Best Locations For Texas Real Estate Investment
In a state as large as Texas, you can expect some variety in the nature of the local markets. That’s why it is a good idea to check out the real estate in a specific city or metro area before making a choice. The great news is that Texas is booming, with significant growth in many of its major cities. The potential increases in property values and rental income are impressive. If you’re thinking about Texas real estate investment, you’d be wise to start by looking at these locations.
Coming in at the top of the list is the Dallas-Fort Worth area, which is positively exploding with growth in every way. The population of the metro area expanded by 1.2 million in the past decade, 120,000 of that in 2020 alone.
With that kind of growth, it’s not surprising that home prices are on the rise. Texas Realtors notes that area values have jumped about 18% in 2021 for a median of more than $350,000. The months of available housing inventory have dropped by nearly one-third, indicating a high demand.
Speaking of demand, rent is exploding as well. Apartment List reported that rent has risen about 15% in the past year, more than $2,300 per month for a two-bedroom. If you’re looking for real estate loans in Texas, Renovo has you covered.
When Texas residents decide that they want to relocate, increasingly they are heading to Houston. Houston offers affordable housing options with a large metro area that has expanded by about 7% in the past five years. Houston is known as more affordable than other metro areas such as Dallas, and its potential is continuing to shine.
Texas Realtors reports that the city saw 15% growth in home values to a median of $305,000, with housing inventory dropping by about a quarter. Apartment List notes that rent is a bit lower than Dallas, about $1,900 per month, but the 10% growth in the past year shows a lot of possibility for investors who get in while prices are lower. Renovo has custom loan programs for different types of property investments, from rehab loans to rental loans.
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With a population of about 2.5 million for the Greater San Antonio area, the city has a lot of room for growth, and it shows. On a list of the best places in Texas to invest in real estate, San Antonio merits a mention because of its general affordability, low tax rate and job opportunities.
The city draws new residents largely from the east and west coast, especially those looking to establish a family. The numbers show it. San Antonio had nearly 16% growth in home values in 2021, according to Texas Realtors, with a median of $295,000. The price makes it easier for first-time buyers to get in, with plenty of room to go up from there. Rent for a two-bedroom is a modest $1,500 per month, reports Apartment List, but that reflects a growth of 15%.
Investors looking for an unexpected win might try looking in Austin. The city’s seen huge population growth in the past few years, making it the fastest-growing metro area in the country as of 2020.
Austin seems primed for an explosion, and the home values reflect that. Texas Realtors reported that Austin home values boomed by nearly a third in 2021, to a median price of $465,000. Despite the higher costs, housing availability is lower here than it is elsewhere. Although rent prices dipped about 5% in 2020, demand is pushing a rise faster than the rest of the state. It’s about $1,800 per month for a two-bedroom and growing quickly.
Looking for Great Places to Invest in Texas?
Although a list of the best cities in Texas to invest in real estate can’t include every great location, here are some honorable mentions:
- Brownsville: 29% growth
- Killeen: 20% growth
- Longview: 20% growth
- Sherman: 20% growth
- Waco: 18% growth
Texas is a great place to invest, and nowhere more so than these well-known, popular cities. With affordable prices and dramatic population growth, investors have a lot of opportunities to succeed. Contact us for more information about Texas investment and real estate.
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