Updated: Oct 23, 2020
Everything's bigger in Texas – a fitting slogan for the second largest state in terms of both population and land mass. Multiple major cities call Texas home, from the desserts of El Paso to the bustling Dallas-Fort Worth metroplex. Houston is the biggest city and only a few hours from both the capital, Austin, and San Antonio, Texas.
But do you know what else is bigger in Texas? The amount of money you keep in your pocket from real estate investments.
TEXAS BY THE NUMBERS
With a population of 28.3 million, you start to realize one thing – a LOT of people live in Texas. Median household income for Texans is about $57,000, which is considered mid-range, but the lower cost of living helps residents out a lot.
The Texas economy is valued at a whopping $1.6 trillion, which places it only second to California. Job growth was measured at 2.2 percent as of 2017, helped, in part, by lower business costs.
Texas also ranks first in the nation for favorable economic climate due to growth in employment and gross state product over the last five years. This means we will likely continue to see an influx of people moving – a good thing for any real estate investor. The Lone Star State is considered among the top states for business startups and is rated second in the list of Best States for Business and Best Growth Prospects.
WELCOME TO THE LONE STAR STATE
Texas is one of the most popular destinations for both families and singles. Net migration was recorded at 217,500 in 2016 and is expected to continue. Industry experts estimate that the total population will reach 33.7 billion by 2025.
TEXAS HOUSING TRENDS
Texas has seen continuous growth in property values. The housing sector will continue to be under pressure due to high demand for residential units as the population grows. Real estate investors interested in economic development have many opportunities to garner larger returns that should outperform the industry average ROI.
Another great option is to explore opportunities in foreclosure sales. While the number of foreclosure filings declined in June 2018 by 43.5 percent, the number of bank-owned properties have increased due to various factors like pricing and availability of new housing stock.
MOST PREFERRED NEIGHBORHOODS
We figured we should mention the top areas that a lot of investors are going after. But be sure to continue reading beyond these as we have areas that are often overlooked that could potentially outperform the “popular” ones on a massive scale. Dallas, Tx, Houston, Tx, and Austin, Tx, all found there way onto the 10 Best Places To Invest In Real Estate In 2020 list.
Dallas is and will likely continue to be a leader in the real estate market, especially in the mid-price to luxury-price range. The Cities of Frisco, Allen, Richardson, Carrollton and McKinney are among the nation’s hottest small-to-midsize housing markets as well.
Houston has a solid real estate market, even if hurricane Harvey did hurt it temporarily. All signs point to growth!
Austin is where startups go to bloom. Home prices should rise by over 3 percent according to data, although cost of living remains high in this city. Good news though, unemployment is extremely low!
REUNION INVESTMENT’S PICKS
Now that we’ve covered the big metros, it’s time to focus on our specialty – tertiary markets. These are smaller and, perhaps, less exciting than major cities, but we’ve found virtually unmatched returns and security for our clients through our own innovative strategies.
Wichita Falls offers a wide range of opportunities for investors to make a difference in single-family housing, multi-family housing, small business investments, and commercial real estate. With college students at Midwestern State University and military members station at Sheppard Air Force Base, this mid-sized city is the optimum area for investors to make a change and profit.
Killeen has grown into a city that can sustain large commercial growth and new subdivision development. As a large military community, it offers plenty of opportunities for investors to build new rental income from both civilians and military members.
Odessa is the center of Texas oil production and one of the largest cities in its region. Oil and gas companies keep many of the citizens employed, but those who work for the city, small businesses, and other non-oil organizations are having a hard time finding homes to buy or rent. The city is partnering with Reunion to develop downtown for workforce housing in the form of 8,000 total units. Once more details are ironed out, we will release more information to investors.
Reunion Investment is active in the above markets and here to strategize clients’ investments to best meet their wealth-building goals. Call us anytime at 214.438.4809 to set up your own consultation. Opportunity is officially knocking.