Killeen: A Military Retirement Community That Reshaped Central Texas
Fewer Soldiers On Post · Far More People In Town
When I arrived in Killeen in 1990, the city had about 63,500 residents. Today it is closing in on 163,500 — yet Fort Hood has fewer active-duty soldiers than it did back then. This is the story of how a military retirement community quietly became one of the fastest-growing corners of Texas.
The Growth Story Behind Killeen
Drive down Fort Hood Street today and it is hard to picture the smaller town that sat here a generation ago. In the 1990 census, Killeen counted 63,535 residents. By 2026, estimates put the city near 163,500 — and the surrounding Killeen-Temple metro area has pushed past half a million people. That is a city that has grown roughly two and a half times over in about thirty-five years.
Here is what surprises newcomers: the growth did not come from stacking more soldiers onto the post. Fort Hood has fewer active-duty troops today than it did during its Cold War and Gulf War peak. So if the base did not get bigger, what filled all those new neighborhoods in Killeen, Harker Heights, and Copperas Cove? The short answer is people who came for the Army and decided to stay for the life. Killeen matured into a genuine military retirement community, and that shift changed the whole region.
This article walks through the numbers — population, troop strength, and Fort Hood's economic weight in Texas — and then unpacks the real reasons the area keeps growing. Everything here is drawn from public data, including the U.S. Census Bureau and the Texas Comptroller's 2025 military installations report. If you are ready to make a move in this market, Homevets Realty is your local, veteran-owned team.
Killeen’s Population, 1990 to 2026
A steady climb from a mid-sized Army town to one of the larger cities in Central Texas.
Killeen added more than 100,000 residents between 1990 and today. The fastest stretch came in the 1990s and 2000s, and growth has continued at a steadier pace since. The wider metro — Bell, Coryell, and part of Lampasas counties — sits above 501,000 people as of the latest estimates.
The Post Got Smaller. The City Got Bigger.
Two lines that moved in opposite directions — and the gap between them is the story.
Soldiers On Post
Fort Hood has long anchored III Corps and, for years, two full Army divisions. At its mid-2000s peak the installation counted roughly 50,000 personnel. Today the active-duty population is around 34,000 — a leaner post than the one many of us remember from the 1990s.
People In The Area
Meanwhile the city kept expanding. New rooftops in south Killeen, Harker Heights, and Copperas Cove filled with veterans, retirees, military families, civilian workers, and newcomers priced out of Austin. The result is a military retirement community that grew even as the uniformed count fell.
A base with fewer soldiers but a bigger surrounding city tells you the economy is no longer just about the current formation on post. It is about the people who cycle through Fort Hood and choose to put down roots — and the businesses, schools, and healthcare that grow up to serve them.
The Retirees Who Never Left
Ask around Killeen and you will meet retired first sergeants running small businesses, former warrant officers coaching youth sports, and Gulf War veterans on their second or third career. That is not an accident. More than 126,000 military retirees use Fort Hood's facilities — one of the largest concentrations of retired service members anywhere in the country.
Every year, a fresh class of soldiers reaches twenty years and retires. A meaningful share of them look around, realize they already have a home, a network, and benefits anchored right here, and simply stay. Multiply that decision across decades and you get the backbone of a military retirement community — a population that keeps buying homes, filling jobs, and spending in the local economy long after the uniform comes off. It is the single biggest reason Killeen kept growing while the active-duty count did not.
At Homevets Realty, this is the community we come from and the one we serve. We help retiring soldiers buy the home they will stay in, and we help longtime retirees sell and right-size when the time comes.
Five Reasons Veterans Retire Here
The benefits that turn a duty station into a permanent home — and keep the military retirement community growing.
No State Income Tax
Texas does not tax income — including military retirement pay. For a retiree living on a pension, keeping that full check stretches a fixed income much further than it would in most other states.
Healthcare On Post
Carl R. Darnall Army Medical Center sits right on Fort Hood, with a broader VA presence across Central Texas. Staying near that care is a deciding factor for many retirees and their families.
Commissary & Exchange
Retirees keep access to the on-post commissary and exchange. Those everyday savings, plus base services, are a practical reason to live within reach of Fort Hood rather than farther away.
Affordable Cost Of Living
Housing and daily costs in Killeen run well below the national average and a fraction of Austin's. A pension buys a comfortable, low-stress lifestyle here — a major draw for a military retirement community.
A Community That Gets It
Perhaps the biggest reason of all: people here understand deployments, PCS moves, and service life. Friendships, churches, and veteran networks make it easy to belong long after retirement.
Central Texas Location
Killeen sits between Austin and Waco with quick access to the US-190 and Interstate 14 corridor, plus Austin's airport. Retirees get small-city affordability without being cut off from big-city amenities.
