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Living in the Lone Star State

Home Mortgage Rates in Texas

San Fernando Cathedral in San Antonio.

Texas has a vibrant property market with competitive prices. The state's large area presents many options that can please different types of buyers. The lowest prices will be found in the Southwest, along the state's border with Mexico. Although home values increase moving north, excellent values can still be found, especially when compared to median incomes.

Current Real Estate Trends

Home prices in the state of Texas have been steadily increasing since 2012, according to recent property data, which shows the median home value to be roughly $170,000 in the Lone Star State. The median list price of an occupied home on the market is $100,000 higher than the median value. Per square foot, the typical list price is around $120.

According to real estate data, home prices recently increased 6.5% over a 12-month period. Real estate experts foresee prices continuing to rise, but at a slower pace. They see property inflation at about 4.3%.

Values of existing single-family homes in Texas are below the national average, where the median home value is slightly north of $200,000. However, the median list price across the country is approximately $260,000, slightly lower than Texas. The median national per-square-foot list price is roughly $139, more than 10% higher than Texas's figure.

The National Association of Realtors estimates a 6% increase in Texas home values during the past 12 months. The real estate group calculates the median single-family home value to be $255,600, which is also very close to other market research.

According to Texas A&M's Real Estate Center, permits for the construction of new single-family homes increased 12.5% from 2016 to 2017. This increase gave the state the top spot in the country for total permits issued. On a per-capita basis, the Lone Star State was sixth, which shows a very robust new housing market.

The real estate analysis from Texas A&M University also shows months of inventory (MOI) steadily increasing in the state. MOI is the estimate in months of how long it would hypothetically take for all of an area's listings to sell if no additional properties came on the market.

MOI is a good estimate of whether a property environment is a seller's market or buyer's market. Anything below 4 is considered a seller's market, because homes tend to sell fairly quickly at that level. Above 9 is a buyer's market.

For new homes, the MOI in Texas has recently reached 3.9 months, the first time it's been that high since 2014. The MOI for existing properties has climbed to 3.6 months. Although still a seller's market, the numbers are approaching neutral territory.

Historical Real Estate Trends

Home prices in Texas experienced a gradual decline in the late 1980's, according to the Lincoln Institute of Land Policy and Real Estate Center at Texas A&M. A housing bubble burst between 1985 and 86, sending prices down. Rapid growth in crude oil prices during the early 80's had sent home values up significantly. The price of oil of course has a history of affecting the Texan economy, and this reality shows no signs of abating.

In the early 1990's, home prices began to climb back. The state's largest cities saw gradual increases in the values of single-family detached homes. This upward movement stalled when the Great Recession arrived in 2007. Nevertheless, Texas fared better than most regions in the United States during the housing crisis.

Sunset Over Downtown Dallas.

Judged by the S&P/Case-Shiller Home Price Index, one of the country's leading property indicators, the Dallas area only experienced a small decline during the mortgage debacle. Home prices took a haircut of 12%, which was much better than many other regions. By comparison, Phoenix, the largest city in Arizona, saw its home price index decline by 66%, more than four times Dallas's decline.

Not only did Texas experience limited drops in home prices during the 2007 Recession, the state's real estate market quickly recovered from them as well. The Lincoln Institute at Texas A&M estimates that Houston had only a minor decline in home values during the credit crisis, and that all four of the biggest cities in the state recovered by 2012.

Downtown Houston at Night.

From 1985 to 2012, home values actually increased 3.8% annually in Houston, 3% year-over-year in San Antonio, 2.2% in Fort Worth, and 1.8% in Dallas. This time period includes two property bubble busts. Such long-term vitality in the state's real estate market speaks favorably for both home buyers and sellers in the Lone Star State.

Texas has some of the highest property tax rates in the country, which in turn has held down real estate prices & made price shifts across the state more tame than in other states like California which have had repeated booms & busts.

Popular Metropolitan Areas

Texas Rank US Rank Metropolitan Area 2016 Pop 2010 Pop Change % △
1 4 Dallas–Fort Worth–Arlington 7,233,323 6,426,214 807,109 12.56%
1.1 -  Dallas–Plano–Irving 4,793,649 4,230,520 563,129 13.31%
1.2 -  Fort Worth–Arlington 2,439,674 2,195,694 243,980 11.11%
2 5 Houston-The Woodlands-Sugar Land 6,772,470 5,920,416 852,054 14.39%
3 24 San Antonio-New Braunfels, TX Metro Area 2,429,609 2,142,508 287,101 13.40%
4 31 Austin-Round Rock 2,056,405 1,716,289 340,116 19.82%
5 66 McAllen-Edinburg-Mission, TX Metro Area 849,843 774,769 75,074 9.69%
6 68 El Paso 841,971 804,123 37,848 4.71%
7 115 Corpus Christi 454,726 428,185 26,541 6.20%
8 123 Killeen-Temple 435,857 405,300 30,557 7.54%
9 126 Brownsville-Harlingen 422,135 406,220 15,915 3.92%
10 130 Beaumont-Port Arthur 409,968 403,190 6,778 1.68%
11 159 Lubbock 314,840 290,805 24,035 8.26%
12 175 Laredo 271,193 250,304 20,889 8.35%
13 181 Waco 265,207 252,772 12,435 4.92%
14 184 Amarillo 263,342 251,933 11,409 4.53%
15 187 College Station-Bryan 254,928 228,660 26,268 11.49%
16 199 Tyler 225,290 209,714 15,576 7.43%
17 201 Longview 217,446 214,369 3,077 1.44%
18 246 Abilene 170,364 165,252 5,112 3.09%
19 252 Midland 168,288 141,671 26,617 18.79%
20 264 Odessa 157,462 137,130 20,332 14.83%
21 276 Wichita Falls 150,734 151,306 -572 -0.38%
22 277 Texarkana 150,098 149,198 900 0.60%
23 318 Sherman-Denison 128,235 120,877 7,358 6.09%
24 322 San Angelo 119,943 111,823 8,120 7.26%
25 326 Victoria 99,984 94,003 5,981 6.36%

