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Houston Texas Housing Market Real Estate 2025

Everything You Need to Know Before Moving to Texas

As the real estate market continues to shift, one thing is for certain: many people are opting to move to the state of Texas. There are many reasons why; from job opportunities to affordability and even the rich, unique culture of local communities. The past few years have shown a rising population in the lone star state, along with a compelling housing market.

If you’re getting ready to make the big move or perhaps on the fence about moving to Texas, it’s important to know what you’re jumping into first. In this article, we’re going to take an in-depth look at the current population and market, as well as various factors that have been drawing in new residents from all over the country.

Why Texas?

Texas is the second-largest state in both population and land area, trailing only California in population and Alaska in size. Over the past decade, Texas has experienced the highest population growth in the nation, adding more residents than any other state. This rapid expansion is fueled by strong economic opportunities, affordable housing, and a favorable climate, making Texas an attractive destination for newcomers.

As of 2024, Texas has an estimated population of nearly 31 million, ranking just behind California. However, with California’s population declining in recent years, projections indicate that Texas could become the most populous state by midcentury. The state’s growth is largely driven by international migration and an influx of residents from California seeking better job prospects, lower living costs, and a more business-friendly environment.

The state’s job market and real estate market are two massive draws for residents. Texas has the second-largest labor force in the U.S., behind California, with 15.1 million workers as of late 2023. Over the past decade, Texas has added more jobs than any other state, outpacing even Florida, while maintaining an unemployment rate below 4%. The state’s strong job market, combined with affordable housing, continues to attract new residents. Despite home prices rising during the pandemic, Texas housing remains more affordable than the national median, with a median listing price of $360,000 as of December 2024. However, a gap remains between income levels and available housing, particularly for lower- and middle-income buyers. To address this, increased new construction and improving mortgage rates will be key to expanding affordable homeownership opportunities across the state.

For more information on relocation to Texas, read one of our previous articles here.

The Texas Housing Market

Texas has led the nation in new home construction, accounting for over 15% of all permitted housing units in the U.S. in 2024, according to the U.S. Census Bureau. This surge reflects the state’s rapid population growth and ongoing demand for housing. Despite making up only about 9% of the U.S. population, Texas has consistently maintained a high share of residential construction over the past five years, with room for further expansion as more people continue to relocate to the state.

The state’s housing market has also seen a sustained increase in new construction listings, especially since 2020, when builders continued adding homes while existing-home sellers pulled back. Even as more homeowners reenter the market, new homes remain a significant portion of listings. Texas offers a notable pricing advantage, with new construction homes maintaining a smaller price premium over existing homes compared to the national average. On top of this, in an effort to improve affordability, builders in Texas are following the national trend of constructing smaller, more budget-friendly homes— helping to make homeownership more accessible.

Texas remains a standout for its affordable rental market, driven by strong demand and an increasing supply of new rental properties. The state’s combination of lower rental prices and abundant job opportunities makes it an attractive destination for renters. In 2024, Austin and San Antonio ranked among the top 10 rental markets, according to Realtor.com, with Austin emerging as the top choice for recent college graduates due to its affordability, career prospects, and vibrant lifestyle.

Nothing comes without potential risks, however.

Climate risks, particularly hurricanes and extreme heat, pose significant challenges for Texas homeowners, impacting property safety, insurance costs, and market stability. Nearly half of homes in the state are at severe or extreme risk of hurricane wind damage, while almost all face exposure to extreme heat. These environmental threats underscore the importance of factoring climate risks into housing decisions, as they can influence long-term property values and the overall stability of the real estate market.

Main Takeaways

Texas’ booming economy, driven by professional and high-growth industries, has transformed its labor market and housing landscape. To sustain this momentum, the state must maintain a business-friendly climate, invest in critical infrastructure, and ensure access to education and job training. While Texas leads the nation in homebuilding, rising prices and limited affordable housing pose challenges, requiring local governments to review zoning regulations and expand lower-cost housing options. Another major concern: the state must address climate risks like extreme heat and hurricanes by promoting resilient construction without compromising affordability. With strategic investments and forward-thinking policies, Texas can continue to attract businesses, workers, and residents, positioning itself as the most populous state over the next few decades while maintaining its economic edge.

Conclusion: Moving to Texas is an Investment

Texas continues to attract new residents with its strong job market, affordable housing, and business-friendly environment. The state leads the nation in job growth and new home construction, helping to meet increasing demand, though affordability challenges remain, particularly for lower- and middle-income buyers. While he housing market remains competitive, major cities like Houston, Dallas, Austin and San Antonio offer great deals for buyers and renters.

However, climate risks such as hurricanes and extreme heat pose challenges for homeowners and the real estate market. To sustain its growth, Texas must invest in infrastructure, housing affordability, and climate resilience while maintaining its economic advantages. Moving to Texas is more than just a relocation; it’s an investment in opportunity and long-term growth.

Get started on your move to Houston, Texas today. Oscar Combs Realtor is a professional, experienced real estate agent here to help you find the perfect home and guarantee a smooth transitioning process. Contact us today to learn more about how we can help you find and buy/rent the right property for your needs.

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