Texas is experiencing remarkable growth, with the state projected to surpass California as the most populated state by 2045. In 2025, there are 30.5M residents with projections to surpass 42M residents by 2045. This population boom is driven by several factors, including a strong job market, affordable housing, and a favorable climate.
Key Reasons People Are Moving to Texas:
-
Job Growth: Texas leads the nation in job creation, especially in professional services, construction, and education sectors. Over the past decade, the state added 2.5 million jobs, outpacing states like Florida and California.
-
Affordable Housing: Nearly 50% of homes in Texas are priced under $350,000, making it a top destination for cost-conscious buyers. Median home prices in Texas average $360,000—approximately $40,000 less than the national median.
-
Booming Construction: Texas accounts for 15% of all new housing units permitted in the U.S. for 2024, helping to increase inventory and stabilize prices.
-
Out-of-State Interest: More than 1 in 4 home shoppers in Texas are from outside the state, with many relocating from California, Florida, and internationally from countries like Canada and the UK.
-
Climate & Lifestyle: Many movers cite climate and lifestyle as motivating factors. However, climate-related risks such as extreme heat and hurricanes are growing concerns for homeowners.
Challenges in the Market:
While affordability remains a key advantage, the Texas market is not without challenges:
-
Rising Prices: The median listing price in Texas has increased by nearly $80,000 since 2019.
-
Income vs. Affordability Gap: Although Texas offers more affordable housing, only 16% of homes are accessible to households earning less than $75,000.
-
Climate Risks: Nearly 90% of homes face extreme heat exposure, and almost half are at risk for hurricane-related wind damage.
What This Means for Buyers and Sellers
If you're considering buying in Texas, now may be a great time with increasing inventory and competitive pricing. Sellers can benefit from strong out-of-state demand, but staying competitive with pricing and home maintenance is key.
Ready to explore your options in Texas real estate? Create your own real estate search here.
Sources: Realtor.com 2024 Texas State of Real Estate Report, U.S. Census Bureau.