Because Texas is a large state both in terms of population and geography, there is a lot of variation from area to area in terms of price and availability. The largest populated region is the Dallas-Fort Worth area, which residents call The Metroplex. The most recent figures from the U.S. Census Bureau estimate the number of people living there at more than 7 million.

The Metroplex has a very strong and robust economy, boasting headquarters for many companies, including both American Airlines and Southwest. Other businesses with facilities in the area include Microsoft, Nokia, Google, Raytheon, Lockheed Martin, and Texas Instruments. Of course, there is an important oil and gas industry in the region. ExxonMobil has its headquarters in Irving, one of the cities in the Metroplex. The U.S. Census Bureau estimates the median income in the area to be roughly $62,000.

The median home price in the Dallas-Fort Worth area saw an increase of 12.6% from 2016 to 2017, according to the National Association of Realtors. The property group calculates the selling price of the median home in the metro area to be $237,000. This puts the Metroplex above the national average. Residential Strategies, a housing analyst in Dallas, calculates that median home prices in the area have risen by nearly $100,000 in six years. That's an annual price increase of almost $17,000.

San Antonio has seen smaller increases in property values, but prices are definitely increasing. The latest market research estimates the annual increase at 8.2%. The property company forecasts a slower annual increase of 5.5% in the future.

Real estate experts view the San Antonio real estate environment as a buyer's market. They grade the city's property market as €œvery healthy,€ giving San Antonio a 9.1 out of 10. Property trackers look at various real estate characteristics, such as foreclosure rates, negative equity, delinquencies, and how quickly homes are selling compared to previous figures.

The median home value in the San Antonio metro area is slightly higher than $165,000. The current median list price hovers around $275,000, more than $100,000 higher than estimated values. Per square foot, the list price averages out to $119. With a median income in San Antonio of $47,000, the home value-to-income ratio in the city is roughly 3.5, not spectacular but not bad either.

San Antonio's economy is driven by tourism, oil and gas operations, and military installations. Tourism alone employees nearly 100,000 people and produces billions of dollars in revenue. Valero Energy, Tesoro Corporation, and iHeartMedia are all headquartered in the city.

Lower home prices can be found in Lubbock, located two hours south of Amarillo in the Texas panhandle. The metro area has a population of roughly 300,000. The largest employers in Lubbock are Texas Tech University, AT&T, and Covenant Health System.

The most recent figures at the U.S. Census Bureau show a median home value in Lubbock of $114,000. According to recent property data, the median home value in the city is a slightly higher $122,000. This figure represents an increase of 3.8% from previous data. The typical list price, however, is a much steeper $210,000. This produces a per-square-figure of roughly $98.

With a median household income of $45,000, the city has a home value-to-income rate of 2.7, which is much better than San Antonio's figure and many other cities in the United States for that matter.

The state capital of Austin is home to the University of Texas with a strong footprint in the digital media, green energy and biotech fields. It is a popular destinaton for artists and technologists alike, hosting popular events like SXSW & the Austin City Limits Festival.

Austin.

The city of Conroe, 40 miles north of Houston, has been the fastest growing area in Texas. However, Conroe's northern location did not spare it from significant damage after Hurricane Harvey swept through the region. Some homes in Conroe had up to 20 inches of flood water inside. There is no reliable way to estimate home values at this time, and it will take many years for the property market in the Houston area to recover.

