Say Goodbye to Cheap Texas Housing: Four Major Cities Are Booming

Say Goodbye to Cheap Texas Housing: Four Major Cities Are Booming

If you're considering buying property in Austin, Dallas, Fort Worth, or San Antonio, you will need much deeper pockets than you did less than a decade ago. According to the Housing Opportunity Index published by the National Association of Home Builders/Wells Fargo, less than 33% of homes in those metro areas are affordable (down from 60% in 2014).

What happened?

Real estate prices in these areas have increased largely due to demand exceeding supply. Since many professionals can work remotely, people are moving to Texas in record numbers. In addition, as the country imposed fewer COVID-19 restrictions, it saw a 60% increase in immigration in the 15 months immediately after the onset of the pandemic.

Additionally, while the Federal Reserve does not set mortgage interest rates, recent interest rate hikes by the institution have indirectly made home financing more expensive. The Fed raised the rate by 4.75 percentage points between March 2022 and March 2023 - and on May 3 - another 25 basis points.

Here is an example of how these factors may affect:

According to the Home Ownership Affordability Monitor from the Federal Reserve Bank of Atlanta, the median home price in the Austin-Round Rock area in February 2023 was about $440,000. The accompanying monthly mortgage payments were about $3,450.

Five years ago, in February 2018, the numbers were around $284,000 and $1,980, respectively. Unfortunately, such a huge price jump puts homeownership out of reach for many optimistic buyers.

There is good news for the Texas housing market.

Fortunately, experts don't expect to see a cascade of foreclosures in the state. In general, current homeowners in Texas are in a much better place than they were during the Great Recession 15 years ago. They have a fair amount of equity, a solid credit profile, and a low-interest-rate mortgage.

Additionally, while some areas of Texas may be heading toward a housing crisis, 14 of the 50 best places to buy a home under $250,000 are located in the Lone Star State, including:




Corpus Christi.

El Paso.





Mac Allen.




Wichita Falls.

If you want to reside in Texas on a budget, know it is possible for many homebuyers. In addition, even the most expensive metros are still cheaper than many coastal cities in the country.

0/Post a Comment/Comments