Last year, Texas was the number one state for new house
permits, accounting for 15% of the U.S. total while Texas only accounts for 9% of the U.S.
population.
AUSTIN,
Texas, Feb. 6, 2025 /PRNewswire/ -- Today,
Realtor.com® released a landmark report on housing,
economic, and migratory conditions in Texas over recent years. As the fastest
growing state in the union, this new report examines who is moving
to Texas, why they are coming, and
what makes the Lone Star State an attractive destination for
businesses that choose to invest here.
"The state has grown rapidly in the last several years as people
from across the country and across the world have seen what
Texas has to offer," said
Danielle Hale, chief economist,
Realtor.com®. "In the years since the COVID-19 pandemic,
the Texas economy has boomed,
especially in high-demand industries like technology, education,
manufacturing and construction. Already-scarce housing inventory
from years of under-building was flooded with cash offers, and
listing prices and rents soared. Texas has responded by building more and
smaller homes to meet demand, helping the market settle and housing
inventory climb back to pre-pandemic levels ahead of the nationwide
recovery."
This new report found that the top reasons households move to
Texas from out of state are
because of housing, jobs, and climate.
Who's Coming and Why
More than 1 in 4 people shopping
for homes in Texas, according to
Realtor.com® data, are from out of state. The two
largest sources of immigration to Texas are international migration and
relocation from California.
"The Texas economy is a model
for other states," said Damian
Eales, CEO, Realtor.com®. "Residents are
attracted to Texas first and
foremost for its affordable housing, followed by its favorable
climate and abundant jobs. This has put Texas on a path to potentially become the
largest state by the year 2045. Those are among the many reasons
why at Realtor.com®, we're proud to call
Texas home, as hundreds of our
employees already do."
Texas is Building More
Affordable Homes than the Rest of the Country
Texas was the number one state for new house
permits accounting for 15% of the 2024 U.S. total, punching
well-above its 9% share of the U.S. population.
They say that everything is bigger in Texas, but there's one important exception to
that rule when it comes to housing affordability: new homes. The
median newly constructed home on the market in Texas was 2,073 square feet, down from 2,189
in 2020, a 5.3% decrease. Over this time period, new homes in
the United States at large have
fallen from 2,112 square feet to 2,035, just a 3.6% reduction.
Texas is a proven leader in the
push to build more affordable new homes, and in the last two years,
the share of new builds on the market priced under $350,000 has increased while the shares of new
builds priced from $350,000 to
$750,000 and from $750,000 to $2,000,000 have both fallen.
Eales added, "America is facing a severe housing affordability
crisis, fueled by a staggering shortfall of approximately 4 million
homes. Our Texas report is just
the beginning of a series that will shine a light on the gaps in
our housing supply. By showcasing solutions from states like
Texas and calling attention to
those that are falling behind, we can drive a national conversation
that leads to real, meaningful change."
The Texas Housing Market is More Affordable than the U.S.
Overall
The median-priced home in Texas has been less than the national median
for a considerable time, despite significant recent price growth.
After climbing rapidly during the pandemic, home prices in
Texas have settled slightly as
easing demand and increased inventory relieved some upward price
pressure. As of December 2024, the
median listing price in Texas was
$360,000, roughly $40,000 below the national median.
In 2024, almost half (47.5%) of all for-sale inventory in
Texas was priced at $350,000 or below compared to just 40.1% of
national inventory. Over the past year, inventory growth helped
with affordability, the report found there were 23.3% (roughly
50,000) more homes priced under $350,000 for sale in Texas in 2024 compared to 2023.
Though Texas offers
considerable inventory in lower price tiers, the price distribution
of for-sale homes does not match well to the state's income
distribution. Fifty-one percent of Texans make less than
$75,000 per year, but just 17% of
for-sale inventory is affordable to this income level. Even for
80th percentile earners, making up to $150,000 per year, just 66% of for-sale inventory
is affordable.
Home Buyers Have Options in the Lone Star State
Texas has claimed an increasing
share of U.S. active listings nearly every year since 2016. In
2017, Texas homes made up 7.6% of
all U.S. homes for sale. By 2024, this share climbed to 12.6%. Even
as inventory levels suffered during the pandemic, Texas has managed to offer buyers more options
than much of the country, helping to sustain buyer demand.
Inventory has reached pre-pandemic levels in Texas, relieving price pressure and offering
more time to decide and more options for home buyers. Despite more
home options, buyers still face relatively-high home prices as the
median listing price year-to-date in 2024 is roughly $80,000 higher than the 2019 average, and
mortgage rates remain above 6%. Given the average mortgage rate and
median listing price, the typical monthly housing payment in
Texas was $2,100 in December, assuming a 10%
down-payment.
Texas Stands Out for its Lower Rental Prices
With a
great combination of affordable rental options and abundant job
opportunities, Texas stands out as
an attractive place for renters. In 2024, Austin and San
Antonio were ranked among the top 10 rental markets by
Realtor.com® and Austin, with its blend of affordable rents,
job prospects, and vibrant lifestyle amenities, is also regarded as
the top rental market for recent college graduates.
The median asking rents for 0-2 bedroom units in major
Texas metropolitan markets have
consistently been lower than the average rent in the Top 50 U.S.
markets
Looking to Find an Affordable Home - San Antonio Leads the
Major State Metros
Pre-pandemic, the San Antonio metro area had the largest share
of inventory priced below $350,000,
followed by Houston, Dallas and Austin. In 2024, this order remains the same,
though all four major Texas metros
have significantly smaller shares of lower-priced inventory than
pre-pandemic.
The most expensive area, Austin, has seen the most significant recovery
in lower-priced inventory this year, but remains the least
affordable of the bunch. Austin
also, despite some recovery, saw the largest drop off in affordable
inventory relative to the beginning of the pandemic.
About Realtor.com®
Realtor.com®
is an open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real estate
more than 25 years ago. Today, through its website and mobile apps,
Realtor.com® is a trusted guide for consumers,
empowering more people to find their way home by breaking down
barriers, helping them make the right connections, and creating
confidence through expert insights and guidance. For professionals,
Realtor.com® is a trusted partner for business growth,
offering consumer connections and branding solutions that help them
succeed in today's on-demand world. Realtor.com® is
operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. For more information, visit
Realtor.com®.
Media contact: Mallory
Micetich, press@realtor.com
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SOURCE Realtor.com