Texas Census Data

According to the United States Census an estimated 27,862,596 people live in the state of Texas. Here is a list of cities, towns & Census Designated Places (CDP) with more than 10,000 residents, with their estimated population as of July 1, 2016 based on United States Census Bureau estimates. For The Woodlands developer data from January 1, 2016 was used. For other Census Designated Places (CDP) where there was no population estimate available for 2016, the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography County 2016 Pop 2010 Pop Change % △ Land mi² Pop Den mi²
1 Houston Harris, Fort Bend & Montgomery 2,303,482 2,099,451 204,031 9.72% 599.59 3,841.76
2 San Antonio Bexar, Medina & Comal 1,492,510 1,327,407 165,103 12.44% 460.93 3,238.04
3 Dallas Dallas, Collin, Denton, Rockwall & Kaufman 1,317,929 1,197,816 120,113 10.03% 340.52 3,870.34
4 Austin Travis, Williamson & Hays 947,890 790,390 157,500 19.93% 297.9 3,181.91
5 Fort Worth Tarrant, Denton, Parker & Wise 854,113 741,206 112,907 15.23% 339.82 2,513.43
6 El Paso El Paso 683,080 649,121 33,959 5.23% 255.24 2,676.23
7 Arlington Tarrant 392,772 365,438 27,334 7.48% 95.88 4,096.50
8 Corpus Christi Nueces, Kleberg & Aransas 325,733 305,215 20,518 6.72% 160.61 2,028.10
9 Plano Collin & Denton 286,057 259,841 26,216 10.09% 71.58 3,996.33
10 Laredo Webb 257,156 236,091 21,065 8.92% 88.91 2,892.32
11 Lubbock Lubbock 252,506 229,573 22,933 9.99% 122.41 2,062.79
12 Irving Dallas 238,289 216,290 21,999 10.17% 67.02 3,555.49
13 Garland Dallas, Collin & Rockwall 234,943 226,876 8,067 3.56% 57.08 4,116.03
14 Amarillo Potter & Randall 199,582 190,695 8,887 4.66% 99.48 2,006.25
15 Grand Prairie Dallas, Tarrant & Ellis 190,682 175,396 15,286 8.72% 72.1 2,644.69
16 Brownsville Cameron 183,823 175,023 8,800 5.03% 132.33 1,389.13
17 McKinney Collin 172,298 131,117 41,181 31.41% 62.21 2,769.62
18 Frisco Collin & Denton 163,656 116,989 46,667 39.89% 61.8 2,648.16
19 Pasadena Harris 153,351 149,043 4,308 2.89% 42.76 3,586.32
20 Mesquite Dallas & Kaufman 143,736 139,824 3,912 2.80% 46.02 3,123.34
21 Killeen Bell 143,400 127,921 15,479 12.10% 53.58 2,676.37
22 McAllen Hidalgo 142,212 129,877 12,335 9.50% 48.34 2,941.91
23 Midland Midland & Martin 134,610 111,147 23,463 21.11% 72.07 1,867.77
24 Waco McLennan 134,432 124,805 9,627 7.71% 88.96 1,511.15
25 Denton Denton 133,808 113,383 20,425 18.01% 87.95 1,521.41
26 Carrollton Denton, Dallas & Collin 133,351 119,097 14,254 11.97% 36.3 3,673.58
27 Abilene Taylor & Jones 122,225 117,063 5,162 4.41% 106.79 1,144.54
28 Round Rock Williamson & Travis 120,892 99,887 21,005 21.03% 34.11 3,544.18
29 Beaumont Jefferson 118,299 118,296 3 0.00% 82.8 1,428.73
30 Odessa Ector & Midland 117,871 99,940 17,931 17.94% 41.95 2,809.80
31 Pearland Brazoria, Harris & Fort Bend 113,570 91,252 22,318 24.46% 47.02 2,415.36
32 Richardson Dallas & Collin 113,347 99,223 14,124 14.23% 28.56 3,968.73
The Woodlands CDP The Woodlands CDP 112,505 93,847 18,658 19.88% 43.27 2,600.07
33 College Station Brazos 112,141 93,857 18,284 19.48% 49.44 2,268.22
34 Tyler Smith 104,798 96,900 7,898 8.15% 53.86 1,945.75
35 Wichita Falls Wichita 104,724 104,553 171 0.16% 72.14 1,451.68
36 Lewisville Denton & Dallas 104,659 95,290 9,369 9.83% 36.4 2,875.25
37 League City Galveston & Harris 102,010 83,560 18,450 22.08% 51.29 1,988.89
38 San Angelo Tom Green 100,702 93,200 7,502 8.05% 56.86 1,771.05
39 Allen Collin 99,179 84,246 14,933 17.73% 26.29 3,772.50
40 Sugar Land Fort Bend 88,177 78,817 9,360 11.88% 32.38 2,723.19
41 Edinburg Hidalgo 87,650 77,100 10,550 13.68% 37.63 2,329.26
42 Mission Hidalgo 83,563 77,058 6,505 8.44% 33.99 2,458.46
43 Bryan Brazos 83,260 76,201 7,059 9.26% 44.41 1,874.80
44 Conroe Montgomery 82,286 56,207 26,079 46.40% 52.71 1,561.11
45 Longview Gregg & Harrison 82,055 80,455 1,600 1.99% 55.69 1,473.42
46 Pharr Hidalgo 77,320 70,400 6,920 9.83% 23.42 3,301.45
47 Baytown Harris & Chambers 75,992 71,802 4,190 5.84% 35.44 2,144.24
48 Missouri City Fort Bend & Harris 74,561 67,358 7,203 10.69% 28.42 2,623.54
49 New Braunfels Comal & Guadalupe 73,959 57,740 16,219 28.09% 43.87 1,685.87
50 Temple Bell 73,600 66,102 7,498 11.34% 69.01 1,066.51
51 Flower Mound Denton & Tarrant 73,547 64,669 8,878 13.73% 41.39 1,776.93
