Texas is a hotbed for real estate, with people moving to the state every day. As the economy improves and more jobs become available, people flock to Texas in droves. The population of Texas is expected to double by 2050, and it’s not just because of immigration – Texans are starting families at an increasing rate. In fact, over half of all US births in 2014 were born in Texas.
The real estate market is booming as a result of this population growth. If you’re thinking of buying a home in Texas or selling your current home, it’s important to be aware of the following trends shaping the market.
The rise of the suburbs
As urban areas become more congested and expensive, many people are moving to the suburbs, searching for more space and a better quality of life. Suburban areas are becoming more popular, but they’re also becoming more affordable. The Houston suburb of Katy, for example, was recently ranked as one of the best places to live in Texas.
The growth of second-tier cities
As the major metropolitan areas become more crowded and expensive, many people are moving to second-tier cities in Texas. These cities, such as Austin, San Antonio, and Dallas, offer a more affordable cost of living and a lower crime rate than the larger metros.
An increase in new construction
With the population of Texas expected to double by 2050, there is a need for more housing. This demand is causing an increase in new construction, especially in the suburban and second-tier city markets. Developers are responding to this demand by building more homes, apartments, and condos.
A decrease in foreclosures
As the economy has improved, the number of foreclosures has decreased. This is good news for the housing market as it indicates that more people can keep up with their mortgage payments. The decrease in foreclosures is good news for the housing market. When homeowners are faced with foreclosure, it can have a domino effect on the entire community. Foreclosures can cause a decrease in property values and increase crime rates. They also have a negative impact on the local economy. If you’re thinking of buying a home in Texas, it’s essential to be aware that prices are rising. The average price of a home in Texas is now over $200,000, and prices are expected to continue to increase in the coming years. As demand for housing increases, so do home prices.
A decrease in inventory
The combination of increasing home prices and decreasing foreclosures has led to a decrease in inventory. A decrease in inventory can make it difficult for buyers to find their perfect home. This is because when there are fewer homes on the market, competition for them increases. As a result, buyers may have to compromise on their ideal home or pay more than they expected.
An increase in renters
With the decrease in inventory, many people opt to rent rather than buy. This is causing an increase in the demand for rentals, driving up prices. As the number of foreclosures decreases and the economy continues to improve, more people are choosing to rent rather than buy. This is causing an increase in the demand for rentals, which is driving up prices. Renting has become increasingly popular in Texas, especially in the larger metropolitan areas. In Houston, for example, over 40% of residents are renters.
A decrease in affordability
As the cost of living continues to rise in Texas, many people find it difficult to afford a home. The combination of increasing home prices and decreasing inventory has led to a decrease in affordability. This means that, even though the demand for housing is high, people struggle to find a home that they can afford. If you’re thinking of buying a home or renting an apartment in Texas, be prepared to budget for the increased costs.
The rise of the sharing economy
The sharing economy, such as Airbnb, has a significant impact on the real estate market. More and more people are opting to rent out their homes or rooms in their homes to travelers, which can make it difficult for those looking for a traditional rental. This trend is likely to continue as the sharing economy grows in popularity.
Summary
If you’re thinking of buying a home in Texas, it’s important to be aware of the trends shaping the market. Many people choose to rent rather than buy, as it becomes increasingly difficult to find a suitable home. The rise of the sharing economy is also having an impact on the real estate market. Be prepared for increased costs and decreased affordability as you search for your perfect home in Texas. Keep these trends in mind as you search for your ideal home in Texas!
