The steady commercial property growth in Texas has more new commercial construction (Retail, industrial, office) than any other state in the US- skyrocketing the number of potential buyers from all over the country and overseas. Austin and Dallas have become the center of commercial property investment and the most preferred markets in the US due to lower tax brackets, investment from the oil and gas industry, and high employment rates.
Photo by CBRE
Followed by the business boom and population growth (1.6% in 2022), Texan cities saw a rise in demand for residential properties. Since the housing shortage makes buying affordable housing in the metropolis challenging, individuals are leaning towards suburban homes near downtown.
Why is the Texas Residential Market Near Downton Growing Stronger?
Texas has become employment heaven due to the headquarters of notable companies, Hotel Chains, top graduate schools, and military facilities. The Texan metropolitans -Dallas, Houston, Austin- saw a massive $53.7 billion in transactions regarding commercial properties. Therefore, nearby residential properties turned competitive as they foreshadow generous returns as first homes and short-term rental properties.
Due to the absence of state income tax and lower mortgage rates, the TX housing market attracts first-time home buyers. Also, the enjoyable weather and diverse community attract prospective buyers interested in communal living.
Top 3 Texas Residential Properties with Great Cost Appreciation
Olmos Park, Bexar County
Ongoing commercial construction at Bextar County created a vacuum of skilled workers, increasing building costs and construction time. As a result, 2023 saw a 22.5% rise in apartments in downtowns and nearby suburbs. Yet, if you want a detached suburban home close to acclaimed schools and economic zones, go for Olmos Park.
The historical community, which dates back to the 1920s, is surrounded by downtown San Antonio- simultaneously offering the tranquility of a small community and a big city. The residential properties of Olmos Park range from detached family houses to stone cottages and condos. However, residential property prices fall under the maximum range in TX due to growing demand, location, and amenities.
- The price of detached houses starts from $590,000.
- 12 minutes away from the city Centres of San Antonio- making it one of the sought-after neighborhoods by higher executives.
- Texas A&M University-San Antonio and the Alamo Community College District are nearby.
Las Ventanas, Fort Worth
Now might be the perfect time to buy a house in Fort Worth as the city’s residential property market saw a 7.4% drop in the median house compared to May 2022 due to higher interest rates. If you want to join the exponentially expanding economy fueled by generational oil wealth and cattle and get a great deal out of the price drop and availability, you will not regret investing in the Las Ventanas neighborhood near the FW business hub.
Unlike the other neighborhoods of the region, Las Ventanas’ property market has room to grow, and the property price appreciation rate is high. Core to the military heritage, aerospace industry, and oil and gas companies, this community is a hidden gem of TX that buyers often overlook.
- Single-family residence price starts from $395,000 with 47.3% increase in active listings.
- 15 mins away from downtown Fort Worth and 30 mins away from downtown Dallas with access to Highway 183 and 35 West- posing rental opportunities.
- Residents can access the best US companies: GE, American Airlines, BNSF Railway, Pier 1 Imports, Exxon Mobil, AT&T, and many more.
Arlington, Tarrant County
Home to young professionals and a growing community, you will never lose money on a residence in Arlington. After the fierce competition in the post-pandemic real estate era, Arlington’s housing market has cooled down- a 5.1% median price drop compared to 2022.
Arlington’s strategic location close to a job district of 2 million employees gives a massive advantage to individuals moving in from other states. Since this neighborhood curates 80 public parks, cafes, recreational zones, and a huge school district, buyers or individuals looking to start a family move to the city.
- A home price starts from an affordable $160,000 with a 47.4% increase in active listing
- Arlington Independent School District, with 84,000 students.
- Top Companies include General Motors, Marriott International, D.R. Horton, Inc., J.P. Morgan Chase, Six Flags Over Texas, etc.
After the 2008 housing crash, TX residential property grew strong, returning a good ROI through rental properties and house flipping. Also, the technology hubs, business and school districts, fossil fuel companies, and military facilities will never leave a resident out of employment options in Texas.