Atascocita CDP Harris 70,773 65,844 4,929 7.49% 25.23 2,805.11
52 North Richland Hills Tarrant 69,798 63,343 6,455 10.19% 18.17 3,841.39
53 Cedar Park Williamson & Travis 68,918 48,937 19,981 40.83% 22.85 3,016.11
54 Victoria Victoria 67,670 62,592 5,078 8.11% 35.48 1,907.27
55 Georgetown Williamson 67,140 47,400 19,740 41.65% 47.86 1,402.84
56 Mansfield Tarrant, Johnson & Ellis 65,631 56,368 9,263 16.43% 36.38 1,804.04
57 Harlingen Cameron 65,539 64,849 690 1.06% 39.81 1,646.29
58 Rowlett Dallas & Rockwall 61,999 56,199 5,800 10.32% 19.89 3,117.09
59 San Marcos Hays, Caldwell & Guadalupe 61,980 44,894 17,086 38.06% 30.22 2,050.96
60 Pflugerville Travis & Williamson 59,245 46,936 12,309 26.23% 22.32 2,654.35
Spring CDP Harris 56,369 54,298 2,071 3.81% 23.19 2,430.75
61 Port Arthur Jefferson & Orange 55,427 53,818 1,609 2.99% 76.9 720.77
62 Euless Tarrant 54,769 51,277 3,492 6.81% 16.21 3,378.72
63 DeSoto Dallas 52,599 49,047 3,552 7.24% 21.62 2,432.89
64 Grapevine Tarrant, Dallas & Denton 51,971 46,334 5,637 12.17% 31.93 1,627.65
65 Galveston Galveston 50,550 47,743 2,807 5.88% 41.22 1,226.35
66 Bedford Tarrant 49,528 46,979 2,549 5.43% 10.01 4,947.85
67 Cedar Hill Dallas & Ellis 48,343 45,028 3,315 7.36% 35.82 1,349.61
68 Texas City Galveston & Chambers 48,262 45,099 3,163 7.01% 63.8 756.46
69 Wylie Collin, Rockwall & Dallas 47,701 41,427 6,274 15.14% 21.04 2,267.16
70 Keller Tarrant 46,646 39,627 7,019 17.71% 18.45 2,528.24
71 Burleson Johnson & Tarrant 45,016 36,690 8,326 22.69% 26.01 1,730.72
72 Haltom City Tarrant 44,361 42,409 1,952 4.60% 12.34 3,594.89
73 Rockwall Rockwall 43,586 37,490 6,096 16.26% 27.68 1,574.64
74 Leander Williamson & Travis 42,761 26,521 16,240 61.23% 22.85 1,871.38
75 Little Elm Denton 42,504 25,898 16,606 64.12% 14.57 2,917.23
76 The Colony Denton 42,408 36,328 6,080 16.74% 14.02 3,024.82
77 Sherman Grayson 41,567 38,521 3,046 7.91% 41.39 1,004.28
78 Coppell Dallas & Denton 41,360 38,659 2,701 6.99% 14.39 2,874.22
79 Huntsville Walker 41,208 38,548 2,660 6.90% 35.86 1,149.14
80 Weslaco Hidalgo 40,033 35,670 4,363 12.23% 14.72 2,719.63
81 Duncanville Dallas 39,457 38,524 933 2.42% 11.23 3,513.54
82 Schertz Guadalupe, Bexar & Comal 39,453 31,465 7,988 25.39% 28.41 1,388.70
83 Friendswood Galveston & Harris 39,396 35,805 3,591 10.03% 20.74 1,899.52
Channelview CDP Harris 39,379 38,289 1,090 2.85% 14.79 2,662.54
84 Hurst Tarrant 39,160 37,337 1,823 4.88% 9.91 3,951.56
85 Kyle Hays 39,060 28,016 11,044 39.42% 19.09 2,046.10
86 Lancaster Dallas 38,867 36,361 2,506 6.89% 30.28 1,283.59
87 Texarkana Bowie 37,679 36,411 1,268 3.48% 29.04 1,297.49
88 Rosenberg Fort Bend 36,937 30,618 6,319 20.64% 22.48 1,643.10
Mission Bend CDP Mission Bend CDP 36,723 36,501 222 0.61% 4.88 7,525.20
89 San Juan Hidalgo 36,663 33,856 2,807 8.29% 11.45 3,202.01
90 Lufkin Angelina 36,159 35,067 1,092 3.11% 33.38 1,083.25
91 Del Rio Val Verde 35,998 35,591 407 1.14% 20.15 1,786.50
92 La Porte Harris 35,086 33,800 1,286 3.80% 18.63 1,883.31
93 Farmers Branch Dallas 34,988 28,616 6,372 22.27% 11.79 2,967.60
94 Waxahachie Ellis 34,345 29,621 4,724 15.95% 47.65 720.78
95 Nacogdoches Nacogdoches 33,932 32,996 936 2.84% 27.05 1,254.42
96 Deer Park Harris 33,782 32,010 1,772 5.54% 10.46 3,229.64
97 Socorro El Paso 33,277 32,013 1,264 3.95% 22.03 1,510.53
98 Copperas Cove Coryell & Bell 32,808 32,032 776 2.42% 18.03 1,819.63
99 Southlake Tarrant & Denton 30,991 26,575 4,416 16.62% 21.88 1,416.41
Fort Hood CDP Fort Hood CDP 30,739 29,589 1,150 3.89% 15.51 1,981.88
100 Cleburne Johnson 30,223 29,337 886 3.02% 29.58 1,021.74
101 Weatherford Parker 29,969 25,250 4,719 18.69% 24.86 1,205.51
102 Harker Heights Bell 29,757 26,700 3,057 11.45% 15.18 1,960.28
103 Eagle Pass Maverick 28,834 26,248 2,586 9.85% 9.58 3,009.81
104 Seguin Guadalupe 28,614 25,175 3,439 13.66% 34.46 830.35
105 Big Spring Howard 28,532 27,282 1,250 4.58% 19.1 1,493.82
106 Cibolo Guadalupe & Bexar 27,855 15,349 12,506 81.48% 6.57 4,239.73
107 Lake Jackson Brazoria 27,529 26,849 680 2.53% 19.44 1,416.10
108 Greenville Hunt 27,172 25,557 1,615 6.32% 32.63 832.73
Timberwood Park CDP Bexar 26,219 13,447 12,772 94.98% 12.69 2,066.12
109 Alvin Brazoria 26,164 24,236 1,928 7.96% 24.29 1,077.15
110 Colleyville Tarrant 26,152 22,807 3,345 14.67% 13.1 1,996.34
