AUSTIN, Texas — Realtor.com says Texas is building more homes than any other state in the U.S.
According to a new report on housing, economic and migratory conditions in the Lone Star State, Realtor.com said Texas is the fastest-growing state in the union and it’s working to keep up with that growth by surpassing other states when it comes to new house permits.
The report found that 1 in 4 people shopping for homes in Texas are from out of state, and the main reasons people move to Texas from other states are housing, jobs and climate.
“The Texas economy is a model for other states,” Realtor.com CEO Damian Eales said. “Residents are attracted to Texas first and foremost for its affordable housing, followed by its favorable climate and abundant jobs. This has put Texas on a path to potentially become the largest state by the year 2045.”
Just how many homes is Texas building?
Realtor.com found that in 2024, Texas was the No. 1 state for new house permits, accounting for 15% of the U.S. total, even though the state only accounts for 9% of the U.S. population.
Realtor.com said Texas has claimed an increasing share of U.S. active listings almost every year since 2016. Back in 2017, Texas homes made up 7.6% of all U.S. homes for sale – by last year, that share climbed to 12.6%.
And while the Lone Star State’s inventory levels suffered during the pandemic, Realtor.com says the state’s housing inventory has now reached pre-pandemic levels.
How much do homes cost in Texas?
According to the Realtor.com report, despite having more home options, homebuyers in Texas still face relatively high prices. The median listing price year-to-date in 2024 was roughly $80,000 higher than the 2019 average, and mortgage rates remained above 6%.
That being said, the median-priced home in Texas has been less than the national median for a while. As of December 2024, the median listing price in Texas was $360,000, roughly $40,000 below the national median. Given that price and the average mortgage rate, the typical monthly housing payment in the Lone Star State was $2,100 in December, assuming a 10% down payment.
But can most Texans afford that? Not exactly.
“Though Texas offers considerable inventory in lower price tiers, the price distribution of for-sale homes does not match well to the state’s income distribution,” Realtor.com says. “Fifty-one percent of Texans make less than $75,000 per year, but just 17% of for-sale inventory is affordable to this income level. Even for 80th percentile earners, making up to $150,000 per year, just 66% of for-sale inventory is affordable.”
Austin remains the most expensive area
Realtor.com said Austin is still the most expensive major metro area in Texas, though it did see the “most significant recovery in lower-priced inventory” in 2024. Also, despite some recovery, Austin saw the largest drop in affordable inventory relative to the beginning of the pandemic.
Which major metro is the most affordable? San Antonio, both before the pandemic and now.
“Pre-pandemic, the San Antonio metro area had the largest share of inventory priced below $350,000, followed by Houston, Dallas and Austin,” Realtor.com said. “In 2024, this order remains the same, though all four major Texas metros have significantly smaller shares of lower-priced inventory than pre-pandemic.”