A new report by Realtor.com highlights Texas as the fastest-growing state in the nation, with housing, job opportunities, and climate emerging as key factors driving the influx of new residents.
The state has experienced significant economic expansion in technology, education, manufacturing, and construction since the COVID-19 pandemic, according to Danielle Hale, chief economist at Realtor.com.
More than 25% of homebuyers in Texas are from out of state, with the largest migration sources being international arrivals and relocations from California.
Texas leads the country in new housing permits, accounting for 15% of all permits issued in 2024, despite making up only 9% of the U.S. population. The median size of a newly built home in Texas is 2,073 square feet—smaller than the national average—indicating a trend toward affordability. Nearly half of the state’s for-sale inventory is priced at $350,000 or below, compared to 40.1% nationally.
Historically, Texas has been known for its affordable housing market, but home prices surged during the pandemic due to high demand and limited supply. The state has since expanded housing development, stabilizing prices and returning inventory to pre-pandemic levels.
Texas also stands out for its rental market, offering affordable options and a strong job market, making it an attractive destination for both homebuyers and renters alike.
As Texas continues to expand its housing market and attract new residents, the state remains on a trajectory for further economic and population growth. However, challenges persist, particularly in ensuring that home prices align with the income distribution of its residents.
While Texas has prioritized building affordable homes, disparities still exist in access to homeownership for lower-income families. Addressing these gaps will be key to sustaining the state’s housing momentum.
The Realtor.com report suggests that Texas’s strategies—such as increasing housing supply and maintaining affordability—could serve as a model for national discussions on housing policy, affordability, and urban development.