111 Kingsville Kleberg 26,071 26,213 -142 -0.54% 13.83 1,885.10
112 Sachse Dallas & Collin 25,039 20,329 4,710 23.17% 9.79 2,557.61
113 Balch Springs Dallas 25,017 23,728 1,289 5.43% 8.96 2,792.08
114 Paris Lamar 25,005 25,171 -166 -0.66% 36.5 685.07
115 University Park Dallas 24,905 23,068 1,837 7.96% 3.69 6,749.32
116 Watauga Tarrant 24,629 23,497 1,132 4.82% 4.16 5,920.43
117 San Benito Cameron 24,476 24,250 226 0.93% 15.79 1,550.09
118 Corsicana Navarro 23,987 23,770 217 0.91% 22.67 1,058.09
119 Hutto Williamson 23,832 14,698 9,134 62.14% 7.75 3,075.10
West Odessa CDP Ector 23,742 22,707 1,035 4.56% 62.66 378.90
120 Midlothian Ellis 23,689 18,037 5,652 31.34% 49.75 476.16
121 Denison Grayson 23,654 22,682 972 4.29% 23 1,028.43
122 Marshall Harrison 23,561 23,523 38 0.16% 29.59 796.25
123 Kerrville Kerr 23,434 22,347 1,087 4.86% 20.3 1,154.38
Cloverleaf CDP Harris 23,285 22,942 343 1.50% 3.32 7,013.55
124 Benbrook Tarrant 22,948 21,234 1,714 8.07% 11.51 1,993.74
Canyon Lake CDP Comal 22,759 21,262 1,497 7.04% 143.33 158.79
125 Converse Bexar 22,702 18,198 4,504 24.75% 6.98 3,252.44
126 Saginaw Tarrant 22,526 19,806 2,720 13.73% 7.56 2,979.63
Fresno CDP Fort Bend 21,877 19,069 2,808 14.73% 9.18 2,383.12
Brushy Creek CDP Williamson 21,254 21,764 -510 -2.34% 6.96 3,053.74
127 Corinth Denton 21,078 19,935 1,143 5.73% 7.8 2,702.31
128 Belton Bell 20,873 18,216 2,657 14.59% 18.93 1,102.64
129 Plainview Hale 20,859 22,194 -1,335 -6.02% 13.8 1,511.52
130 Stephenville Erath 20,607 17,123 3,484 20.35% 11.89 1,733.14
131 Murphy Collin 20,482 17,708 2,774 15.67% 5.65 3,625.13
132 Universal City Bexar 20,359 18,530 1,829 9.87% 5.58 3,648.57
133 Dickinson Galveston 20,074 18,680 1,394 7.46% 9.87 2,033.84
134 Angleton Brazoria 19,491 18,862 629 3.33% 11.27 1,729.46
135 Orange Orange 19,418 18,595 823 4.43% 21.31 911.22
136 Alice Jim Wells 19,285 19,104 181 0.95% 11.99 1,608.42
137 Horizon City El Paso 19,266 16,735 2,531 15.12% 8.71 2,211.94
138 Ennis Ellis 19,221 18,513 708 3.82% 27.65 695.15
139 Alamo Hidalgo 19,220 18,353 867 4.72% 7.1 2,707.04
140 Brownwood Brown 19,153 19,288 -135 -0.70% 14.83 1,291.50
141 Forney Kaufman 19,122 14,661 4,461 30.43% 13.14 1,455.25
142 Bellaire Harris 18,593 16,855 1,738 10.31% 3.59 5,179.11
143 Stafford Fort Bend & Harris 18,422 17,693 729 4.12% 6.99 2,635.48
144 Palestine Anderson 18,383 18,712 -329 -1.76% 19.39 948.07
145 Prosper Collin & Denton 18,379 9,423 8,956 95.04% 22.58 813.95
146 Bay City Matagorda 17,809 17,614 195 1.11% 8.87 2,007.78
147 Pampa Gray 17,762 17,994 -232 -1.29% 8.96 1,982.37
148 South Houston Harris 17,463 16,983 480 2.83% 3.05 5,725.57
149 Terrell Kaufman 17,329 15,816 1,513 9.57% 19.63 882.78
150 Nederland Jefferson 17,294 17,547 -253 -1.44% 5.71 3,028.72
151 White Settlement Tarrant 17,204 16,116 1,088 6.75% 5.05 3,406.73
152 Katy Harris, Fort Bend & Waller 17,116 14,102 3,014 21.37% 11.25 1,521.42
Cinco Ranch CDP Cinco Ranch CDP 17,015 18,274 -1,259 -6.89% 4.87 3,493.84
153 Brenham Washington 16,989 15,716 1,273 8.10% 11.86 1,432.46
154 Alton Hidalgo 16,895 12,341 4,554 36.90% 5.88 2,873.30
155 Taylor Williamson 16,857 15,191 1,666 10.97% 17.2 980.06
157 Mercedes Hidalgo 16,624 15,570 1,054 6.77% 11.43 1,454.42
156 Highland Village Denton 16,624 15,056 1,568 10.41% 5.5 3,022.55
158 Portland San Patricio & Nueces 16,618 15,099 1,519 10.06% 7.01 2,370.61
159 Uvalde Uvalde 16,540 15,751 789 5.01% 7.65 2,162.09
160 Donna Hidalgo 16,518 15,798 720 4.56% 8.29 1,992.52
161 La Marque Galveston 16,457 14,509 1,948 13.43% 13.91 1,183.11
Pecan Grove CDP Fort Bend 16,399 15,963 436 2.73% 8.7 1,884.94
162 Gainesville Cooke 16,320 16,002 318 1.99% 19.01 858.50
163 Mount Pleasant Titus 16,273 15,564 709 4.56% 14.86 1,095.09
164 Sulphur Springs Hopkins 16,162 15,449 713 4.62% 20.22 799.31
Jollyville CDP Jollyville CDP 16,151 16,151 0 0.00% 2.75 5,873.09
165 Seagoville Dallas & Kaufman 16,093 14,835 1,258 8.48% 18.68 861.51
166 Groves Jefferson 15,758 16,144 -386 -2.39% 5.17 3,047.97
167 Live Oak Bexar 15,749 13,131 2,618 19.94% 4.75 3,315.58
Sienna Plantation CDP Fort Bend 15,720 13,721 1,999 14.57% 13.61 1,155.03
168 Humble Harris 15,561 15,133 428 2.83% 9.78 1,591.10
169 West University Place Harris 15,516 14,787 729 4.93% 2 7,758.00