What Fort Hood Means To Texas
Fort Hood is not just a Killeen story. It is one of the largest economic engines in the entire state.
According to the Texas Comptroller's 2025 military installations report, Fort Hood generated an estimated $37.9 billion in economic output and supported nearly 159,700 jobs across Texas — more than a quarter of the total impact from every military installation in the state combined. The report describes the post as one of the state's most powerful economic locomotives, and the numbers back it up.
That impact reaches far beyond the fence line. Payroll from active-duty soldiers, civilian employees, and defense contractors flows into local businesses. Retiree pensions and spending add a second, steady layer. And every home bought, leased, and sold around the post feeds the Central Texas economy. When people ask why Killeen keeps building, the honest answer is that the military retirement community and the base together form an economic base most cities its size could only dream of.
Other Forces Feeding The Growth
The military is the foundation — but several other trends have accelerated the area's rise.
The Austin Spillover
As Austin and Round Rock became some of the most expensive housing markets in Texas, buyers started looking north. An hour up the highway, Killeen, Harker Heights, and Belton offer newer homes at a fraction of the price. That affordability gap has pulled in commuters, remote workers, and families who never wore a uniform but wanted more house for their money.
Education & Healthcare
The region grew up institutionally, too. Texas A&M University-Central Texas gave the area a four-year public university, keeping students and graduates local. Healthcare systems including Baylor Scott & White expanded across Bell County, adding thousands of stable, well-paying jobs that are not tied to troop levels at all.
Roads, Retail & Rooftops
Better highway access along the US-190 and Interstate 14 corridor opened up land for new subdivisions and retail. Where there were once open fields, there are now master-planned neighborhoods full of veterans and young families. Each wave of rooftops brings the shopping, restaurants, and services that make the next wave possible.
Put it all together and the picture is clear. Fort Hood remains the anchor, the military retirement community is the steady engine, and Austin's overflow, a growing university, and expanding healthcare are the accelerants. That combination is why the Killeen area outgrew its own base — and why it is likely to keep growing. If you are thinking about buying or selling in this market, our seller's guide and local team are a good place to start.
You may see the post called Fort Cavazos in older records. In 2025 the installation was officially redesignated Fort Hood once again, this time honoring Colonel Robert B. Hood, a World War I soldier. Locally, most people never stopped calling it Fort Hood.
Thinking About Buying Or Selling Near Fort Hood?
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Killeen Growth & The Retirement Community, Explained
Killeen sits next to Fort Hood, one of the largest Army posts in the country, and roughly 126,000 military retirees use the installation's facilities. Many service members who trained or were stationed here choose to retire in the area to keep their commissary, exchange, and medical benefits, take advantage of Texas having no state income tax, and stay near a community that understands military life. That concentration of retirees is a big reason Killeen functions as a military retirement community.
Killeen had about 63,500 residents in the 1990 census. By 2026 the population is estimated near 163,500 — roughly two and a half times larger in about 35 years. The broader Killeen-Temple metro area, which includes Harker Heights, Copperas Cove, Belton, and Temple, is now above half a million people.
Yes. Fort Hood's active-duty count today is around 34,000 soldiers. In peak years — such as the mid-2000s — the post counted roughly 50,000 personnel, and it has historically hosted two full divisions plus III Corps. So the active-duty population is lower than at its peak, yet the surrounding cities have kept growing, largely because of retirees, veterans, civilian jobs, and regional expansion.
According to the Texas Comptroller's 2025 military installations report, Fort Hood generated an estimated 37.9 billion dollars in economic output and supported nearly 159,700 jobs across Texas — more than a quarter of the total economic output from all military installations in the state. That makes it one of the single largest economic engines in Texas.
For many veterans, yes. The cost of living is well below the national average, there is no state income tax on retirement pay, and the area offers on-post medical care at Carl R. Darnall Army Medical Center plus a nearby VA presence. Housing is affordable relative to Austin and most of Texas, and the community is built around people who share a military background. As with any move, it is worth weighing job options, healthcare needs, and proximity to family.
Several things. The Austin metro's high prices push buyers north into more affordable Central Texas. The region added higher education with Texas A&M University-Central Texas, expanded healthcare through systems like Baylor Scott & White, and improved highway access along the US-190 and Interstate 14 corridor. Together with the steady military and retiree base, these factors keep Killeen, Harker Heights, Copperas Cove, and Belton growing.
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From A Duty Station To A Hometown
We have watched Killeen grow from a 63,000-person Army town into the thriving military retirement community it is today — and we have helped thousands of families plant roots here since 2005. Let us help you find yours.