Texas has a big reputation on many fronts. It is the second largest state in terms of population and land area. Its vastness covers semi-arid terrain in the Panhandle area to the Rio Grande River on the southern border. It spreads across laid-back country living in El Paso to the glittering metro areas of Dallas/Fort Worth, Austin, San Antonio and Houston. Whether you favor big-city bustle and convenience or small-town graciousness and simplicity, the Lone Star State has a spot for you.
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Texas by the Numbers
The entire state covers about 269,000 square miles, of which 2.5 percent is water. The state has 80,000 miles of waterways, including 15 major rivers and four large lakes. State visionaries have done a great job of turning these water features into parks, recreational areas for public use and conservation assets.1
With a population of 28.3 million, the population density is 108 people for every square mile, which puts the state at the mid-range for density rankings. Median household income for Texans is $57,000, which is also a mid-range value according to national data from the U.S. Census Bureau.2
The Texas economy is valued at $1.6 trillion, which places it at a close second to California. Job growth was measured at 2.2 percent as of 2017, spurred, in part, by lower business costs. The costs associated with operating a business is 11.5 percent, which is lower than the national average.3 The state has earned the following accolades from Forbes Magazine:
- Ranks first in the nation for favorable economic climate due to solid growth in employment and gross state product over the last five years
- Considered among the top states for business startups
- Ranks second in the list of Best States for Business
- Ranks second in the list of Best Growth Prospects
- Ranks third in the list of Best States for Business Costs
- Ranks ninth for availability of qualified labor
- Ranks 21st for Best Regulatory Environments for Business
Forbes also rates the state favorably for quality of life.3
A Warm Welcome to the Lone Star State
Diversity defines the state and the people, creating a rich multicultural experience. It is no wonder that the state remains one of the most popular destinations for families and career-focused singles. Net migration was recorded at 217,500 in 2016, but the influx is expected to continue with industry experts estimating that total population will reach 33.7 billion by 2025.4
The state has much to offer by way of entertainment, recreation and education.
- Some of the nation’s best schools for elementary, middle and high school are located here, and several are within the Houston Independent School District. Students have access to the schools within their district, and state officials support school choice.
- A significant number of higher education campuses are located in the metro areas, including four national research universities, seven emerging research universities and at least 25 public universities.
- The cuisine is as diverse as the population with food festivals being a popular destination for curious foodies and serious gourmands.
- Various sports leagues both divide and unite Texans. Football is family affair as are baseball and basketball.
- The metro areas have a wide range of entertainment choices, including museums, parks, botanic gardens, zoos and others.
- Every town is a festival kind of town with live performances, music festivals, food fairs, art fairs and other outdoor activities scheduled throughout the year.
Housing Trends
The housing market has performed exceptionally well since the post-recession years. Home sales in the state will grow by 6 percent in 2018 according to industry analysts. Population growth drives interest and profitability of real estate investing ventures. The housing sector will continue to be under pressure due to high demand for residential units as the population grows.5
As such, those who are focused on real estate investing would do well to explore opportunities in foreclosure sales. The number of foreclosure filings declined in June 2018, dropping by 43.5 percent compared to the previous month.5 However, the number of bank-owned properties have increased due to various factors, including pricing and availability of new housing stock.
Auction.com lists over 900 properties in Texas that are currently available for purchase. This volume indicates opportunity for investors who are prepared to take the plunge into foreclosure sales. With a higher volume, investors can be assured of a wider selection and quality level of the listings. Auction.com holds live auctions, dubbed Super Tuesday in Texas, on the first Tuesday of the month in several counties.
Most Preferred Neighborhoods
Real estate investment opportunities abound in the state, but here are the top and most preferred areas.
Dallas
Dallas will continue to be one of the bright spots for real estate activity in the state and nationwide. The National Association of Realtors predicts strong sales especially in the mid-price to luxury-price range. The North Dallas cities of Frisco, Allen, Richardson, Carrollton and McKinney are among the nation’s hottest small-to-midsize housing markets according to a survey by WalletHub. These markets promise a higher yield on real estate investments. Many of the jobs in this area are in the high-compensation sectors of technology, consultancy and finance.
Houston
Houston has always been a solid real estate market. Hurricane Harvey may have derailed the housing market somewhat, but it is on the road to recovery. NAR projections indicate a 2.8 percent growth with home sales increasing by 10.8 percent year-over-year.6
Austin
Austin has become the proving grounds for millennials especially with significant growth in the startup sector. Home prices are expected to rise by 3.3 percent according to NAR data although cost of living remains higher in this city compared to other metro areas.6 Nonetheless, Austin has one of the lowest unemployment rates even as the population continues to grow.
Waco
Waco may provide the answer to home ownership dreams for those who have been priced out in the bigger metro areas. NAR reports indicate that home prices in this area are below the national average by as much as $50,000. Additionally, cost of living in Waco is about 16 percent lower than the national average, which can be very attractive to the younger set. Waco is also a college town which means more opportunities for the creative real estate investor.6
Positioning for Profit
Seasoned investors often advise that in real estate, profit is made in the buying not in the selling stage. When you purchase properties at the right price then manage the redevelopment project efficiently, the return on your investment is already built in. Foreclosure sales may provide an excellent opportunity to buy at price levels that will ensure a decent yield. Check out the foreclosure listings on Auction.com and determine how you can jump on these opportunities to grow your portfolio and your profitability expectations.
The information in this blog post is being provided for informational purposes only and not for the purpose of providing legal or real estate investment advice, and no liability is assumed by Auction.com (or Ten-X, LLC) with respect to such information.
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Sources:
1 Texas By Numbers: Waterways
https://cw39.com/2015/06/30/texas-by-numbers-waterways/
2 U.S. Census Bureau Quickfacts: Texas
https://www.census.gov/quickfacts/tx
3 Texas
https://www.forbes.com/places/tx/
4 http://www.fairimmigrationmatters.org/texas-by-the-numbers.html
5 Texas Real Estate Trends & Market Info
RealtyTrac Real Estate – https://www.realtytrac.com/statsandtrends/foreclosuretrends/tx
6 The Best Markets in Texas For Real Estate Investment in 2018
NuWire – https://www.nuwireinvestor.com/best-markets-texas-real-estate-investment-2018/
