The Texas housing market is thriving with new construction and affordable options for homebuyers.
The Texas housing market is currently undergoing a transformation, featuring a surge in affordable homes due to a homebuilding boom. With a notable increase in housing inventory priced under $350,000, Texas stands out nationally, offering homebuyers more options. The influx of new builders and a significant number of newly issued housing permits are attracting out-of-state residents seeking homeownership in this bustling market. Despite challenges in matching inventory with income distribution, the Texas housing market is set for an exciting yet complex future.
The Texas housing market is buzzing with excitement! As the Lone Star State witnesses a **_surge in affordable inventory_** thanks to an ongoing homebuilding boom, the landscape is changing for current and prospective homebuyers alike. With opportunities opening up and inventory levels on the rise, it’s no wonder so many folks are eyeing Texas as a great place to plant roots.
Last year, a whopping **_47.5% of houses for sale in Texas_** were priced at $350,000 or below. In comparison, only **_40.1% of inventory nationwide_** fell into this price range, showcasing Texas’s commitment to providing affordable housing options. It’s a real breath of fresh air for folks trying to make homeownership a reality, especially when you factor in the increasing number of homes coming onto the market.
This good news doesn’t end there! Realtor.com recently reported that there was a **_notable uptick in homes priced under $350,000_**, with an additional 50,000 homes expected to be available in 2024. With the median home listing price in Texas sitting at **_$360,000_**, that is a **_big win_** for buyers, as it stands **_$40,000 lower than the national median_**.
The buzz in the Texas housing world is also due to the homebuilding boom currently taking place. New companies are making their way into major metropolitan areas, especially in cities like San Antonio, which is capturing the spotlight. In fact, Texas scored the **_highest number of new housing permits in the country in 2024_**, accounting for a staggering **_15% of the national total_**.
Just recently, Drees Homes, the **_41st-largest homebuilder in the U.S._**, decided to expand their reach by acquiring San Antonio-based Monticello Homes. With a rich history since 1994, Monticello has constructed over **_2,000 luxury homes_** in the area. This acquisition puts Drees Homes in the position to operate in **_11 metropolitan areas across the United States_**, which could ultimately bring more diverse housing options to local markets.
Meanwhile, McKinley Homes, hailing from Peachtree Corners, Georgia, has also made a splash in Texas. They expanded their foothold by acquiring Liberty Home Builders Houston, which has established a solid reputation since its founding in 2013 with over **_2,100 homes built_** in Houston and San Antonio.
It’s quite evident that Texas is a hotbed for new residents, with more than **_1 in 4 homebuyers coming from out of state_**, predominantly from California and various foreign countries. The **_affordable housing_, favorable climate, and plentiful job opportunities_** seem to be hard-to-resist draws for many individuals and families looking to relocate.
However, while the availability of lower-priced homes is abundant, Texas is still facing challenges. Unfortunately, the housing options don’t perfectly match the income distribution in the state. With **_51% of Texas residents earning less than $75,000 annually_**, affordability remains a central concern for many prospective buyers, even with the increased inventory.
The housing market in Texas has seen an incredible increase in median sale prices, rising **_38.8% statewide from 2019 to 2023_**. In San Antonio alone, the increase was **_35.3%_**. This climbing trend reflects the urgent need for builders to come up with hundreds of thousands of new homes to keep pace with the incredible population growth and housing demand.
With an estimated shortage of **_306,000 homes_** needed to meet current housing needs, it seems clear there’s plenty of work left to do. Additionally, with the luxury market predicted to grow as well, there’s a 10% anticipated increase in sales of homes priced at **_$1 million or more_** from the previous year.
As interest rates rise and home prices continue their journey upward, Texas appears to be gearing up for a thrilling yet challenging real estate ride in the coming months. So, whether you’re a first-time homebuyer or looking to find a new luxurious haven, Texas might just be the place for you!
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