This Texas Housing Market is the Best in the U.S. [2024 Rankings]

As the sun shines brightly over the Lone Star State, the Texas real estate market continues to attract the attention of homebuyers and investors alike. In recent analyses, Texas has emerged as a frontrunner, with cities like McKinney and Frisco being highlighted as some of the best real estate markets in the country. This article delves into why the Texas real estate market is considered the best in the U.S. for 2024, providing insights supported by credible data.

Key Takeaways

• McKinney, TX, ranks as the best real estate market in the U.S.
• Frisco, TX, follows closely, boasting a high percentage of new constructions.
• Cary, NC, also ranks among the top markets due to its affordability and job growth.
• Texas cities offer excellent opportunities for both new homebuyers and seasoned investors.

The Winning Formula of Texas Real Estate

The recent report from WalletHub evaluated 300 U.S. cities based on 17 key metrics such as housing affordability, home price appreciation, and job growth. Currently, Texas cities are showing significant promise both for new homebuyers and investors, as they offer an attractive combination of affordability, job opportunities, and modern housing options.

Cassandra Happe, a WalletHub analyst, emphasizes that while current home prices are essential, many other factors play a pivotal role in determining the vitality of a city's real estate market. She notes, “The best cities may not always be the cheapest, but they offer excellent housing options and long-term stability.” This insight accurately describes what many Texas cities represent today.

1. McKinney, TX: The Best Real Estate Market

Growth and New Constructions

McKinney, TX, has distinguished itself as the top real estate market in the country. The city boasts a remarkable 35% share of homes built between 2010 and 2021, which translates to a wealth of options for new buyers seeking modern residences that require minimal maintenance. Additionally, McKinney has the highest number of building permits issued per capita, indicating a strong pipeline of new housing developments.

Affordability and Job Market

While McKinney is not the cheapest city, it maintains a balanced affordability ratio with a median home price at 353% of the median income. This positions it as the 76th cheapest out of the 300 cities assessed. Furthermore, maintenance and utility costs are reasonably low, ranking amongst the 40 least expensive cities. The city's job market is thriving, with a job growth rate nearing 14% annually, placing it as the 13th highest in the nation.

For more details, check the WalletHub report on McKinney.

2. Frisco, TX: A Close Contender

Frisco, TX, earns the title of the second-best real estate market in the U.S. with nearly 42% of homes built in the last decade. The allure of buying a recently constructed home is significant, as it often alleviates the burden of immediate repairs or renovations.

Living Costs

Home prices in Frisco are favorable when compared to residents' incomes, ranking as the 84th cheapest on WalletHub's list. Moreover, the cost of utilities, including phone services and energy, is notably low, placing Frisco as the 10th cheapest city for these services.

A Booming Job Market

The job growth rate in Frisco stands impressively at 3.7% annually, making it an attractive destination for those pursuing new employment opportunities alongside homeownership.

For further insights, please visit the Frisco Official Website for information on their awards and honors related to real estate.

3. Cary, NC: An Outlier Worth Mentioning

While Texas cities lead the charge, Cary, North Carolina, also makes a strong case as the third-best real estate market due to its low cost of living. Cary offers significantly lower home energy costs and has a favorable job market, which allows residents to consistently meet their mortgage obligations.

Purchase and Maintenance Costs

Despite being slightly pricier than its Texan counterparts, Cary remains in the lower tier of affordability rankings, placing 94th in WalletHub's study. Buyers can expect an appreciation rate of 1.3% per year, providing potential long-term gains on their investments.

You can read more about Cary's market trends at this Zillow link.

Why Texas?

The Texas real estate market's overall appeal stems from several factors:

• Economic Diversity: Texas hosts a myriad of industries, providing ample job opportunities that drive demand for housing.
• Population Growth: The state's welcoming policies and favorable climate continue to attract newcomers, increasing the need for housing.
• Regulatory Advantage: Texas has a relatively lower regulatory burden, which facilitates the smooth development of new homes.

Conclusion

As we look into 2024, the Texas real estate market stands tall, particularly with cities like McKinney and Frisco leading the way. Their combination of job growth, new constructions, and affordability position them as prime locations for homebuyers and investors alike. With a healthy market supported by a growing economy, Texas is poised to maintain its status as a top choice for real estate.

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