Texas may be home to America's hottest housing markets, but Houston isn't one of them. According to a new ranking from financial site WalletHub, Houston is among the worst real estate markets in the state — and the U.S. — for 2018.
To determine the best and worst real estate markets, WalletHub compared 300 U.S. cities of various sizes across 22 key indicators of attractiveness and economic strength for housing markets. The data ranged from appreciation of home prices to local job growth.
The North Texas trio of Frisco-McKinney-Allen came in at Nos. 1, 2, and 3, respectively, thanks in great part to their high rankings for affordability and economic strength. Houston, meanwhile, appeared at No. 215 on the overall list. Only two other Texas cities were worse: Amarillo (No. 242) and Corpus Christi (No. 277).
Houston had an overall score of 54.71, with rankings of No. 206 in the "real estate market" dimension and No. 219 in the "affordability and economic environment" dimension. By comparison, No. 1 Frisco boasted an overall score of 75.06, taking the No. 1 spot for "affordability" and the No. 8 spot for "real estate."
WalletHub analyst Jill Gonzalez points out that in Frisco, almost 15 percent of the homes were built between 2010 and 2016, contributing to the suburb’s ranking as the top real estate market in the U.S.
No matter how you slice it, North Texas is tops for real estate. There were five other DFW cities in the top 25: Richardson (No. 7), Denton (No. 10), Carrollton (No. 12), Fort Worth (No. 15), and Irving (No. 21). And when broken down by size, Fort Worth was No. 3 among large U.S. cities; McKinney was No. 1 among midsize cities; and Frisco, Allen, and Richardson were in the top five among small cities.
In other major markets in Texas, Austin was No. 36, Dallas was No. 84, and San Antonio was No. 173 on the overall list. Austin ranked eighth among large U.S. cities, with Dallas at No. 17, San Antonio at No. 36, and Houston at No. 47 out of 63.