Texas continues to be one of the fastest-growing states in the U.S., driven by migration, economic growth, and a vibrant housing market. Realtor.com’s new report displays why people and businesses are moving to Texas.
Over one in four home shoppers in Texas are from out of state, with the largest groups coming in from California and international sources. The state’s economic expansion, specifically in technology, manufacturing, and construction, has created a strong job market that attracts newcomers seeking employment and lower living costs.
“In the years since the COVID-19 pandemic, the Texas economy has boomed, especially in high-demand industries like technology, education, manufacturing, and construction,” said Danielle Hale, chief economist at Realtor.com
Texas has also become a leader in new home construction, accounting for 15% of the nation’s new housing permits in 2024. The state has focused on building smaller, more affordable homes, helping ease the housing shortage. While new homes in Texas are slightly smaller than a few years ago, the share of homes priced below $350,000 has risen, making homeownership more attainable.
Despite rising prices, Texas remains more affordable than the national average. As of December 2024, the median listing price in Texas was $360,000 – about $40,000 lower than the national median. Nearly half of homes for sale in Texas were priced at $350,000 or less, compared to 40.1% nationwide. However, there is still a gap in affordability for lower-income households, with only 17% of homes affordable to those earning less than $75,000 annually.
Texas also stands out for its affordable rental market. In 2024, Austin and San Antonio ranked among the top 10 rental markets, with Austin becoming a hotspot for recent college graduates due to its combination of affordable rents and job opportunities.
“By showcasing solutions from states like Texas and calling attention to those that are falling behind, we can drive a national conversation that leads to real, meaningful change,” said Damian Eales, CEO at Realtor.com
While San Antonio has the highest share of homes priced under $350,000, Austin remains the least affordable major metro. Despite challenges, Texas offers a more affordable housing market than many other regions.
The report highlights Texas’ ongoing growth and its challenges in balancing demand with affordability. As migration to the state continues, the housing market will likely evolve in response to these dynamics.
