Texas Housing Market Vitality

Market Rank

eleven

Texas metro area house prices are forecasted to outperform the national market over the next twelve months. Currently, the market is outperforming the overall U.S. market. Compared to 12-months ago, Texas’ housing market has weakened. Current local economic conditions support an estimated 10.5% increase in house prices over the next twelve months. Based on the housing market vitality of the twenty-six metro housing markets which comprise it, Texas’ housing market ranks eleventh amongst all states and D.C. The three-month outlook is positive.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

Texas Metro Housing Markets

Texas is comprised of twenty-six metro housing markets that account for nearly 89% of the state’s population. The Lone Star State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

METRO AREASITUATIONOUTLOOKUS METRO RANK (/402)
Abilene, TX Underperforming Negative333
Amarillo, TX Underperforming Negative330
Austin-Round Rock, TX Outperforming Positive22
Beaumont-Port Arthur, TX Underperforming Neutral326
Brownsville-Harlingen, TX Outperforming Positive84
College Station-Bryan, TX Tracking Positive174
Corpus Christi, TX Underperforming Positive224
Dallas-Plano-Irving, TX Outperforming Positive54
El Paso, TX Underperforming Positive166
Fort Worth-Arlington, TX Outperforming Positive33
Houston-The Woodlands-Sugar Land, TX Underperforming Positive217
Killeen-Temple, TX Outperforming Positive18
Laredo, TX Underperforming Positive272
Longview, TX Outperforming Positive87
Lubbock, TX Underperforming Neutral317
McAllen-Edinburg-Mission, TX Tracking Positive142
Midland, TX Underperforming Negative394
Odessa, TX Underperforming Negative396
San Angelo, TX Underperforming Positive183
San Antonio-New Braunfels, TX Outperforming Positive132
Sherman-Denison, TX Outperforming Positive57
Texarkana, TX-AR Underperforming Positive234
Tyler, TX Outperforming Positive69
Victoria, TX Underperforming Positive172
Waco, TX Outperforming Positive78
Wichita Falls, TX Underperforming Positive186

Industry Specialization

Texas’ state economy is specialized in Mining, Fncl activities, and Trade Trans Util. Edu Health svcs, Manufacturing, and Leisure Hosp industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Demographics

Compared to the U.S., there is a higher incidence of poverty amongst Texas residents and they have less purchasing power. There are fewer high school graduates and a smaller proportion of the population is college educated. Texas’ population is comparatively more diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Updated February 07, 2023 with data through February 2023