Need That Money

Exploring Texas’ Rising Home Values and the Driving Factors

Best Housing Markets for Growth and

Stability in Texas

As a state with a rapidly growing population, Texas has become a hot spot for investors in the housing market. For those looking to explore housing options in Texas, a recent study by SmartAsset ranked the state’s best housing markets for growth and stability.

SmartAsset utilized several factors to rank housing markets, including overall home price growth, stability, and benchmarks. According to the study, these factors helped identify the cities with the best potential for investors in the housing market.

Rankings of Best Housing Markets

Topping the list of the best housing markets in Texas was the Austin-Round Rock metropolitan area. Coming in second was the Dallas-Fort Worth-Arlington metropolitan area, followed by Houston-The Woodlands-Sugar Land, and finally, San Antonio-New Braunfels.

Factors Used to Rank Markets

Overall Home Price Growth

The study analyzed the overall home price growth in each market and found that Austin experienced the highest growth at 7.5% in the past year. Houston followed closely behind with 7.2%, while Dallas and San Antonio experienced 6.9% and 6.6% growth, respectively.


Stability is an essential factor for investors in the housing market. Factors such as the number of mortgage loans in delinquency, unemployment rate, and housing market vacancy rates were used to determine the stability of each housing market.

The study found that the Dallas-Fort Worth-Arlington metropolitan area was the most stable option for investors. The area had the lowest unemployment rate at 6.2%, while Houston had the highest rate at 8.0%.


SmartAsset also looked at various benchmarks, such as average days on the market, monthly housing costs, and building permits per 1,000 homes. Dallas ranked highest in building permit issuance, while Austin ranked highest in average days on the market.

Success of Austin’s Housing Market

With its rapidly growing population and booming economy, the Austin-Round Rock metropolitan area has become a hub for the housing market in Texas. The area is home to several high-tech companies and is continuously attracting new businesses, resulting in a growing job market.

Growing Population

According to the US Census Bureau, the population in the Austin metro area grew by 20.3% from 2010 to 2020, making it the fastest-growing metropolitan area in the country. The influx of people has resulted in an ever-increasing demand for housing.

High-Tech Companies

The presence of high-tech companies such as Dell, IBM, and Samsung has also contributed to the success of Austin’s housing market. These companies have provided high-paying jobs, leading to a steady increase in the demand for housing, particularly in the downtown area.

Home Value Increase

The demand for housing in Austin has resulted in an increase in home values. According to the Austin Board of Realtors, the median home price in the Austin-Round Rock metro area has gone up by 48.4% since 2015.

Comparison to other cities in Texas

When compared to other cities in Texas, Austin’s housing market has consistently outperformed the rest. In addition to experiencing the highest home price growth in the past year, Austin’s overall stability and benchmarks are also higher than those in Houston, Dallas, and San Antonio.

The Bottom Line

Texas is home to some of the most promising housing markets in the country, especially in cities such as Austin, Dallas, Houston, and San Antonio. These markets offer great opportunities for investors, as well as those looking for a place to call home.

To make an informed decision about investing in real estate, it’s essential to take a comprehensive look at the housing market in each city. SmartAsset’s study provides a great starting point for anyone looking to invest in Texas’ housing market by identifying the best markets based on critical factors such as growth, stability, and benchmarks.

3) Home Prices and Inflation Rates

Inflation rates have been on the rise globally, leading to several negative impacts, one of which is the housing market. Record-high inflation rates have made purchasing a home even more unattainable for many potential buyers, leading to a disinterest in homebuying.

Negative impact of record-high inflation rates

Record-high inflation rates have caused a financial burden for many households, resulting in less money available for saving and investing. This financial strain has contributed to a decline in the number of people purchasing homes in recent years.

Disinterest in purchasing homes due to high prices

The high price of homes in the current housing market has made it increasingly difficult for first-time buyers to enter the market. As a result, many potential buyers have been forced to either indefinitely postpone homeownership or find alternative options.

