As the Houston housing market continues to boom, a new study verifies that it’s a top U.S. market for growth and stability.
The study, published by personal finance website SmartAsset, places Houston sixth overall in the U.S., with a 221 percent rise in home prices over a 25-year span and a zero percent chance of a 5 percent loss in value over a 10-year period.
This tracks with current local trends. According to the Houston Association of Realtors’ (HAR) February 2022 Market Update, single-family home sales jumped 22.9 percent with 7,372 units sold compared to 5,997 in February of 2021. Compared to the last “normal” February – in 2020 – sales volume was up 23.3 percent. With fewer housing options available for purchase, consumers placed heavy demand on single-family rental homes in February.
Elsewhere in Texas, Austin leads the U.S. and the top metro area for housing growth and stability. That’s up from the No. 2 spot last year.
The study notes that Austin-area home prices soared 368 percent from 1997 through the end of 2021. That was the biggest spike among all of the metro areas examined in the study. Meanwhile, it estimates there’s a zero percent chance that an Austin-area home would suffer a 5 percent drop in value within 10 years of being purchased.
In SmartAsset’s 2020 and 2021 studies, Midland, Texas, ranked first for growth and stability. This year, it lands at No. 3. According to the 2022 study, home prices in the Midland area jumped 266 percent from 1997 to 2021, with a zero percent chance of a 5 percent decrease in home value over a 10-year period.
Half of the metro areas in the study’s top 20 are in Texas, including the state's other major metros.
Dallas-Plano-Irving is seventh, with a 228 percent rise in prices and only a 1 percent chance of a 5 percent loss in value over a 10-year period.
San Antonio comes in 11th, with a 214 percent rise in home prices over a 25-year span. It also has a zero percent chance of a 5 percent loss in value over a 10-year period. Fort Worth-Arlington-Grapevine ranks 15th, with a 213 percent rise in home prices and, like Dallas, a 1 percent chance of a 5 percent loss in value in value over a 10-year period.
Odessa (No. 8), San Angelo (No. 10), Waco (No. 12), and Bryan-College Station (No. 17) are also among SmartAsset's best markets for growth and stability.
Home-buying expert Liz Hutz notes that the two main drivers of home price increases are economic growth and job creation, both of which have enjoyed a torrid pace in Texas. For instance, Texas in November surpassed its previous pre-pandemic employment high by inching close to 13 million jobs.
“We will continue to unleash the full might of our economy, attract new business investments, and ensure a more prosperous future for all who call Texas home,” Gov. Greg Abbott vowed in December.