New Territory CDP Fort Bend 15,494 15,186 308 2.03% 4.64 3,339.22
170 Addison Dallas 15,368 13,056 2,312 17.71% 4.38 3,508.68
Aldine CDP Harris 15,310 15,869 -559 -3.52% 7.9 1,937.97
171 Canyon Randall 15,138 13,303 1,835 13.79% 6.87 2,203.49
172 Buda Hays 15,023 7,295 7,728 105.94% 5.36 2,802.80
173 Crowley Tarrant & Johnson 14,969 12,838 2,131 16.60% 7.25 2,064.69
174 Dumas Moore 14,916 14,691 225 1.53% 5.52 2,702.17
175 Hereford Deaf Smith 14,915 15,370 -455 -2.96% 5.93 2,515.18
176 Jacksonville Cherokee 14,898 14,544 354 2.43% 14.24 1,046.21
177 Kilgore Gregg & Rusk 14,836 12,975 1,861 14.34% 15.68 946.17
178 Mineral Wells Palo Pinto & Parker 14,826 16,788 -1,962 -11.69% 20.4 726.76
179 Boerne Kendall 14,725 10,471 4,254 40.63% 9.62 1,530.67
180 Lakeway Travis 14,641 11,391 3,250 28.53% 10.17 1,439.63
181 Rio Grande City Starr 14,483 13,834 649 4.69% 11.35 1,276.04
182 Hewitt McLennan 14,322 13,549 773 5.71% 6.82 2,100.00
Rendon CDP Tarrant 14,114 12,552 1,562 12.44% 24.64 572.81
183 Levelland Hockley 13,844 13,542 302 2.23% 10.16 1,362.60
184 Hidalgo Hidalgo 13,831 11,198 2,633 23.51% 6.54 2,114.83
185 Seabrook Harris, Galveston & Chambers 13,656 11,952 1,704 14.26% 5.32 2,566.92
Four Corners CDP Fort Bend 13,626 12,382 1,244 10.05% 2.54 5,364.57
San Elizario CDP El Paso 13,603 13,603 0 0.00% 10.27 1,324.54
186 Andrews Andrews 13,574 11,088 2,486 22.42% 4.9 2,770.20
187 Lockhart Caldwell 13,527 12,698 829 6.53% 15.57 868.79
188 Henderson Rusk 13,416 13,712 -296 -2.16% 11.95 1,122.68
La Homa CDP Hidalgo 13,406 11,985 1,421 11.86% 6.88 1,948.55
189 Beeville Bee 13,250 12,863 387 3.01% 6.18 2,144.01
190 Santa Fe Galveston 13,205 12,222 983 8.04% 17.14 770.42
191 Forest Hill Tarrant 12,947 12,355 592 4.79% 4.25 3,046.35
192 Borger Hutchinson 12,865 13,251 -386 -2.91% 8.77 1,466.93
193 Athens Henderson 12,811 12,710 101 0.79% 16.83 761.20
194 Port Neches Jefferson 12,809 13,040 -231 -1.77% 8.63 1,484.24
195 Lumberton Hardin 12,594 11,943 651 5.45% 13.29 947.63
196 Red Oak Ellis 12,522 10,769 1,753 16.28% 14.97 836.47
197 Gatesville Coryell 12,498 15,751 -3,253 -20.65% 8.9 1,404.27
198 Port Lavaca Calhoun 12,400 12,248 152 1.24% 10.15 1,221.67
199 Glenn Heights Dallas & Ellis 12,336 11,278 1,058 9.38% 7.22 1,708.59
Greatwood CDP Fort Bend 12,198 11,538 660 5.72% 2.69 4,534.57
200 Trophy Club Denton & Tarrant 12,166 8,024 4,142 51.62% 3.95 3,080.00
201 Freeport Brazoria 12,153 12,049 104 0.86% 14.95 812.91
202 Royse City Rockwall, Collin & Hunt 12,093 9,349 2,744 29.35% 15.01 805.66
203 Richmond Fort Bend 12,092 11,679 413 3.54% 3.93 3,076.84
204 Azle Tarrant & Parker 12,064 10,947 1,117 10.20% 8.82 1,367.80
Wells Branch CDP Travis 12,014 12,120 -106 -0.87% 2.53 4,748.62
205 Anna Collin 11,940 8,249 3,691 44.74% 14.05 849.82
206 El Campo Wharton 11,766 11,602 164 1.41% 8.29 1,419.30
207 Tomball Harris & Montgomery 11,643 10,753 890 8.28% 11.77 989.21
208 Clute Brazoria 11,586 11,211 375 3.34% 5.36 2,161.57
209 Snyder Scurry 11,572 11,202 370 3.30% 8.6 1,345.58
210 Robstown Nueces 11,517 11,487 30 0.26% 15.5 743.03
211 Robinson McLennan 11,493 10,509 984 9.36% 31.24 367.89
212 Fredericksburg Gillespie 11,382 10,530 852 8.09% 8.58 1,326.57
213 Leon Valley Bexar 11,314 10,151 1,163 11.46% 3.43 3,298.54
214 Raymondville Willacy 11,173 11,284 -111 -0.98% 4.11 2,718.49
215 Burkburnett Wichita 11,095 10,811 284 2.63% 11.33 979.26
216 Webster Harris 11,075 10,400 675 6.49% 6.34 1,746.85
217 Galena Park Harris 11,067 10,887 180 1.65% 4.86 2,277.16
218 Vidor Orange 10,958 10,579 379 3.58% 11.72 934.98
219 Sweetwater Nolan 10,755 10,906 -151 -1.38% 10.04 1,071.22
220 Fate Rockwall 10,703 6,357 4,346 68.37% 5.81 1,842.17
221 Jacinto City Harris 10,696 10,553 143 1.36% 1.87 5,719.79
222 Rockport Aransas 10,645 8,766 1,879 21.44% 10.68 996.72
223 Ingleside San Patricio & Nueces 10,488 9,387 1,101 11.73% 16.29 643.83
224 Vernon Wilbarger 10,461 11,002 -541 -4.92% 7.9 1,324.18
225 Pleasanton Atascosa 10,393 8,934 1,459 16.33% 7.83 1,327.33
226 Bellmead McLennan 10,306 9,901 405 4.09% 6.83 1,508.93
227 Roma Starr 10,265 9,765 500 5.12% 4.07 2,522.11
228 Bonham Fannin 10,123 10,127 -4 -0.04% 9.78 1,035.07
230 Selma Bexar, Comal & Guadalupe 10,088 5,540 4,548 82.09% 5.05 1,997.62
231 Pearsall Frio 10,064 9,146 918 10.04% 5.93 1,697.13