Connection between Federal Reserve interest rate hikes and home prices

There is a direct link between the Federal Reserve’s interest rate hikes and home prices. When interest rates are lower, buyers can afford to borrow more money, making it easier for them to purchase homes.

However, when interest rates rise, the cost of borrowing increases, making homeownership less affordable for many buyers.

4) Best Housing Markets Overall

If you’re looking to purchase a home, certain housing markets have been labeled as some of the best options for potential buyers. Ranking the top 15 housing markets in the country is a study that helps identify the markets that offer the best investment potential.

Rankings of top 15 housing markets

According to a recent study from WalletHub, the top three housing markets in the country are Seattle, Denver, and Austin. Several other cities listed in the top 15 are not located in Texas, including Overland Park, KS, Scottsdale, AZ, and Raleigh, NC.

Cities outside of Texas that made the list

Seattle, WA, ranking first in the top 15 housing markets, has consistently proved to be an attractive location for investors and homebuyers due to its strong economy and growing job market. Similarly, Denver, CO, and Austin, TX, rank second and third, respectively, due to their thriving job markets and growing populations.

Criteria for ranking housing markets

To rank the top housing markets, WalletHub examined factors such as overall home price growth, economic growth, job opportunities, affordability, and quality of life. The study aimed to provide an insight into the markets that provide the most promising investment potential and future returns.

The Bottom Line

While high home prices are still a significant cause of concern for potential investors and buyers, many emerging housing markets offer the potential for strong returns and a desirable quality of life. By looking at the overall growth potential, stability, and other criteria for housing markets, you can gain a better understanding of which markets may prove to be the most promising for your investment.

5) Home Prices in Texas

The real estate market in Texas has been experiencing a significant rise in home prices. The favorable economic conditions, job growth, and urbanization are some of the reasons for this growth.

In this article, we will examine Texas’ housing market and factors that contribute to the increase in home prices.

Home prices in Texas in February

According to a report by the Texas A&M University Real Estate Center, the median home price in the state of Texas increased by 18.4% in February 2021 compared to the previous year. Additionally, in the Austin-Round Rock metro area, the median home price increased by 23.5% during this period.

Factors for increased home value

Proximity to oil and gas reserves

While the oil and gas industry has experienced several challenges in recent years, Texas remains the leading producer of oil and gas in the country. The state’s proximity to these reserves is a significant factor contributing to the increase in home value.

Cities located near the oil and gas reserves, such as Odessa and Midland, have benefited significantly from the energy industry’s growth. The favorable economic conditions created by the industry have led to increased demand for housing, eventually contributing to the surge in home prices.

Business and tourism opportunities

Texas is home to several large corporations, including Dell, ExxonMobil, and AT&T, creating a diverse range of job opportunities across different industries. The state’s thriving economy, paired with a growing urban population, has contributed to an increase in the number of business opportunities, ultimately driving up home prices.

Similarly, Texas is a popular tourist destination, with vibrant cities like Austin and Houston, renowned for their rich culture and cuisine. The state’s tourism sector has steadily grown over the years, creating a demand for hotels, vacation rentals, and other visitor accommodations, leading to an increase in the value of real estate in these cities.


Texas’ housing market continues to grow, with home values increasing at a steady rate. While this may be great news for homeowners and investors, it can be intimidating for potential homebuyers.

However, the growth in the oil and gas, business, and tourism industries make Texas a desirable place to live and invest in. It is important to keep in mind the factors contributing to the rise in home prices when considering purchasing property in Texas.

A good understanding of the market’s trends and conditions can be helpful in making informed decisions and maximising investment potentials. In conclusion, the real estate market in Texas is experiencing a significant rise in home prices due to several factors, including proximity to oil and gas reserves, business and tourism opportunities, and favorable economic conditions.

These factors contribute to increased demand for housing and impact home values. Prospective homebuyers and investors should consider these factors to make informed decisions that maximize investment potential.

While the rise in home prices may be a challenge for some, Texas remains a desirable place to live and invest in.

Popular Posts