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Real Estate Investments Are Picking Up In Texas: Here Are 9 Things You Should Know

Posted On Thursday, 01 September 2022 20:14
Real Estate Investments Are Picking Up In Texas: Here Are 9 Things You Should Know

With a population of 30 million and nearly 270,000 square miles, Texas is one of the biggest states in the United States. When they say everything is bigger in Texas, they weren’t joking. The state and two others contribute to nearly 50% of America’s total population. While the Lone Star state has traditionally been associated with oil and cowboys, it has slowly started to change its image in line with modernity and the advent of technology. 

One of the most striking facts that have emerged about Texas in the last decade has been the boon in the real estate sector. Cities like Austin, Houston, Dallas, and Fort Worth are edging out more famous cities and centers like Boston and San Francisco when it comes to migration. More and more people, families, and investors are moving to Texas than they are to any other state or city in the United States. 

There are multiple reasons why investors have fallen in love with the Texas real estate scene- 

  1. i. Affordable housing
  2. ii. Population growth
  3. iii. Reasonable land prices
  4. iv. Growing economy
  5. v. No income tax

 

In this article, we are going to look at nine things you need to know about investing in the Texas real estate market. Please read this article till the very end if you are a professional, family, or investor that is looking to invest in property, but a house, or go for rental income. 

9 Things You Should Know About the Texas Real Estate Market

  1. 1. Dallas and Houston are the top real estate cities in the United States- 

Reports published by StorageCafe show that in 2021 and 2022, Dallas and Houston topped the list of American cities as far as real estate growth and demand were concerned. It also led among metro cities in terms of new constructions in 2021. If you are wondering how well Austin fared, well, the city was not too far behind at the 11th spot. In terms of commercial real estate, Texas topped other states with 228 million square feet delivered in the last decade. 

  1. 2. Texas is a large state in terms of population, GDP, and transportation systems- 

Forbes reports that, on average, nearly 1000 people move to Texas every single day. In terms of the population, it is one of the largest states in the American federation. It is also huge in terms of GDP, which comes in at around $1.7 Trillion. Additionally, Texas has the largest public transportation system in the country. This means that in terms of growth and amenities, the state outshines its competitors as far as drawing growth and investments are concerned. 

  1. 3. Employment is at an all-time high, and Unemployment is at record lows- 

The booming Texas economy means that both from a service as well as a business point of view, employment is very high. The number of professionals migrating to Texas has seen a rapid increase over the years. The Federal Reserve Bank of Dallas states that unemployment figures have hit new record lows. This means that people have money and are aggressively changing real estate not only live but also for investment purposes. 

  1. 4. The Movement of Big Tech to Texas from Silicon Valley- 

When it comes to large tech organizations, there are a handful of names that come to mind. Google, Apple, Amazon, Meta, Oracle, Tesla, Dell, HP, etc., what if I told you that all of them have shifted part of their operations and opened new offices in Texas? Low taxes coupled with easy regulations have forced big tech to move from Silicon Valley to Texas. This has in turn, necessitated the demand for better housing from tech professionals that work here. 

  1. 5. The abundance of Land in the Lone Star State-

It is true that Texas sees record demands as far as housing is concerned. However, the state is so big that there is an abundance of land on offer if you are willing to pay the right price. This is still affordable when you compare it with other states in the United States. Land For Sale in Texas - Buy Property Acreage, Ranches & Farms by clicking on the link. By working with a top agent, you will be able to get your hands on a fine piece of land in Texas. 

  1. 6. Landlord-Friendly Rental Laws for Investors in Texas- 

A lot of investors that want to buy and run rental properties are often worried about rental laws. If there are problems with the tenant, cases can drag on for months. Not in the state of Texas. Here, the laws are structured in such a way that it favors landlords. This means that if there are violations of the lease agreement, then the landlord can carry out an eviction immediately. This is great for investors that are looking to invest in rental properties. 

  1. 7. No State Income Tax in Texas means you can save thousands every month- 

Let us start this point with a disclaimer. While there is no personal income tax in Texas, you do have to pay Federal Income Tax. However, when you don’t have to pay state income taxes, you end up saving thousands of dollars every month. Remember how we said big tech wants to move to Texas because of tax breaks? They want their employees to live well, enjoy a great standard of living, and spend the money they earn when they don’t have to pay taxes. 

  1. 8. Texas cities are prospering from a population and economic standpoint- 

While Austin, Dallas, and Houston are considered the traditional major cities in Texas, there are different up-and-coming locations that are attracting a fair share of interest from investors. Notable among them are Lubbock, Fort Worth, Corpus Christi, San Antonio, Waco, Garland, and Brownsville. All these cities have witnessed a spurt in population figures. If you are looking at rental properties, be sure to cough up a lot of rent, given the high demand. 

  1. 9. Demand for Texas Real Estate is expected to Grow in 2023- 

If experts are to be believed, this is just the start of the housing market boom in Texas. They anticipate that the average price of homes is set to rise even further. Builders and construction companies delivered the highest number of homes in 2021 in Texas. With average prices growing 25% on a year-on-year basis, Texas is showing no signs of slowing down. Even after the pandemic, the demand for real estate in Texas does not show any signs of slowing down. 

The Final Takeaway

If you are looking to buy land in Texas, now is probably the best time to take this up seriously. If you have been sitting on the fence for a very long time, you need to make up your mind and make a decision. This is because the demand for real estate is only going to pick up in the coming months and years. 

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