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Real Estate Blog & Resources

5 Compelling Reasons to Invest in Texas Real Estate

With its low property prices and ample space for development, Texas is where investors are increasingly choosing to build new homes. From San Antonio to Austin to Houston, Texas is home to a variety of areas that are booming with job growth and real estate demand, making it a great place for investment.  

Here are five reasons to invest in Texas real estate:

1. Strong Economy Supports Housing Market
The state has a firm economic foundation that cultivates a healthy housing sector. The economy has strong job growth across the private sector and strong wage increases that help families save money to buy homes. Texas' gross domestic product - a measure of economic activity based on consumer and government spending, investment and net exports, reached 3.7 percent in 2013, outpacing the 1.8 percent growth for the rest of the U.S., according to the Texas Comptroller of Public Accounts. This solid economic growth is crucial to support sales in the housing market. 

2. Job Growth Fuels Economic Expansion
Speaking of job growth, Texas Comptroller of Public Accounts Glenn Hegar released a report that said Texas generated new jobs in all of its 11 major industries, from transportation and utilities to education and health services to cap off 2014. In November 2014, the unemployment rate in Texas was 4.9 percent, down 1.2 percent from the same period last year. With the overall Texas job market seeing higher employment gains, this could mean more demand for housing in metro areas like Houston that are seeing greater job growth from key employers. 

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Job growth in Texas increased more than the national rate.

3. Housing Sales Already Breaking Records
While some housing markets in the U.S. are in a slump due to the weather, Texas real estate features a great market for homebuying all year long. The Texas Association of Realtors released a report stating the fourth quarter of 2014 smashed sales volumes records for single-family homes. The association said that high-performing quarter made 2014 the second-best year for Texas real estate. The rise in sales shows the high level of demand for properties in Texas, as 66,664 single-family homes were sold in the state in the final quarter of 2014, a year- over-year gain of 8.46 percent. While inventory is tight, investors could buy land for residential home construction to introduce more inventory in the market and boost home sales even higher. 

4. Wide Variety of Demographics to Reach
The Texas real estate market has a varied range of demographics with many different ages, races, socioeconomic groups and more, making it an ideal place for real estate investment because investors and builders can target a wide variety of customers. Whether investors want to purchase land or properties for luxury real estate or affordable family homes in planned communities, they could find a customer base willing to purchase these properties. 

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The high economic growth in Texas could fuel home sales.

5. Texas Cities Named Best Places for Investment
With all these positive economic factors driving housing sales, it's no wonder PwC named two Texas cities as the top places for real estate investment. PwC and the Urban Land Institute said Houston and Austin are the No. 1 and No. 2 U.S. cities for real estate prospects, beating out other real estate powerhouses like San Francisco and New York City. Texas real estate features land that is often lower in cost than other areas of the country, which could increase returns of investment while higher demand ensures cash flow.  

Investors looking to connect with a trusted real estate development firm should consider partnering with SouthStar Communities to build homes surrounding major metro areas of Texas, including high-demand cities like Austin and Houston. As a full-service residential community developer, SouthStar is experienced in asset and project management to get investments primed and ready for sale.

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Texas is a hot spot for investment for real estate investors.