Texas’ Housing Boom: What It Means for Houston Buyers & Sellers

Texas is experiencing a population surge like never before. Over the past decade, nearly 4 million people have moved to Texas, making it the fastest-growing state in the U.S. This trend isn’t slowing down—in fact, projections suggest Texas will surpass California as the most populous state by 2045!

So, what does this mean for Houston’s real estate market? Whether you're buying or selling, these shifts could have a major impact on your real estate strategy.

Why is Texas Growing So Fast?

Several factors are fueling Texas’ population boom:

✔️ More affordable housing compared to high-cost states like California.
✔️ A strong job market, attracting professionals and businesses.
✔️ Fewer natural disasters, making it a safer long-term choice.

The result? More people—and more home shoppers—are looking to plant roots in Texas. Before the pandemic, 1 in 5 Texas home shoppers on Realtor.com was from out of state. By April 2023, that number jumped to 1 in 3! Even in 2024, 30% of home buyers searching in Texas are from outside the state.

This surge of interest brings both opportunities and challenges to the Houston market.

For Houston Home Buyers: More Inventory, But Watch Affordability

If you’re looking to buy a home in Houston, here’s what you need to know:

• More Homes Available – Texas leads the nation in new home construction, meaning buyers have more options, especially in Houston’s growing suburbs.

• Affordability is Still a Challenge – While more homes are being built, not all are priced for first-time buyers. Consider these stats:

  • 23% of Texans earn under $35K, but only 2% of homes are affordable for them.

  • 51% of Texans earn under $75K, but only 17% of homes fit their budget.

• Out-of-State Competition – Buyers from California, New York, and other high-cost states are house-hunting in Texas. Many have bigger budgets or cash offers, making it tougher for local buyers to compete.

• Mortgage Rates Matter – If interest rates drop, home affordability will improve. Getting pre-approved now can give you an edge when rates shift.

For Houston Home Sellers: Strong Demand, But Pricing is Key

If you're selling a home in Houston, this market presents a unique opportunity:

• High Demand Continues – With Houston’s population booming, there are plenty of active buyers looking for homes.

• Out-of-State Buyers Are an Advantage – Many relocating buyers are coming from more expensive markets, meaning Houston homes still feel affordable to them. If you’re selling, highlight your home’s value compared to other metro areas.

• Price Your Home Smartly – While demand is strong, buyers are still price-sensitive. Setting the right price upfront can help you sell faster and avoid price reductions.

• Suburban Homes Are Hot – Many buyers are choosing suburbs over city living for more space and affordability. If you’re selling in a fast-growing area, your home could attract even more interest.

What’s Next for Houston’s Market?

Houston remains one of the most desirable cities in Texas, thanks to job opportunities, strong infrastructure, and home prices that are still lower than many other major U.S. cities.

However, affordability challenges mean the market isn’t without hurdles—buyers need to act strategically, and sellers need to price competitively to stay ahead.

Let’s Make Your Next Move!

If you're thinking about buying or selling in Houston, let’s connect! I’d love to help you find the right home, maximize your sale, and navigate this dynamic market with confidence.

Let’s turn your real estate goals into reality! 🚀🏡