Real estate in Texas is anything but homogenous. The Lone Star state is home to towering urban skyscrapers containing compact condos, sprawling ranch estates in the countryside, and every conceivable type of property in between.
But they all share one thing in common: They’re all probably good investments right now. Texas real estate is at a particularly advantageous moment right now. Spurred by advancements in real estate technology, buoyed by demographic changes, and accessible thanks to dipping median home prices, Texas real estate looks like a terrific investment in 2022.
Explore why it might be time to invest in Texas real estate.
Demographic Changes in the State
There are two things to know about Texas’ population: it’s growing, and it’s getting younger. And both of those stats will have an impact on the real estate market.
Texas is the recipient of high domestic and international migration. According to the San Antonio Business Journal (citing a Federal Reserve Bank of Dallas study), 3,800 more people move into Texas than leave it each week. Each week. And the state enjoys the highest retention rate among states. This net migration has caused the housing market in some Texas cities to move “at stupefying speeds.” Put another way, the Texas real estate market will probably never have a demand issue – which should offer comfort to investors.
Texas’ population is also getting younger, with more millennials and Gen Zers calling the Lone Star state home. Simultaneously, millennials now comprise real estate’s largest buying demographic – and Gen Z isn’t far behind. If you merge these two statistics, you see the potential for continual re-energization in Texas’ real estate markets.
Proptech Comes to Town
Consumers looking to enter the Texas real estate market right now have it good. Historically, the real estate industry was – to be frank – unimaginative, stalwart and opaque. Finding the right real estate agent, a suitable mortgage, the perfect property – these were challenges. But thanks to the flourishing proptech industry (short for “property technology”), those challenges are quickly being addressed.
Take Nobul, as a great example. The real estate digital marketplace brought its platform to Texas earlier this year, promising to make the industry more consumer-centric. As CEO Regan McGee put it in a press release, “Our marketplace is both revolutionary and evolutionary. Consumers have grown accustomed to online marketplaces, price and product comparison tools, professional and consumer reviews to make purchases. Nobul is the next logical step in this evolution…”
With proptech companies like Nobul that facilitate straightforward real estate transactions, the whole process is far simpler than it was a decade ago.
Median Home Prices Falling
Lastly, now might be the ideal time to invest in Texas real estate because – while demand is high and forecasted to grow – the situation on the ground is relatively cool. At least in comparison to the past few years. As the fed delivered rate hikes to curb inflation, Texas’ housing market subsided in intensity slightly, and the median home price dipped. Still, experts predict year-over-year increases in median sale prices. And as the old trading floor adage explicitly states: “buy low, sell high.”
Talk to a real estate professional about whether entering the Texas market is right for your financial situation. If it is, you may be able to benefit from a market ripe for growth, aided by proptech convenience and strengthened by demographic changes.