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.

Qualifying for a Home Loan in Texas

There are a variety of mortgage types available to homebuyers in the in the Lone Star State. For example, there are fixed-rate loans, typically of 15 or 30 years of duration. Also available are adjustable-rate loans. The federal government offers its own selection of financing options through the Veterans Administration (VA) and the Federal Housing Administration (FHA).

Conforming Mortgages

The most common mortgage that Texans use is the 30-year fixed-rate loan. The interest rate does not change during the lifetime of the mortgage, which is why it's called €˜fixed.' The length of this mortgage is attractive to borrowers, because it produces a low monthly payment. However, interest rates are higher compared to 15-year loans. Using the shorter mortgage can save many thousands of dollars in interest alone during the course of the mortgage.

Adjustable-rate mortgages, also called ARM loans, have interest rates that can increase during the course of the loan. While the initial ARM rate can in some cases be lower than 30-year fixed-rate APR's, there is an advantage to having a guarantee that your interest rate won't spike while you're living in your house. ARM loans make sense for people who are flipping houses, know they won't live in a house for an extended period of time, or want to take advantage of the home interest tax write off while investing their capital elsewhere where they have higher returns.

Most private banks give their best rates to borrowers with credit scores above 740, but loans with higher interest rates can be obtained with lower scores. They also prefer debt-to income ratios to be no greater than 40% & a minimum 20% down payment, but other factors are considered on the loan application.

The piggyback loan is another type of mortgage available to Texas residents. This is simply two mortgages in one. The piggyback loan can eliminate the need for private mortgage insurance by covering 80% of the home's value with the first loan, while the second loan helps to pay for part of the down payment. This mortgage is a good way to avoid the standard 20% down payment, which is required by most private banks issuing loans.

Governmental Finance Programs Programs

Veterans of the U.S. armed forces can get a home loan through the VA with no down payment, a luxury not to be found anywhere else. The mortgage is underwritten by a private mortgage company, and the VA insures the loan.

The FHA offers home loans to borrowers with a credit score of at least 580 with a 3.5% down payment. A credit score of 579 or lower might still qualify for an FHA loan, but the governmental agency will require at least 10% down. If any FHA loan has a down payment less than 20%, insurance premiums are required.

