The great Texas State is perhaps the fastest-growing state in the current US history. The state has been undergoing incredibly increased population expansion. Texas amassed over 7.4 million people within the space of eighteen years, that is, from 2000 to 2018. The population growth and migration of new residents to the cities of Texas state is primarily due to the economic development and high job opportunity. Although the incidents of the Covid 19 pandemic has hampered the migration rate a bit, its consequences on normal population expansion are unknown.
The Texas Housing Market Selling Points
Housing Affordability: Texas Housing Market is distinct as an affordable location to reside. The affordability is primarily because the housing cost is considerably cheaper on the coasts. However, the obvious is that Texas housing is slowly becoming less affordable, particularly in the vast municipal regions where practically all of the economic and population expansion is taking place. And that movement could prove to be a brake on Texas’ economic and population development down the road.
Oil and Tech Boom: Another selling point of the Texas Housing Market is the massive establishment of Oil and tech industries. The Oil and Tech industries fuel Texas’ economy, making the state leading in economic achievement in 2020. Unfortunately, due to the recent decline in international oil prices, this explosion in economic advancement has begun to dwindle. But, Texas is nonetheless witnessing reasonable expansion at what is plausible a sustainable velocity.
High Employment Rate: Texas State indexed number 7 for states with the fastest job employment rates in 2020. The state has an employment growth rate of 1.6% in 2020, correlated with 2019, which had an employment growth rate of 2.3%. Although, the aftermath of the pandemic hampered the employment growth rate as would be anticipated. However, it has not come to a complete pause, and expected that the economy would continue to thrive nicely in 2021.
The Future of Texas Housing Market in 2021
Likely Rise in Texas Property Values: Approximately 84,464 homes were traded in the first quarter of this year in Texas, exceeding 10.1% correlated to the first quarter of 2020. One-third of the one-quarter of the households sold were in the spectrum of $200,000-$299,000 price, the most significant proportion of any price spectrum.
The corona pandemic hasn’t hampered the rise in Texas property values greatly. In the research of Zillow, he found out that values have appreciated by 4.1% in the last year. However, this is smaller than the US median of 5.8%, and property values are nonetheless rising in the cities of Texas, which is an optimistic sign. And properties in the Texas housing market in 2021 are predicted to see a real estate appreciation of 6.5%.
Likely Rise in Texas Rental Values: From the information at Mashvisor, the price to rent ratio in Texas is 19, demonstrating that more people tend to rent in the aspect of housing affordability than buy. Presently, Texas household prices are negligibly over average, with the average listing price at $359,739, as contradicted to the US average of $345,500. However, the discrepancy in costs is not enormous, and it could be sufficient to deter tenants from giving rise to homeownership. Furthermore, the real estate prices will rise next year; the Texas housing market should increase the tenant population. Across the board, this is a piece of favorable evidence for investors, who should see increased residence rates for rental units.