For many potential homeowners, the lack of availability of homes in the local market drives up prices and limits options.
But that's not the case in Texas, where some estimates say there are as many as 88,000 homes of all shapes and sizes for sale. This number represents nearly 10% of the total housing inventory of 800,000 units available nationwide. More importantly, the oversupply could create one of the most buyer-friendly and affordable housing markets in the country.
Nick Gourley, CEO of real estate data company Reventure, said in an interview with Newsweek that Texas has more housing vacancies than at any time since 2019, and the oversupply of housing has led to Texas is turning into a great place to look for value and profit, he said.Gerri continued XSo he pointed to several submarkets in Dallas where increased available inventory is putting downward pressure on prices.
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Delivering music to the ears of home buyers
The prospect of a buyer's market everywhere in America is music to homebuyers' ears. The situation in Texas is the opposite of that in many major U.S. real estate markets, where low inventory keeps prices out of reach even as interest rates hover in the 7% range.
This, combined with the lack of a state income tax and the abundance of job opportunities in a wide range of sectors in some metropolitan areas, such as Houston, Dallas, and San Antonio, have contributed to the continued population growth that existed before the pandemic. A boom was born. However, as the worst effects of COVID-19 began to subside, it gradually began to decline. The initial population surge sparked a construction boom, but once that surge slowed, Texas found itself in a unique position.
More homes planned
Not only are there a plethora of homes for sale in Texas, there are even more homes for sale online. According to Leventure data, 222,000 more housing permits will be filed in the Lone Star State in 2023, meaning there could soon be an oversupply of housing. While this isn't necessarily good news for home builders, it can be a huge benefit for potential buyers.
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One of the biggest draws of nearly all of the state's largest cities is the fact that, despite their size, average home prices in Houston, San Antonio, and Dallas are lower than the national average. Texas has so much vacant land that builders have plenty of space to continue building suburbs and exurbs between metropolitan areas.
Guerli said the highest concentration of availability is in central Texas, with Austin, San Antonio, Killeen and Waco all having availability well above the national average. Best of all, much of Texas' new inventory is affordable, at least compared to what's being developed in the Northeast and West Coast. So if you're tired of low availability and high prices, consider Texas.