USDA loans can help people with low incomes in rural parts of the state qualify for a subsidized low-interest loan.

Housing assistance is available to low-income families, the elderly, and persons with disabilities. The Texas Department of Housing and Community Affairs operates the Housing Choice Voucher Program. Many Public Housing Agencies are located throughout the Lone Star State. They have Internet sites, phone numbers, and weekday hours at many locations.

Texas is a community property state. This means that any property (such as a home) that is purchased during marriage is legally considered the property of the couple. Under this legal system, the credit report of a non-borrowing spouse will be considered by the Veteran's Administration and the Federal Housing Administration when one spouse applies for a mortgage. Applying for a loan through Freddie Mac or Fannie Mae will circumvent some of these policies, however.

Laws Particular to the Lone Star State

Property Taxes

Texas does not charge income tax, but they offset the lack of income tax by charging relatively high property taxes. The higher property tax rates help hold down real estate prices during booms which in turn makes Texas real estate less cyclical than states like California. The average tax rate across the state is 2.06%, costing homeowners around $,660 per year. In Austin average property taxes cost an average of $7,012 per year.

Texas Homestead Law

Texas has the Homestead Law, which protects a home from creditors should the homeowner spouse die. This law prevents a forced sale of the property, protects the surviving spouse, and creates an exemption from property taxes.

Foreclosures

According to Texas law, home equity loans are non-recourse, while first and second mortgages are recourse. Under non-recourse guidelines, a mortgage company can only pursue the collateral of a loan in the case of a default. Typically in a mortgage, this is the house. A recourse loan, on the other hand, allows the lender to pursue other assets besides collateral if the borrower defaults.

A foreclosure in Texas is usually conducted outside of the judicial system. Hence, it is called a non-judicial foreclosure. Under this type of procedure, the lender notifies the trustee that the borrower has defaulted on the mortgage. The trustee then sells the home at auction, which is publicized in newspapers, to pay off the mortgage. The whole process generally takes less than two months.

Earthquakes

The eastmost edge of Texas has a moderate earthquake risk. Standard rental and homeowner insurance policies typically do not cover earthquake damage, though they usually cover losses caused by fires which resulted from an earthquake. You can supplement your homeowner's insurance with an earthquake policy.

Flood Insurance

Homeowner's insurance policies typically do not cover flooding.

Most counties across the state have a very low risk of flooding. The following counties have relatively elevated risks of flooding or hurricane storm surge damages.

  • Low Risk of Flooding: Anderson, Bell, Bexar, Brazos, Cass, Coke,El Paso, Erath, Fort Bend, Grayson, Gregg, Hunt, Johnson, Kaufman, Limestone, Live Oak, Matagora, Mclennan, Randall, Rockwall, San Patricio, Tarrant, Tom Green, Uvalde, Washington, Wood
  • Moderate Risk of Flooding: Angelina, Austin, Baston, Bee, Bosque, Bowie, Burleson, Burnet, Caldwell, Camp, Camp, Chambers, Chaves, Cherokee, Cherokee, Comal, Cooke, Curry, Dickens, Duval, Ellis, Fannin, Fayette, Grimes, Hardin, Harrison, Hays, Henderson, Hill, Hood, Hopkins, Houston, Kendall, Kerr, Kleberg, Lamar, Lavaca, Leon, Lubbock, Madison, Maverick, Montague, Montgomery, Nacogdoches, Navarro, Palo Pinto, Parker, Polk, Refugio, Runnels, San Saba, Travis, Trinity, Tyler, Val Verde, Van Zandt, Walker, Waller, Ward, Webb, Wichita, Wilson, Wise, Young, Zapata
  • High Risk of Flooding: Atascosa, Colorado,Ector, Eddy, Galveston, Gonzales, Guadalupe, Harris, Jasper, Jim Hogg, Jones, Karnes, Lea, Liberty, Llano, Medina, Robertson, San Jacinto
  • Very High Risk of Flooding: Aransas, Bandera, Brooks, Calhoun, De Witt, Jackson, Otero, Taylor
  • Moderate Risk of Hurricane Storm Surge: Chambers, Jackson, Matagorda
  • High Risk of Hurricane Storm Surge: Aransas, Calhoun
  • Very High Risk of Hurricane Storm Surge: Galveston

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Typically, homes built after 2002, when building code regulations tightened, are subject to lower insurance rates than older homes. On the other hand, homes without hurricane straps, with roofs that do not meet current standards for wind, with older plumbing or with outdated electrical systems may be difficult €“ or very expensive €“ to insure.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common. The Houston area will take many years to recover from Hurricane Harvey.

Wildfires

The risk of wildfires is considered moderate near the area bordering Louisiana. Fire damages from wildfires & other types of fires are typically covered in most homeowner's insurance policies. If you own expensive items you may want to keep an up-to-date household inventory list which lists specific valuables, such as fine art & jewelry.

Tornadoes

The northern portion of the state is considered to have a moderate tornado risk. A basic homeowners policy should cover financial damages from tornadoes.

Hail

Hail damage is common across the northern half of the state. Damage from hail is typically covered by home insurance policies.

Learn More

Many opportunities abound in Texas for property buyers. The most expensive areas of the state offer acceptable prices compared to local incomes. The Lone Star State's remarkable resiliency during the 2007 housing crisis bodes well for the future of real estate there.

For more information about Texas's property market, check out the following real estate sites: