Texas housing market

Texas Housing Market Forecast For 2023 Through 2024

Gustan Cho Associates are mortgage brokers licensed in 48 states

This guide will cover the Texas housing market forecast for 2023 going into 2024. The Texas housing market is booming despite mortgage rates surging past 7% in a volatile economy. If you’re considering moving to Texas, you’re not alone.

The Lone Star State is one of the fastest-growing states in the country, and its cities are some of the most sought-after and hottest places to buy a home right now. Many homebuyers are close to being priced out of the Texas housing market due to skyrocketing home prices, says John Strange of Gustan Cho Associates:

Due to rising home prices throughout Texas and nationwide, both HUD and FHFA have increased both FHA and Conforming Loan Limits for seven years in a row. With the highest mortgage rates in ten years, the demand for housing in all counties of Texas has not slowed. There are more buyers than the inventory of homes in Texas.

Homes in Houston and its surrounding areas were initially affordable, allowing middle-income families to purchase newly constructed homes comfortably within their budget. However, the Texas housing market scenario has shifted significantly in Houston due to an influx of families relocating from the west and east coasts, drawn by Texas’s welcoming environment.

Consequently, home prices are rapidly appreciating. This surge has made it exceedingly challenging for first-time home buyers in the middle-income bracket to afford high-quality, newly-built homes. Over time, the housing inventory is expected to dwindle further. The upcoming paragraphs will delve into the thriving Texas housing market in 2023 and 2024, highlighting the five Texan cities witnessing the most active real estate markets.

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Cash Home Buyers And Texas Housing Market

Cash buyers from the East and West Coasts frequently sell their homes and relocate to Texas, armed with substantial cash reserves to purchase our mansions. The same houses here would have been priced three times higher if they were located up north or in California. However, these buyers pay in cash, consistently reducing the availability of homes in the Texas housing market and making it challenging for median-income first-time home buyers to find suitable options.

Investors And The Texas Housing Market

Investors find immense joy in homes priced from 100,000 to 200,000 dollars. Houston, a paradise for investors in the Texas housing market, witnesses an unrelenting competition to secure these properties. The reason behind this fervor is the robust rental market, ensuring substantial returns on these investments. August witnessed a 4.5% surge in leases for single-family homes and a notable 10% rise in condominium leases, reflecting the thriving housing market in Houston.

Home Shortage And Housing Demand

The situation in the Texas housing market involves limited inventory and a shortage of skilled builders willing to construct homes at prices suitable for first-time buyers with median incomes in Houston. Consequently, these buyers are left with scarce options in the market.

Despite facing this reality, some agents encounter clients who opt to make low offers in hopes of securing a home through financing, only to blame the agent for their inability to acquire the desired property. However, the seller holds the upper hand in this scenario, setting the tone for negotiations. The message is clear: if you’re looking for a home, refrain from making lowball offers to the seller.

Buying Versus Renting in Texas

The average home price for single-family homes in the Houston housing market in August was $282,000, a 3% increase from last year, and the median price of single-family homes went up to $215,000, a 5% climb. These families looking to pay about $1500- $1650 with an FHA 3.5% down are mostly not likely to find a home and are sent back to renting till they can afford more.

The cost of living in the state of Texas is reasonable. That is the reason why it’s attractive for most families. However, we need more quality new home builders. Building in the mid $100 to $200 thousand price point is where homes are in major demand.

Real Estate Agents can meet this demand of these ever-growing buyers. Sales in September of 2019 were $150,000 – $249,999: which increased 15.6 percent: and $250,000 – $499,999: which increased 16.0 percent.

The Texas housing market is undergoing significant growth, and this trend seems set to continue. I find joy in assisting buyers in various price ranges. Purchasing within your means is perfectly fine. I prefer clients buying homes that suit their comfort rather than going for something well beyond their budget and risking mortgage delays or foreclosure. Need an agent who prioritizes your needs, no matter your budget?

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Top 5 Texas Cities with the Hottest Real Estate Market

Everything’s bigger in Texas, including the real estate market! Some cities should be on your radar if you want to invest in property or buy a new home. We have looked into and researched to compile a list of the top 5 Texas cities with the hottest real estate market. From booming economies to vibrant cultures, these cities offer something for everyone.

So grab a pair of cowboy boots and explore what makes these places such hot spots for real estate investors and homebuyers.

Introduction to the Texas Real Estate Market

Rest assured, if you’re contemplating a move to Texas, you’re in good company. Texas stands as one of the fastest-growing states in the nation. The Texas housing market is ablaze with activity. Whether you fancy the liveliness of a bustling metropolis or the serenity of a laid-back small town, there’s a Texan city that’s an ideal fit.

Given the expansive growth across the state, the current period presents an opportune moment to invest in a home in Texas. To assist you in pinpointing your options, we’ve curated a selection of the top Texas cities experiencing sizzling real estate markets. Discover more about these thriving locales and why they deserve a spot on your consideration list.


Austin, a bustling city renowned for its flourishing tech sector, draws in numerous young professionals and entrepreneurs. Due to its expanding population, Austin experiences intense competition in its housing market. In March 2023, there was a marginal drop in the median price, settling at $529,495, despite a notable surge of 9.9% in new property listings.

Dallas/Fort Worth

If you seek a bustling cityscape teeming with employment prospects, consider Dallas/Fort Worth. This urban hub hosts major national corporations, providing its inhabitants with top-notch facilities and a rich cultural scene. Notably, the housing market in the Dallas-Fort Worth area has seen intriguing developments lately. As of April 2023, the median listed home price is $380,000, reflecting a decrease of -9.5% from the preceding year. This suggests a promising window for prospective buyers in this market.


Houston’s appealing combination of a gentle climate and proximity to Gulf Coast beaches has drawn in a steady stream of newcomers from various parts of the world for quite some time. The city’s robust economy has played a pivotal role in driving a thriving real estate market, reflected in the median home value. As of April 30, 2023, the average home value stands at $302,588 in Houston, marking a 2.4% uptick in comparison to the preceding year. This consistent rise indicates a buoyant real estate market, offering homeowners the prospect of substantial equity growth.

San Antonio

San Antonio, one of America’s oldest cities, presents a distinctive fusion of Texas culture and contemporary conveniences for its residents. Its reasonable housing costs, pleasant climate, and deep-rooted history contribute to the thriving real estate market in the city. According to the SABOR MLS Report, there has been a marginal 1% decrease in average home prices in the San Antonio metro area compared to the prior year, setting the current average home price at $366,843.

However, median prices have held steady from the previous year, suggesting a consistent appreciation of home values in the market. This stability hints at the likelihood of continued upward trends in home prices, making real estate investments a promising prospect for both buyers and sellers.

Regardless of the kind of vibrant lifestyle you seek, there’s a Texan city that fulfills all your needs. With its robust economy and flourishing real estate scene, now marks an opportune moment to relocate to the Lone Star State. Let’s delve deeper into these cities for a comprehensive understanding!

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Overview of the Top 5 Texas Cities with the Hottest Real Estate Market

Texas housing market

Now, let’s first look at the three largest cities. Houston, Texas, is, at the moment, the largest city in the entire state and the fourth-largest city in the United States. The real estate market in Houston is scorching right now, with average home prices rising steadily over the past few years and no sign of slowing down. Thanks to its strong economy and job market, the city is attracting new residents from all over the country.

1. Houston
2. Dallas
3. San Antonio
4. Austin
5. Fort Worth

Dallas/Fort Worth, Texas, is another large area with a booming real estate market. Home prices in Dallas and Fort Worth have been rising steadily for several years, and there are no significant signs of slowing down anytime soon. The city attracts new residents nationwide thanks to its strong economy and job market.

Dallas and Fort Worth are becoming increasingly popular destinations for retirees and empty nesters looking for a more attractive, affordable cost of living than any other bustling major cities like New York or Los Angeles. San Antonio, Texas, is the third-largest city in the state and another one of the fastest-growing cities in the country.

The real estate market in San Antonio has been on fire for several years, with average home prices rising significantly during that time. The city is attracting new residents from across the country, thanks to its strong, durable economy and hot job market, as well as its affordable and cost-effective way of living compared to other major large cities like New York or Los Angeles. San Antonio also has much to offer retirees and empty nesters looking for a new place to call home.

Austin, Texas Housing Market

As the Texas state capital and one of the most populous cities in Texas, Austin is no stranger to rapid growth. The city’s strong job market and high quality of life continue to attract new residents, driving up demand for housing. According to Realtor.com, Austin is currently the number one city in the nation for home buyers, with a median home price of $529,495.

If you’re looking for a hot real estate market in Texas, look no further than Austin. This rapidly growing city attracts new residents from all over the country and globally, and it’s easy to see why with its lively music scene, vibrant nightlife, and endless outdoor activities. Alaina Phillips, a dually licensed realtor and loan officer at Gustan Cho Associatess,  shares her insights of the Austin, Texas  Housing Market:

Austin has something for everyone. And as the capital of Texas, it’s also home to many large businesses and employers. As a result of all this growth, the Austin real estate market is super hot right now. Home prices in the city area have been rising steadily and aggressively for the past few years, and there are no signs of it slowing down.

Now is the time to investigate buying a home in Austin. You’ll be happy you did when you’re continuously enjoying all that this great opulent city has to offer. No matter where you decide to purchase, thoroughly research the Austin real estate market and find a knowledgeable real estate agent to help you. With a strong growing local economy and plenty of growth opportunities, investing in Austin will surely be a smart move.

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Dallas-Fort Worth Texas Housing Market

The Dallas-Fort Worth metro area is another Texas hot spot for housing. With a population of over 7 million people, the DFW metro area is one of the largest in the country. And it’s only getting bigger; according to Realtor.com, Dallas-Fort Worth is becoming the fastest-growing metro area in the US over the next decade. The current median home price in Dallas-Fort Worth is $380,000.

Fort Worth is one of the most viable and attractive fastest-growing cities in the United States, and its real estate market is red-hot right now. The average home sells in just 43 days. The Dallas Fort Worth area is one of the most populous cities in the United States and is known for its vibrant “big” culture and booming economy.

The real estate market in Dallas, Fort Worth, is extremely competitive, with properties selling quickly and at high prices. If you’re considering buying or relocating to Dallas, Fort Worth, now is the time to do it! Here are some of the reasons why: The population is growing rapidly. Dallas, Fort Worth, attracts new residents from all over the country, resulting in increased demand for housing. The economy is also strong.

Dallas-Fort Worth Growing Economy 

With a very low unemployment rate and many job opportunities, Dallas, Fort Worth, is a great place to live and work. This strong economy has helped to drive up prices for homes in the area. There are many desirable neighborhoods.

From Uptown to Oak Cliff, there’s a neighborhood for everyone in Dallas, Fort Worth. And with new construction happening all over the city, you will surely find the perfect home for you and your family. Homes are selling fast. Properties in Dallas, Fort Worth, are being snapped up quickly, so if you find one you like, don’t hesitate to make an offer.

What Homebuyers Should Know About Houston Texas Housing Market

Houston is another major Texas city that’s experiencing strong growth. The city’s growing economy has diversified in recent years, becoming less reliant on oil and gas than in the past. Houston is one of the top Texas cities with a hot real estate market. The city’s economy is diversified and strong, making it a desirable place to live. Ronda Butts lived many years in Houston and shared the following:

Houston has everything from luxury high-rises to traditional single-family homes. You will find various styles, from modern to Mediterranean and everything in between. With its booming economy, more jobs are available, making it easier for people to buy homes in Houston.

