The Texas real estate market, after reaching record highs in 2022, is now experiencing a slight cooling off. Although home prices remain higher than pre-pandemic levels, their growth has slowed down, allowing buyers to potentially purchase homes without paying above the asking price as they had been doing in recent years. While it is still a seller's market, buyers now have a greater selection of homes to choose from, with the number of homes for sale at its highest since the fall of 2020.
One significant factor influencing the current state of the Texas market is the substantial increase in housing prices over the past few years. A typical mid-priced property has seen a growth of almost 64% over the past five years and nearly 16% over the past year. However, rising interest rates have put a strain on buyers' affordability compared to a year ago.
Despite the cooling market, Texas continues to experience rapid growth. The state's population grows by 3,800 people every week, and it remains among the top five states attracting businesses. Companies such as Oracle, Hewlett Packard, Charles Schwab, Toyota, Samsung, Kubota, Amazon, Google, and Tesla have either relocated their headquarters or expanded their operations in Texas.
While growth is observed in all Texas metro areas, cities like Austin and Dallas consistently rank among the top five fastest-growing cities in the United States. In fact, Dallas-Fort Worth was recently rated as the second-best city for real estate investors in a survey of 2,000 real estate agents. Additionally, Californians continue to migrate to Texas, enticed by the prospect of larger homes at lower prices.
The combination of these unique factors distinguishes Texas as a real estate market that may deviate from national trends.
Here’s a little information on the four cities in North Texas that are in the top eight.
Fort Worth came in at #3 nationally, adding nearly 13,000 new residents. The fifth largest city in Texas and the 13th largest city in the country, Fort Worth is a modern city that still pays homage to its roots as the center of the Texas Longhorn cattle trade. It boasts a robust arts community, including multiple museums and the Van Cliburn International Piano competition. Fort Worth is home to Texas Christian University, Texas A&M Law School, and Texas Wesleyan.
Frisco city added nearly 8,000 new residents, coming in at #8 nationally for the largest population increase, and now claiming a population of more than 200,000. Part of the DFW metroplex, it houses a large number of commuters working in Dallas and Fort Worth. Frisco was designated as Tree City USA by the National Arbor Day Foundation and serves as the HQ and training facility for the NFL’s Dallas Cowboys, the NHL’s Dallas Stars, and FC Dallas in Major League Soccer.
Denton added another 5,800 residents to its population, which now exceeds 148,000, and ranks #14 on the list nationally for growth. Also in the DFW metro, Denton is known as “Little Austin” due to its music festivals, including performances at the North Texas State Fair, Arts and Jazz Festival, and the Thin Line Fest, which attracts more than 300,000 visitors annually. It’s also home to the University of North Texas and Texas Woman’s University.
McKinney Rounding the top 15 nationally, McKinney grew by more than 5,500 and has not topped 202,000 residents. Consistently ranked as one of the most livable places in the country, McKinney retains its small-town feel with a historic downtown lined with trees while being just 30 minutes from Dallas. The area also supports a large number of vineyards.
