available upon request.
