Changes to the Texas Real Estate Market in 2023

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Untitled-design-14-300x214While record inflation may be having a negative impact on home sales nationwide, Texas stands out as a sort of exception to the rule. Multiple housing markets in Texas continued to see increases even while many other parts of the country were suffering.  If you are considering entering the real estate market in Texas, you will want to work with a Texas real estate attorney.

Several statistics and figures outline the continuing growth that Texas is experiencing. Many investors are, in turn, looking to Texas for their next commercial real estate investment project because there is so much potential.

Commercial Real Estate Facts in Texas

The Federal Reserve Bank of Dallas released a 2022 Texas Commercial Real Estate Update containing several interesting facts and figures.

Industrial leasing in major Texas cities included 70.0 million square feet in Dallas-Fort Worth, 43.3 million square feet in Houston, 11.9 million square feet in Austin, and 7.6 million square feet in San Antonio.  Dallas-Fort Worth also led the nation in terms of space under construction for the industrial real estate market with 61.2 million square feet, although other Texas cities on the list included Houston with 17.1 million square feet, Austin with 11.9 million square feet, and San Antonio with 10.2 million square feet. The annual industrial transaction volume in Texas reached $18 billion, the highest figure of the past 15 years.

In the retail real estate market, Texas has a 5.4 percent rent growth rate, which is greater than the 4.3 percent growth rate nationally and a vacancy rate of 5.6 percent which is more than the 4.3 percent national rate.

Texas had four of the top six spots when it came to population growth, with Austin ranking first overall with just short of 35 percent, and San Antonio, Dallas-Fort Worth, and Houston being fourth, fifth, and sixth, with all of them having more than 20 percent.

Rising Real Estate Prices in Texas

According to Forbes, 10 Texas housing markets saw the largest growth in home prices over the past year. These cities included:

  1. Waco — Median sale price increasing from $155,000 to $247,000, or 59.4 percent home price growth
  2. Allen — Median sale price increasing from $456,000 to $672,475, or 47.5 percent home price growth
  3. College Station — Median sale price increasing from $252,175 to $347,501, or 37.8 percent home price growth
  4. Longview — Median sale price increasing from $188,000 to $257,500, or 37.0 percent home price growth
  5. Temple — Median sale price increasing from $240,000 to $328,101, or 36.7 percent home price growth
  6. McKinney — Median sale price increasing from $425,000 to $577,700, or 35.9 percent home price growth
  7. Frisco — Median sale price increasing from $541,750 to $725,000, or 33.8 percent home price growth
  8. Plano — Median sale price increasing from $430,000 to $570,000, or 32.6 percent home price growth
  9. Flower Mound — Median sale price increasing from $510,000 to $664,000, or 30.2 percent home price growth
  10. Mission — Median sale price increasing from $185,005 to $240,000, or 29.7 percent home price growth

Available inventory took a big hit in 2021 and 2022, with the following 10 Texas housing markets seeing inventory decline the most:

  1. Bryan — Available inventory decreasing from 51 to 23, or a 54.9 percent decline in inventory year over year
  2. Dallas — Available inventory decreasing from 2,121 to 1,374, or a 35.2 percent decline in inventory year over year
  3. Atascocita — Available inventory decreasing from 233 to 151, or a 35.2 percent decline in inventory year over year
  4. The Woodlands — Available inventory decreasing from 240 to 161, or a 32.9 percent decline in inventory year over year
  5. Richardson — Available inventory decreasing from 133 to 90, or a 32.3 percent decline in inventory year over year
  6. Carrollton — Available inventory decreasing from 147 to 104, or a 29.3 percent decline in inventory year over year
  7. Tyler — Available inventory decreasing from 66 to 47, or a 28.8 percent decline in inventory year over year
  8. Irving — Available inventory decreasing from 181 to 133, or a 26.5 percent decline in inventory year over year
  9. Houston — Available inventory decreasing from 6,172 to 4,635, or a 24.9 percent decline in inventory year over year
  10. Pearland — Available inventory decreasing from 147 to 114, or a 22.4 percent decline in inventory year over year

Call Us Today to Speak with a Texas Corporate Real Estate Attorney

Do you need help with a commercial real estate transaction in Texas? Make sure that you have a Texas commercial real estate attorney working with you so you can achieve the best possible outcome for your situation.

Structure Law Group is well aware of how much stress real estate decisions can cause for people, and we will work closely with you so you do not have to handle any difficult situation by yourself. You may call (512) 881-7500 or contact us online to receive a consultation with our Texas commercial real estate attorney.