With 11% of foreign buyers in the US looking towards Texas, it’s becoming clear the state is a favorite among real estate investors. One of the main reasons people are flocking to Texas is the diverse housing markets it offers – from Odessa to San Antonio, there’s something for everyone to love. With job growth up and a healthy pool of renters available, Texas has never looked better to real estate investors. Here’s a look at top five cities for real estate investment in Texas.
Home prices in Odessa are down, nearly 20% at the beginning of this year. Greater housing inventories and low interests rate make this one of the best markets for prospective investors in years – West Texas is looking more and more like a great buying opportunity. With a noticeable price drop in luxury homes, and oil prices playing a large role in the economic strain, savvy investors are keeping one eye on Odessa.
Houston is booming, and as the largest city on this list, there is plenty to choose from. With well over 2 million residents and growing, expansion has taken place at a rapid rate. Last year investors saw their average gross return on housing go up 18.5%. We like those numbers, which is why it’s a great opportunity for real estate investment in Texas.
Austin has quickly become one of the coolest cities in the nation, hosting the annual SXSW Festival and opening its door to music lovers, barbecue enthusiasts and a host of other groups. Property values climbed an average of 9% in 2015, and the city isn’t showing signs of stopping. Year over year job growth is up 3.3%, and the three-year growth rate for the city is 9%. With numbers like this, it’s easy to see why Austin is full of a pool of potential renters, making it a great choice for real estate investment in Texas.
Year-over-year job growth in Dallas is just above Austin at 3.5%, while the city is also growing with a three-year growth rate of 6%. Investors have seen strong growth in rental prices relative to property values over the past year, making the allure to investors strong. What’s most exciting is the three year home price growth projections in Dallas, coming in at 33%. This leads the state, making it one of the best places for real estate investment in Texas.
1. San Antonio
The average home price in San Antonio last year was right around $200,000, with plenty of opportunities for investors to get in at a good price. Annual job growth in the city was 3.7%, higher than both Dallas and Austin. Housing prices shot up 8% last year, and the three year projected price growth is just as exciting at a 26% forecast. From the Riverwalk to the Alamo, San Antonio has plenty to offer residents and investors alike.