Why out-of-state buyers are flocking to Texas
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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 San Antonio.
- As a result, homeownership is out of reach for low 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.
- Bexar County has a "relatively high" risk index — which FEMA uses to measure a county's risk of natural disasters, scoring it based on exposure, vulnerability and ability to recover.
By the numbers: San Antonio stands out as an especially attractive market for new-home buyers, with 39.8% of listings being new builds — the highest share among major Texas metros.
- New homes in San Antonio are priced just 4.8% higher than existing homes, making them relatively affordable compared to other Texas cities.
- Bexar County's median average home price is $281,995, below the state median of $330,000 in January, according to the San Antonio Board of Realtors.
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 high-income earners making up to $150,000 can afford only 66% of the houses on the market.