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.

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.

✨ Newcomers, how are you liking Houston? Did you move mostly for affordability or was it our special Houston charm?

• Shoot us an email.

Texas heat threat

Institutional investors bought 8% of houses sold last year in the Houston metro area, a drop from 2023, per a new ATTOM report.

The big picture: Nationwide, institutional investors — any non-lending group that purchased at least 10 properties in a calendar year — have backed off the last three years as housing affordability has plummeted, the report shows.

Why it matters: Investors bet on growth. They want to see strong population and job growth, solid rental yields, landlord-friendly regulations, affordability, and long-term appreciation potential, ATTOM CEO Rob Barber tells Axios.

• Though investors bought fewer houses last year, they're still drawn to southern states like Texas.

By the numbers: 8.2% of houses sold in Texas last year were bought by institutional investors, down from 9.6% in 2023.

• Houston's share dropped by 0.8 percentage points, falling from 8.8% in 2023.
• That's well above the national average. Investors bought up 6.3% of houses sold nationwide last year.

☪️ HISD's proposed 2025-26 calendar would not give students a day off for Eid al-Fitr, marking the end of Ramadan. If approved, students in the upcoming academic year would continue to get a day off for Good Friday and Yom Kippur. (Houston Chronicle)

🪧 Hundreds protested in front of Houston City Hall on Presidents Day to oppose Trump-era policies. (KPRC)

📝 Gov. Abbott asked the Texas Education Agency to investigate Bellaire High School for allegedly "socially transitioning" a student, after a claim that teachers were calling a student by their chosen name and pronouns. (Houston Public Media)

🤝 Forge friendships and practice speaking other languages with BlaBla at McIntyre's downtown tonight.

• Free, but ordering a drink is required. Mingling starts at 7:30pm.

🎵 Splurge on last-minute tickets to see Mary J. Blige at the Toyota Center tonight.

• Tickets start north of $100. 7pm.

🙀 Neuter your male cat at the Houston Humane Society's Fix Felix event tomorrow.

• Free, but a $10 deposit is required. 7am-5pm.

✨ Learn how to read the night sky at the Houston Museum of Natural Science's Star-Crossed Constellations lecture tomorrow.

• Tickets are $18 for the public and $12 for members. 6:30pm.

🌮 Pig out at Star Sailor's Taco Hell kitchen takeover Thursday.

• Special menu items available 6-9pm.