(The Center Square) – Texas is building more new homes, and issuing more new housing permits than any other state, according to a new report by Realtor.com.
The company released its finding on economic and housing conditions in Texas in its “The Texas state of Real Estate,” while also announcing it was relocating its headquarters from California to Texas, The Center Square reported.
“The state has grown rapidly in the last several years as people from across the country and across the world have seen what Texas has to offer,” Realtor.com chief economist Danielle Hale said. In the last few years, Texas’ economy “has boomed, especially in high-demand industries like technology, education, manufacturing and construction. Already-scarce housing inventory from years of under-building was flooded with cash offers, and listing prices and rents soared. Texas has responded by building more and smaller homes to meet demand, helping the market settle and housing inventory climb back to pre-pandemic levels ahead of the nationwide recovery.”
The report notes that Texas is the fastest-growing state in the U.S. and is projected to surpass California as the most populous state in 2045. “People move to Texas for plentiful jobs, cheaper housing, and a different climate, and they primarily come from California and abroad,” it says.
In 2024, Texas broke multiple employment records, leading the U.S. in job creation, The Center Square reported.
Last month, the Texas labor market broke records for having the greatest number of total jobs, the greatest number of Texans working, and the largest labor force in December, The Center Square reported.
“As we break record after record for total jobs, the number of Texans working, and our labor force, we begin the new year as America’s job creator,” Gov. Greg Abbott said. “Jobs are growing here, businesses are growing here, the future is growing here. Texas partners with businesses to help them grow and succeed, providing career training for high-demand industries and cutting burdensome regulations.”
In order to respond to Texas’ growing population, more affordable homes are being built in Texas than in other states, Realtor.com notes. Last year, Texas issued more permits for new housing units than any other state. Texas permits accounted for 15% of the 2024 U.S. total although Texas’ population is roughly 9% of the U.S. population, the report states.
More than 25% of those looking for homes in Texas are from out of state, according to Realtor.com® data. “The two largest sources of immigration to Texas are international migration and relocation from California,” the report found.
As Texas’ population continues to increase, Abbott and the leaders of the Texas Legislature have made affordable housing a priority of the current legislative session.
In Abbott’s state of the state address last week, he listed affordable housing as a top priority for the legislature to consider. This includes slashing regulations, speeding up the permitting process, and offering a one-year tax exemption on home improvements like heating and air conditioning, The Center Square reported.
“America is facing a severe housing affordability crisis, fueled by a staggering shortfall of approximately 4 million homes,” Realtor.com CEO Damian Eales said. “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.”
The report notes that Texas’ housing market is still more affordable than the national market overall.
“The median-priced home in Texas has been less than the national median for a considerable time, despite significant recent price growth,” it says. “As of December 2024, the median listing price in Texas was $360,000, roughly $40,000 below the national median.”
In 2024, nearly half of all for-sale inventory in Texas was listed at $350,000 or less compared to 40.1% of national inventory, according to the report. As more inventory became available, roughly 50,000 more homes were priced under $350,000 for sale in Texas in 2024 compared to what was listed in 2023, it notes.
Texas also has an increasing share of U.S. active listings. In 2024, Texas homes made up 12.6% of all U.S. homes for sale. “Texas has managed to offer buyers more options than much of the country, helping to sustain buyer demand,” the report notes.
Despite having more inventory, Texas buyers are still impacted by inflationary woes, with the median sale price year-to-date in 2024 being $80,000 higher than the 2019 average, and mortgage rates remaining above 6%. Additionally, 51% of Texans earn less than $75,000 a year, but only 16% of for-sale housing inventory is affordable at this income level, the report notes.
Median apartment rents in major Texas metropolitan markets have consistently been lower than the average rent in the top 50 U.S. markets, the report notes, with the exception of Austin, which remains one of the least affordable cities in Texas and the U.S.