The population has been constantly growing, and there is a strong demand for housing. Prices are rising, but there are still good deals to be found. Houston is a wonderful place to invest in real estate right now. The city’s strong economy and diverse housing options make it a great buyer choice.

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Cost of Living in Houston Texas

The cost of living in Houston is lower than the national average, but you will still find plenty of upscale neighborhoods. There are also many middle-class neighborhoods, which means buying an affordable house in Houston is possible. The market also offers older homes with character and charm that can be renovated to modern standards.

San Antonio Texas Housing Market Forecast 

San Antonio is also a strong city on the rise. With a population of over 1.5 million, it’s the third-largest city in Texas and the seventh-largest in the United States. The economy is also booming, thanks in part to the presence of major employers like USAA, Valero Energy, and H-E-B. And with a low cost of living and a high quality of life, it’s no wonder that people are flocking to San Antonio. Alaina Phillips, a dually licensed realtor and loan officer, explains a few things about the San Antonio, Texas, housing market.

The real estate market is hot right now, with median home prices rising and inventory tightening. If you’re considering buying a home in San Antonio, now is great.

According to the MLS Report from SABOR, the San Antonio area has seen a slight decrease of 1% in average home prices compared to the previous year. The average home price is now reported at $366,843. On the other hand, median prices have remained unchanged from the same period last year. From recent past data, the median home price in San Antonio was $215,000 in 2017, up from $200,000 in 2016.

Texas Housing Market Prices Expected to Rise as Demand Increases.

There’s a consensus that it remains a seller’s market despite escalating prices, yet it’s an opportune moment for prospective buyers. Despite limited housing availability and increasing prices, San Antonio continues to present favorable conditions for those seeking to purchase property.

Renowned for its diverse population, the city boasts a vibrant culture, attracting individuals from various walks of life and backgrounds. Offering an array of attractions, such as excellent dining options and outdoor pursuits, San Antonio is an appealing choice for anyone considering a home purchase in the region.

Where to Start Your Search for a Home in Texas Booming Cities

If you’re seeking a thriving real estate market for investment, the cities listed here are all solid choices. These Texas markets, from Austin to Houston, are experiencing significant growth and present numerous opportunities. Ethel Matthews, a real estate agent and loan officer at Gustan Cho Associates, recommends ensuring that any realtor you interview is thoroughly knowledgeable about the area:

When searching for a home in these cities, it’s important to consider working with a knowledgeable and experienced real estate agent and Lender. The real estate agent can help you find the right neighborhood and tell you what you can qualify for.

They’ll assist you in finding a home that aligns with your requirements and financial plans and navigate the home-buying procedures. Apart from collaborating with a real estate agent, conducting personal research on the cities you’re considering is important. Get acquainted with the various neighborhoods and their amenities. Doing so will streamline your search, allowing you to pinpoint the ideal place to settle down.

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No Signs of Texas Housing Market Correction Despite High Rates

Texas proves to be an excellent choice for buying real estate and investing. The state boasts diverse cities and a robust job market, contributing to its thriving real estate market. Our compilation highlighting the top 5 cities in Texas with sizzling real estate markets underscores this region’s tremendous potential.

If you should decide to buy in Texas, before you begin looking for a home and during the process, we have vast experience working with buyers to get them ready to purchase their dream home. We can take you through your home loan’s buying and financing process. We also can connect you to title companies/attorneys and real estate agents in your area that can help as needed.

Call or text Ronda Butts at 800-900-8569 or email at alex@gustancho.com for more information and further assistance. Ronda is an experienced referral agent, a dually licensed real estate agent, and a mortgage originator. She has successfully guided many homeowners through obtaining a home on both the lending and real estate side. She does not represent buyers or sellers but offers free consultation in 48 states at Gustan Cho Associates by connecting homeowners, buyers, and sellers to the needed sources.

