Looking for a great place to invest in real estate? A growing number of experienced property tycoons are looking to sink their money into opportunities across the pond, with the USA’s property market having bounced back post-pandemic much more quickly than anticipated. Despite the pressures brought by Covid-19, real estate has remained resilient across the country, and in Texas, the market is booming.
A state full of opportunity, from bustling metropolitan areas to small rural towns, there are some great chances to make some good potential returns on investment and whether you’re looking for growth potential or income properties, there’s something for everyone in the Lone Star State.
Read on to learn more about the best places to invest in real estate in Texas in 2022 and beyond.
1. Austin
Austin is known for its vibrant music and arts scene, as well as its burgeoning tech industry and host of outdoor activities and pursuits – so with this in mind, it’s perhaps no surprise that it’s also one of Texas’s top real estate markets. Austin, in particular, is worth paying attention to, as with its thriving economy, driven by its tech industry giants like Dell and IBM, it continues to attract new residents and businesses to the area.
According to the experts at Austin Top Realtors, interest in the region has increased dramatically of late. The Austin real estate market has seen consistent growth over the past several years, with a population increase of nearly 2.5 percent per year and job growth rates above the national average. And, with a median housing price of $563,000, the city’s diverse economy, low unemployment rate and great job opportunities have contributed to its real estate market success.
In addition, Austin’s strong rental market, in which the average monthly rent is $1,826 and vacancy rates are low, makes it a desirable location for investors looking for steady income from rentals. In the residential market, Austin has seen price appreciation over the past year and high demand for single-family homes, and the city’s desirable location and thriving economy make it a top choice for domestic and international buyers.
Overall, the Austin real estate market offers a strong potential for investors looking for growth and stability in their investments, so if you’re considering investing in real estate across the pond, then make this your first port of call.
2. Houston
Houston is known for its energy industry, diverse population, and thriving economy – and it also happens to be one of Texas’s top real estate investment markets. Its job growth rate is consistently higher than the national average, which has led to surging demand for both residential and commercial properties. Houston’s rental market is also strong, with a healthy balance between rental supply and demand.
There’s no denying that Houston’s housing market is a healthy one, with the median home sales price at $426,494 and a strong forecast for appreciation in the coming years. The rental market in Houston has traditionally been very consistent, with high demand and low vacancy rates, with the average rent for a single-family home currently around $1,500 per month.
Investors can find many opportunities in Houston, including single-family homes, multi-family properties, and commercial real estate, and can also take advantage of Houston’s affordable housing options and relatively low property taxes compared to other major cities in Texas. Overall, Houston offers a favourable real estate investment climate for novice and experienced investors.
3. San Antonio
Alamo City ranks as one of the top real estate markets for investments in Texas. The city’s population growth and strong jobs market make it an attractive option for anyone looking to invest in rental properties, with the average property price in San Antonio still fairly affordable at a median sales price of $313,900. Rental rates are also rising, with a current average rent of $1,281 per month.
Investors can expect strong returns in San Antonio, with a projected annual rental yield of 6.7 percent. In addition, housing values are projected to appreciate by 2.4 percent over the next year.
The city’s diverse economy, anchored by healthcare, tourism, and military industries, provides stability and steady demand for housing. Overall, San Antonio offers a combination of affordability and strong rental demand, making it a great option for real estate investments in Texas.
It is also worth noting that towns in the surrounding areas, such as New Braunfels and Boerne, have also been seeing increased interest from investors in recent years.
4. Dallas
One of the top real estate markets in Texas, Dallas enjoys a strong jobs market and steady population growth, leading to high demand for housing. In addition, the city boasts a diverse economy with stable industries such as technology, finance, and healthcare – all factors that make investing in rental properties a lucrative opportunity in Dallas.
The Dallas real estate market is ranked second in Texas for rental investment potential. The city has an unemployment rate of just 3.2 percent, and the Dallas housing market has consistently seen price appreciation over the past few years, with a projected annual growth rate of 4.7 percent and with median house price of around $410,200 as a growing number of young professionals continue to move to the area to enjoy an improved standard of living. This, combined with the high rental demand in the city, makes it a great market for both buying and renting out properties.
Suburbs like Richardson and Plano have consistently ranked among the best for investments in Texas, offering lower-priced properties and high rental income potential. Some other popular neighbourhoods to consider for investment in Dallas include Oak Lawn, Lake Highlands, and Preston Hollow.
5. Fort Worth
According to realtor.com, the median home value in Fort Worth is $349,000, which is only slightly lower than the state and national averages – and considering that home values have been increasing here over the past year, it’s becoming an interesting location for property investors to consider.
Rental rates in Fort Worth are also on the rise, with a current average rent of $1,423, and the demand for rental properties remains high, bringing in consistent cash flow for investors and the potential for long-term appreciation.
Investing in real estate in Fort Worth is a smart move for investors looking for steady growth and potential returns. With a growing population, low unemployment rate, and strong economy, the city offers promising rental properties and home sales opportunities. The median home sale price is also lower here compared to other cities in Texas, making it a more affordable option for investors looking to get more for their money.
The bottom line
Looking at the figures, it’s clear that both Austin and Dallas are currently the best markets for real estate investment in Texas, with these top picks enjoying strong economies, steady population growth and rising property values.
However, it is important to note that all real estate markets are subject to fluctuations and potential risks, and as an investor, thoroughly researching and carefully considering each opportunity is essential before parting with your cash.
Consulting a list of real estate agents in Texas so that you can choose the one that fits the best is a savvy first step towards bringing your vision to life – once you’ve found one that’s the perfect fit for you, Texas really is your oyster when it comes to growing your property investment portfolio.
