with flying colors

Houston ranks No. 4 nationwide on new affordability and housing report

Top-rated metros like Houston offer the perfect balance between affordability and current housing inventory.

Photo by @joeltexas via Visit Houston/Instagram

A new national real estate report card has rated Houston top of the class for housing demand and affordability.

Realtor.com's first-ever Metro Affordability & Homebuilding Report Card compared the 100 largest metropolitan areas in the U.S. based on two scores that measured the most important factors for potential home buyers: an "Affordability Components" score that examined the current affordability of housing for residents, and a "Homebuilding Components" score that analyzed the rate of new home construction to meet future demand. Both scores were then used to calculate the final score and assigned a letter grade.

Including Houston, 10 total U.S. metros received grades in the "A" range — A+, A, A- — representing the most balanced locales for "favorable current affordability conditions and healthy future inventory growth to sustain them."

"Homebuilding and affordability are inseparable, and if we want to improve affordability in a lasting way, we need to build more homes," said Realtor.com chief economist Danielle Hale. "The metros at the top of these rankings show that buyers benefit most when communities pair homes that are attainable for today's local earners with enough new construction to support tomorrow's demand."

Only two metros earned "A+" grades with a total score of 77.5 or higher: De Moines-West DeMoines, Idaho (83.4 points) and Raleigh-Cary, North Carolina (82.8 points).

Houston was rated "A" overall with an "Affordability Components" score of 64.4 points and a "Homebuying Components" score of 85.2 points. The only other metros that earned an "A" for affordability and homebuilding were Columbia, South Carolina and Indianapolis, Indiana.

Realtor.com's report said the Houston metro has median household income of $78,845, and home listings have a median price of $363,106. The report's findings also show that newly built homes in the region cost 6.9 percent more than existing homes on the market.

Houston has a 1.88 housing permit-to population ratio, meaning the metro permits 88 percent more new homes than what would be considered typical based on the metro's population and national average construction levels.

Houston's "Realtors Affordability Score," or the share of for-sale inventory affordable to households at different income levels, is 0.691, just slightly higher the national average of 0.675.

Housing market grades across other Texas metros
Austin-Round Rock-San Marcos was the only other Texas metro to earn a grade in the "A" range. It is rated "A-" with a combined score of 72.5 points.

Unlike many other U.S. metros, newly built homes in the Austin area are actually more affordable than existing homes on the market. Austin has a negative new construction premium, where new build homes are 6 percent cheaper than existing ones.

The Austin metro also has a permit-to-population ratio of 2.37. Combined with the negative new construction premium, these factors signal that "builders are delivering homes at a rate well above the metro's population share — and at prices slightly below existing homes."

This is a snapshot of the factors that impacted Austin's grade:

Realtors Affordability Score: 0.639
Median listing price: $501,200
Median household income: $102,412

Elsewhere in Texas, Dallas-Fort Worth was given a "B+" rating, while San Antonio-New Braunfels and McAllen-Edinburg-Mission were both rated "C+." El Paso's housing market performance was only worthy of a "D" grade.

The top 10 U.S. metros with the highest-performing housing markets are:

No. 1 – De Moines-West Demoines, Idaho (A+)
No. 2 – Ralgieh-Cary, North Carolina (A+)
No. 3 – Columbia, South Carolina (A)
No. 4 – Houston, Texas (A)
No. 5 – Indianapolis, Indiana (A)
No. 6 – Austin-Round Rock-San Marcos, Texas (A-)
No. 7 – Jacksonville, Florida (A-)
No. 8 – Oklahoma City, Oklahoma (A-)
No. 9 – Palm Bay-Melbourne, Florida (A-)
No. 10 – Columbus, Ohio (A-)

rustic ranch livin'

17-acre Hill Country ranch with stunning views listed for $3.7M

HC Carter Camphouse property for sale in Dripping Springs, Spanish-style main house exterior

Photo courtesy of Republic Ranches

The 17-acre ranch is located at 1601 Creek Rd. in Dripping Springs.

A spacious property for sale in the bustling Austin suburb of Dripping Springs is now offering just over 17 acres of land for $3.7 million.

The HC Carter Camphouse, located at 1601 Creek Road, presents a rare opportunity for its next owners to live less than two miles from downtown Dripping Springs. The 17.03-acre ranch was once part of a much larger, 205-acre ranch that contained "one of the finest Longhorn cattle herds in Texas," according to the listing description.

The property features two renovated homes: a two-bedroom, two-bathroom, Spanish-style main house that was originally built in 1956; and a restored "Pioneer Cabin" that was built in the mid-to-late 1800's and currently serves as the guest house.

The primary home has a gated stone courtyard with a water fountain, and a tiled wraparound porch overlooking the front yard and in-ground fire pits. Terracotta tile runs throughout the interior of the home, and rustic wood details cohesively tie the rooms together. The spacious primary bedroom features wide French doors that open to the front porch, a high angled wood panel ceiling, and a Santa Fe-style fireplace.

HC Carter Camphouse property for sale in Dripping Springs, main house primary bedroom The fire place in the primary bedroom will be very handy during the winter.Photo courtesy of Republic Ranches

The restored cabin maintains its vintage charm with stone flooring, all-wood ceilings, log beams, and antique furnishings. The home contains two bedrooms with window AC units, two fireplaces, "working bathrooms," and a kitchen.

Onion Creek runs through the property to provide stunning Hill Country views and a barrier of separation from Creek Rd. However, it also means a majority of the land south of the creek — including the areas where both homes sit — is in a FEMA 100-year floodplain and a Dripping Springs localized floodplain. The property's survey map fills in the details.

"The property has approximately 1,600 feet of frontage on Onion Creek, providing year-round water, and stunning views of the creek," the listing says. "The creek has never gone dry on this part of the creek since the owners have owned the property."

The ranch first entered the market in late July as a 9.999-acre parcel of land, but the listing has since been updated to add 7.031 more acres in an adjoining lot. The land addition improves the property's privacy, nearly doubles the Onion Creek frontage, and increases the size of the "most probable new home site location," according to the listing. The expansion also effectively reduces the price-per-acre by a third.

Photo courtesy of Republic Ranches

The 17-acre ranch is located at 1601 Creek Rd. in Dripping Springs.

Whoever purchases the ranch will also become the owners of an additional one-acre lot located "outside of, but contiguous to" the 9.999-acre lot. This portion of land is leased to the property's caretaker, who previously managed the original 205-acre ranch for 25 years. The listing specifies that the caretaker "does not have the right to sell this 1 acre, which will revert to the owner in case of his death."

real estate ranch for sale house for sale luxury housing luxury real estate dripping springs