Thinking of moving to Texas? The Texas real estate market is booming, attracting those escaping high-cost areas. While Texas offers lower taxes and more space, increased demand has driven up prices, particularly in cities like Austin and Dallas. Consider less expensive options like San Antonio, and factor in high property taxes when budgeting. Working with a local real estate agent is key to navigating this competitive market.
Why Everyone’s Talking About Texas Right Now
Texas is growing like crazy. Companies are relocating there. People are leaving high-cost cities like LA and NYC and betting everything on Texas. The draw? Low taxes, affordable homes (well, more affordable than California), and plenty of space. Sounds great, right?
But here’s the kicker: the demand is TOUGH. Prices are rising. Competition is brutal in places like Austin, and inventory isn’t keeping up. You don’t want to show up blind.
Don’t Freak Out About the Rising Prices
I know what you’re thinking: “Did I just miss the affordable Texas everyone talks about?” Not entirely, but things are shifting quickly. Over the past couple of years, home prices in hotspots like Dallas, Austin, and Houston have been climbing fast.
- In Austin, the median home price is pushing $500,000. That’s no small chunk of change.
- Dallas and Fort Worth? You’re looking at an average of around $350,000–$400,000 right now.
- Smaller cities like San Antonio still sit in the $300,000 range, making them a tad more budget-friendly.
So here’s how to look at it: Texas isn’t a bargain-bin state anymore. It’s a hot commodity. If you’re banking on cheap houses everywhere, you might need to rethink your expectations. But there’s still good value here compared to places like California, New York, or Washington.
Where You Should Start Looking
Not every city in Texas is cut from the same cloth. Some are all about the tech scene, hustle, and bustle. Others feel like a small-town hug when you walk down the main street.
Austin: The Silicon Valley of Texas
This city is tech central, and it’s no secret why. Big companies like Tesla and Google are putting down roots here. People love the vibe—live music, outdoor activities, and great food.
it’s getting pricey. If you’re looking for the next Austin, you might want to peek at Georgetown or Kyle, which are close by but less intense on your wallet.
Dallas-Fort Worth: A Little Bit of Everything
DFW has been blowing up for years. It’s a blend of job opportunities, good schools, and more affordable suburbs. Plano and Frisco are popular for growing families, but that demand means home prices are competing with Austin’s in spots.
Houston: More Affordable, Still Lots to Do
If you want city life without the crazy home prices, Houston fits. You still get access to big industries like energy and healthcare, but with lower costs compared to Austin and Dallas. Keep in mind—if humidity isn’t your thing, this might not be your dream spot.
San Antonio: The Underrated Gem
San Antonio’s been flying under the radar, but buyers are starting to catch onto its affordability and charm. You’ve got history, culture, and home prices that aren’t trying to bankrupt you. If Austin’s chaos isn’t your style, San Antonio could be a win.
Ready to Buy? Here’s What You Need to Do FIRST
Don’t just roll up to Texas and start throwing money at homes. Take a step back and get tactical about this.
- Run the Numbers: Figure out your budget. Talk to a mortgage lender to see what you can really afford. Don’t guess here—it’s too important.
- Pick Your Priorities: Are schools a must? Are you dead set on a short commute? Texas is HUGE, so knowing what matters to you will save time.
- Spend Time There: If you’ve never been to the city you’re eyeing, spend a weekend checking it out. Online listings only tell part of the story.
- Work with a Local Agent: Texas real estate is competitive, and a local pro will keep you from getting steamrolled by locals who already know the lay of the land.
Pro tip: Texas property taxes are some of the highest in the nation. Yes, there’s no income tax, but that monthly payment might surprise you. Don’t ignore this when running your numbers.
FAQs
1. Is Texas still affordable compared to other states?
Yes and no. Compared to high-cost states like California or New York, Texas is still relatively affordable. But within Texas, hot cities like Austin and Dallas are becoming pricey. If affordability is your goal, check out cities like San Antonio or less popular suburbs.
2. What’s the best time to buy a home in Texas?
Spring and summer are packed with buyers, so the competition is intense—great for sellers but hard on buyers. If you can swing it, fall and winter tend to have fewer buyers, which gives you a bit more negotiating power.
3. Are property taxes really that high?
Yes. While Texas doesn’t have a state income tax, property taxes can feel like a gut punch. Rates typically range from 1.6% to 2.3%, depending on your county. Make sure to factor this into your budget before making any big moves.
4. How competitive is the Texas housing market?
It depends on the city. Austin and Dallas are fast-paced markets with bidding wars becoming common. Houston and San Antonio are a bit more relaxed, but if you’re going after a desirable neighborhood, expect some competition.
5. Should I buy or rent first?
If you’re new to Texas, renting for a short period can be smart. It lets you get a feel for the area without rushing into a commitment. You don’t want to buy a house and then find out the commute or vibe isn’t for you.
Closing Thoughts
Texas attracts newcomers with lower taxes, but rising demand has made its real estate market competitive, especially in Austin and Dallas. Consider San Antonio for affordability, but factor in high property taxes. Careful planning and a local agent are key to navigating this market.
