Why Californians buy Texas houses
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Maura Losch/Axios
More than 1 in 4 Texas home shoppers are from out of state, per a new report from Realtor.com.
Why it matters: Texas continues to lead the U.S. in population growth, but the surge in new residents has contributed to a tight housing market in the state's four largest metropolitan areas, including Dallas-Fort Worth.
- As a result, homeownership is out of reach for lower-income families.
The big picture: Though housing prices are still too high for many Texas residents, the state is more affordable than California and Florida, the states with the highest number of residents who flock to Texas.
- Californians are 56% more likely to say they moved to Texas for cheaper housing than new Texas residents from other states, per the Realtor.com report.
Context: Like many other companies, Realtor.com is moving its headquarters from California to Austin. Its report examines why so many people and businesses are moving to the state.
- For example, Texas added 2.5 million workers to its payrolls from 2013 to 2023 — more than any other state — while unemployment has hovered below 4%, per the report.
Reality check: Though the Realtor.com report presents a sunny view of the state's housing market, it does recognize that Texans are likely to face added housing costs due to extreme heat and hurricane risks in the state.
- In D-FW, nearly every home faces a severe or extreme risk of added costs due to hot weather. That includes increased cooling costs, HVAC replacement and added maintenance needs for roofs and exterior walls.
Zoom in: Texas saw a massive population influx during the pandemic, threatening housing inventory and driving up prices.
- Though the Texas housing market has cooled statewide, Dallas-Fort Worth and Houston continue to see a faster market pace than the national average, meaning houses still aren't staying on the market long.
By the numbers: An increase in new home construction has helped meet the housing demand. In D-FW, 31.9% of home sale listings are new construction, compared with 29.4% statewide.
- But, new houses in D-FW are the most expensive in the state. Newly built homes are 13.8% more expensive than the price of existing D-FW homes.
- Austin, meanwhile, offers new builds for 4.7% less than the median price of existing homes listed.
Yes, but: More than half of Texans make less than $75,000 annually, but only 17% of houses for sale are affordable at that income.
- Even higher income earners making up to $150,000 can afford only 66% of the houses on the market.