Will The Texas Housing Market Continue To Boom

Ronda Butts is the top-producing veteran dually licensed realtor and loan officer at Gustan Cho Associates. The Team at Gustan Cho Associates Mortgage Group has a national five-star reputation for being able to close mortgage loans other lenders cannot due to its no overlay business model on government and conventional loans.

Whether you’re looking to invest or relocate, these five cities will surely offer something for everyone. So don’t wait any longer – start your search today and discover why Texans love living here!

The team at Gustan Cho Associates are commercial and residential mortgage lenders licensed in 48 states including Texas. We have over 210 wholesale lending partners and the lowest rates. Over 80% of our borrowers at Gustan Cho Associates could not qualify at other mortgage companies due to their lender overlays.

Ronda Butts has a network of realtors throughout the United States. All of Ronda Butts’s clients, whether real estate clients or mortgage clients, become her lifelong friend. Ronda Butts of Gustan Cho Associates firmly believes that knowledge is king. Ronda Butts is always studying new laws and regulations and keeping updated with real estate prices, foreclosures, and market trends in Houston and the United States. The team at Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays.

FAQ – Texas Housing Market Forecast For 2023 Through 2024

What is the current state of the Texas housing market in 2023? The Texas housing market is booming despite mortgage rates surpassing 7% in a volatile economy. The state is experiencing significant growth, making it one of the fastest-growing in the country.

Are mortgage rates affecting the demand for homes in Texas? Despite mortgage rates reaching their highest point in ten years, the demand for housing in all Texas counties remains strong. The increased demand is driven by a growing population and an influx of families relocating from the west and east coasts.

Why are home prices rising in Texas, especially in cities like Houston? The surge in home prices is attributed to an influx of families relocating to Texas, drawn by the state’s welcoming environment. This has made it challenging for middle-income first-time homebuyers to afford high-quality, newly-built homes.

How are cash buyers impacting the Texas housing market? Cash buyers from the East and West Coasts contribute to the housing market’s competitiveness by purchasing homes with substantial cash reserves. This trend reduces the availability of homes for median-income first-time homebuyers.

What role do investors play in the Texas housing market, particularly in Houston? Investors are drawn to homes priced between $100,000 and $200,000 in Houston due to the robust rental market, ensuring substantial investment returns. The competition for these properties is intense.

 Is there a need for more homes in the Texas housing market? Yes, there is a shortage of homes, particularly in Houston, due to limited inventory and a scarcity of skilled builders willing to construct homes at prices suitable for first-time buyers with median incomes.

Should homebuyers make lowball offers in this competitive market? The guide advises against making lowball offers, as sellers currently hold the upper hand in negotiations. Making reasonable offers aligned with the market conditions is recommended.

What is the average home price in the Houston housing market? In August, the average home price for single-family homes in Houston was $282,000, a 3% increase from the previous year. The median price of single-family homes increased to $215,000, reflecting a 5% climb.

Which are the top 5 Texas cities with the hottest real estate markets? The top 5 Texas cities with the hottest real estate markets are Austin, Dallas/Fort Worth, Houston, San Antonio, and Fort Worth.

Is now a good time to invest or buy a home in Texas? The Texas housing market is experiencing significant growth, presenting opportunities for investors and homebuyers. The guide recommends conducting thorough research and working with knowledgeable real estate agents to make informed decisions.

Will the Texas housing market continue to boom in the coming years? The guide suggests that the Texas housing market is expected to continue booming, with strong job markets, diverse economies, and a growing population contributing to the state’s real estate growth.


This blog about the Texas Housing Market Forecast For 2023 Through 2024 was updated on January 30th, 2024.

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One Comment

  1. Texas is one of our hottest and most busiest states. Over 30% of our business at Gustan Cho Associates are folks in Texas.

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