Texas housing market: Everything you need to know

Source: Bankrate — 

Texas, the country’s second-most populous state, is a top relocation destination for people seeking an affordable cost of living and below-average housing prices. In fact, Texas had the largest population growth of any U.S. state in 2021, according to Census data.

Living in the Lone Star State certainly has its perks. Not only are the winters milder than in much of the country, but life’s everyday expenses are cheaper as well. Plus, the state doesn’t charge its residents any income tax. Even better? Two Texas cities, Austin and San Antonio, made Bankrate’s most recent list of best places to live in the U.S.

However, rising mortgage rates and slowing home sales are affecting home sellers and buyers all across the country, including Texas. Let’s dive into the Lone Star State’s housing market for 2023.

Texas housing market overview

Because Texas is such a big state, housing trends and prices vary quite a bit depending on the city and region. For example, according to Redfin data, the median home price in Austin — where the tech industry has been expanding rapidly — is $540,000. That’s more than double the median price in a less buzzy town like Amarillo, where the median is just $207,500. Use Bankrate’s new-house calculator to see how much house you can afford.

Texas housing market trends and stats

• If you’re looking to buy a house in Texas, you may get a better deal than you would in other states. According to the most recent data from Texas Realtors, the median home sale price across the state was $345,000 in Q3 2022. That number is up 11.3 percent from the same time the previous year, but still more than $25,000 cheaper than the current national median sale price of $370,700.