Why out-of-state residents buy Texas houses
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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 Greater Houston.
- 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 the Lone Star State.
- 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.
Betweeen the lines: 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.
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 Houston, 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, Houston and Dallas-Fort Worth 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 the Houston area, 35.1% of home sale listings are new construction, compared with 29.4% statewide.
Yes, but: While more than half of Texans make less than $75,000 annually, only 17% of houses for sale are affordable at that income.
- Even those making up to $150,000 can afford only 66% of the houses on the market.
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 Houston, 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.