Mausam Bhatt Chief Product and Technology Officer | realtors.com
Texas is experiencing a rapid population growth, leading to increased demand for housing. As the fastest-growing state in the U.S., Texas accounted for 15% of the national total of permitted housing units last year, surpassing its 9% share of the U.S. population. New homes in Texas are becoming smaller and more affordable, with a notable decrease in median square footage by 5.3% since 2020.
Realtor.com recently released a report highlighting these trends while announcing its headquarters relocation from California to Austin, TX. This move reflects a broader migration trend from California to Texas, driven by more affordable housing, job opportunities, and escape from frequent wildfires.
"The state has grown rapidly in the last several years as people from across the country and across the world have seen what Texas has to offer," said Danielle Hale, Chief Economist at Realtor.com. She noted that increased homebuilding activity has helped stabilize the market and increase housing inventory.
Texas' population has grown by nearly 4 million residents over the past decade, with projections suggesting it could become the most populous state by 2045. The influx includes both international migrants and domestic relocations primarily from California.
Despite challenges during the pandemic, Texas' median home prices have remained below national levels. As of December 2024, the median list price was $360,000—approximately $40,000 less than the national median. On a price-per-square-foot basis, Texas homes are increasingly affordable compared to national figures.
However, there remains a disparity between available housing prices and income levels within Texas. Only a small percentage of homes are affordable for lower-income earners despite significant construction efforts. Realtor.com's economists emphasize that Texas must continue building resilient homes capable of withstanding environmental risks such as floods and heat.
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