Texas is Home to the 3 Hottest Real Estate Markets in the US for 2024

For most people in Texas, the dream is to own a home.   For the last two years the real estate market has been slow.

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The housing slowdown can be attributed to many factors, but the main factor is the interest rates.   Luckily, that is about to change and 2024 is expected to bring an uptick in home sales.

According to the National Association of Realtors, the Federal Reserve halted interest rate hikes and hasn't raised them since last August.   If history serves, the interest rates for homes will start falling as inflation falls.  This might happen in the first 3 months of 2024.

Texas is home to 3 of the top cities where the real estate market will be hot

Houston, Texas

Houston is # 6 in the country for the hottest real estate market for 2024. This market also includes The Woodlands and Sugar Land.

• Home price growth in 2023: 3.7%
• Share of renters who can afford to buy a median-priced home: 23.8%
• Share of returning buyers if mortgage rates fall: 4.3%
• Share of affordable listings that first-time buyers can afford to buy: 18.0%

According to the NAR, "Affordability and strong job and wage growth in Houston will boost activity in this market in 2024. While housing affordability for renters in Houston surpasses that of most markets across the country, the noteworthy aspect is the fourfold increase in wages, outpacing the national level."

Dallas, Texas

Dallas is #2 in the country for the hottest real estate market for 2024. This market also includes Ft. Worth and Arlington.

• Home price growth in 2023: 1.9%
• Share of renters who can afford to buy a median-priced home: 21.5%
• Share of returning buyers if mortgage rates fall: 4.9%
• Share of affordable listings that first-time buyers can afford to buy: 14.0%

According to the NAR, "Dallas had the second fastest-growing job market. The local economy was able to create more than 4% additional jobs compared to the previous year. With 22% of renters able to afford to buy the median-priced home, housing activity will increase in this area as mortgage rates will fall in 2024."

The #1 city expected to have the hottest real estate market in Texas and the entire United States:

Austin, Texas

It's no secret that Austin has been growing. As more people have been moving into the area the need for real estate grows.  This real estate market also includes Round Rock and Georgetown.

• Home price growth in 2023: -7.7%
• Share of renters who can afford to buy a median-priced home: 18.9%
• Share of returning buyers if mortgage rates fall: 5.1%
• Share of affordable listings that first-time buyers can afford to buy: 14.0%

According to the NAR, "This region boasts one of the largest pools of “returning” buyers. If interest rates drop to 6.5% in 2024, 5.1% of all households will once again have the means to afford the median-priced home. Despite ongoing housing cost challenges, a notable trend is emerging as many Millennials earning over $100,000 are relocating from other states to this market. While prices seem to be very sensitive to market changes, the influx of these high-earner Millennial renters, coupled with the presence of “returning” buyers, is anticipated to fuel growth in the local housing market. According to the Austin Board of REALTORS®, home sales activity has already shown a positive turnaround."

If you have been looking into buying a new home and possibly moving to a bigger city. The biggest cities in Texas will be the best choice in the real estate market in 2024.