Texas is a hotspot for real estate. No matter where you go, you will see a real estate agent making millions of dollars. Why is it a hotspot? Well, Texas has a great economy and low taxes.
In texas, you just need to pay 6.25% of tax. And it is much lower than any other state of us. That’s why so many people are eager to call it home.
But that’s not the only case. There are a few more facts, too, that make Texas a unique spot. What are those? Let’s get the inside of it
Main facts
- Texas is 2nd largest state in the US.
- Texas covers 7% of land and water.
- Texas’s economic growth has grown by 5.7% since 2023 and is still growing.
Size and Geographic Diversity
Texas is massive—it’s the second-largest state in the U.S., which means tons of variety in real estate. You can find everything to buy from urban apartments in bustling cities to quiet country homes on acres of land.
Texas has a vast and diverse geography, covering around 7% of the total land and water area of the United States. With a total area of 268,820 square miles, it’s the second largest state, right behind Alaska.
This variety in geography gives Texas its unique landscapes, from plains and hills to mountains and coastline. Make it perfect for investors.
Population Growth and Economic Boom
Texas has experienced impressive economic growth, with a rate of 5.7% in 2023—more than double the national average. While growth is expected to moderate in 2024, the state will still likely outpace the national economy.
Since 1997, Texas’s GDP has surged by 115%, ranking it fourth in the nation. Its GDP per capita rose by 39% to $62,483, placing it 16th overall.
The state’s economy has become more diverse and resilient over the years. After the oil bust of the 1980s, Texas shifted to a service-oriented economy.
It allows to weather downturns, including the challenges posed by COVID-19 and falling oil prices in 2020. Texas continues to thrive, showcasing its ability to adapt and grow.
And about population-
Texas is leading the nation in population growth, adding nearly half a million people in just the last year.
According to recent estimates from the U.S.
Census Bureau. Out of the 1.6 million people who moved to the U.S. between July 2022 and July 2023, almost 30% are now calling Texas home.
This influx of 473,453 people contributed to Texas’ impressive growth rate of 1.6%, making it the third-highest in the country, right behind South Carolina and Florida.
Do you know what it is mean? It means-
More demand = competitive market for sellers
No State Income Tax and Low Property Taxes
One of the biggest draws of living in Texas is the absence of a state income tax. This means residents get to keep more of their hard-earned money. It makes an attractive option for both sellers and cash buyers.
In addition to that,
Texas has relatively low property taxes compared to other states. This combination makes owning a home more affordable and encourages people to move to the state.
For sellers, these financial benefits can lead to a more active real estate market, as buyers are eager to take advantage of the lower living costs in Texas.
Top Investment Locations in Texas
Frisco is a shining star among Texas cities. Its rapid growth has made it one of the hottest real estate markets in the state. Frisco is known for its excellent public schools, safe neighbourhoods, and abundant parks. It is perfect for families looking for a supportive environment.
And Economic Growth is super strong here. With a strong job market and numerous corporations relocating to the area, including major companies like Toyota and Liberty Mutual, Frisco continues to see a surge in population and economic activity.
Austin, the capital of Texas, is a vibrant city that’s truly a hotspot for real estate investment.
Known as “Silicon Hills,” it’s home to tech giants like Dell and Oracle, meaning plenty of job opportunities bring in professionals and boost housing demand.
The city’s cultural scene is alive with live music, food festivals, and outdoor activities, making it attractive to a diverse crowd, especially young professionals and creatives. Austin really offers something for every type of investor!
Fresno, TX, is a rapidly growing city known for its family-friendly vibe and excellent schools. It attracts both young professionals and families. With a vibrant community, parks, and shopping centres, Fresno is a hot spot for real estate investment, fueled by companies like Toyota relocating to the area.
Fresno, TX, an emerging suburb of Houston, combines affordability with a community-oriented atmosphere. It’s ideal for families seeking a quieter lifestyle and is experiencing rising demand for housing as more people move to the area.
Tanglewood in Fort Worth is an upscale gem that stands out for several reasons! First off, its location is super convenient—you’re just a hop away from major highways. It makes it easy to commute to downtown Fort Worth and beyond.
It’s also close to great schools, parks, and recreational facilities, a big plus for families. The lovely neighborhood features spacious homes with beautiful landscaping that gives it a luxurious vibe.
Residents here enjoy a strong sense of community, with local events and activities that help neighbors connect and build friendships.
And let’s not forget the rising property values!
As Fort Worth continues to grow, Tanglewood’s desirable location and quality homes make it a fantastic choice for anyone investing in real estate. Overall, Tanglewood is a perfect place to invest.
Market Seasonality and Trends
- The Texas housing market remains active in 2024, with significant trends impacting single-family residence (SFR) investors and mortgage lenders.
- Inventory levels have risen significantly, showing a 38.8% year-over-year increase.
- Active listings are up 8.8% compared to last month, indicating a potential cooling from the previous seller’s market.
- Median list prices have increased by 0.2%, while sales prices are up by 3.3% year-over-year.
- Growth rates are slowing, suggesting a stabilization in pricing after rapid appreciation.
- The median time for a home to go under contract has risen by 2.6% year-over-year, reflecting a more balanced market.
- The number of listings with price drops has increased by over 54% yearly, indicating sellers’ adjusting strategies in a changing market.
Outro
As we move through 2024, the Texas housing market is full of opportunities for investors and lenders alike. With rising inventory and changing price trends, staying informed is essential. You can invest in Texas and enjoy a beautiful lifestyle without a second thought.
