Texas has no shortage of land, which makes it somewhat puzzling to see people investing in areas like Prosper, Celina, and Little Elm. While RTO is gaining traction, many companies are also mandating that employees work in the office at least 3 days a week, with the possibility of increasing that number to 5 in the near future. I’m not sure why house prices are 700-800K. With the exception of big tech companies, the ceiling for total compensation in Dallas, Austin, Houston is around 150k across industries such as banking, insurance, and telecom. It’s clear that the value of land in Texas is not going to be valuable, unlike states California and Washington. Imo, too many houses are now available in Texas area but no one is willing to buy them. I am sure these house prices will be stagnant for next 10 years TC: 274
Any area that's not land supply constrained is on shaky ground.
Real estate in those places is probably for cash flow, not asset valuation increases.
Austin RE has NEVER been cash flow, only appreciation play. This stench now spread to Dallas as well lately.
In general I agree, but smaller specific areas may remain pockets of high price because of school districts or other attractions. We do like to solve the supply problem in TX but in places like Austin there is no near-term fix there. I think the population demographics play the majority of the role here, and until the Boomer gen starts dying or moving into assisted living you aren’t likely to see demand drop.
This posts ignores almost all the basics of location location location. It has nothing to do with total area. Idiots.
Location doesn’t matter when there is enough land available to build more neighborhoods, towns and cities. Bag area, San Diego, NYC, Florida and Washington have limited supply. Agree with OP. It’s not just Texas but also states like Georgia, NC, SC where there is abundant land to build more homes.
They have limited supply precisely because of their location. Until time and distance don’t matter, location wins. Idiot.
Austin is still high demand , the house prices changed so much since previous year it’s not down till now , Area like cedar park ,Avery ranch has millions of dollar houses
Few asian/indian people are still moving in from seattle/california to Austin, they are snatching up places closer to freeway/good schools. From their point of view, they already saved few hundreds for down payment in bay area, so they can pay 40-50% in down payment. From the builders perspective, why lower price when people will pay same high interests as they did in lower interest? Sell them the loan contract also and make $$$
This💯
The equation's fairly simple. ~1hr from metro convenience + < 10min from good local amenities + quaint towns + on average larger lots + rising tide lifts all boats = high prices in subrural TX. If you look at "willingness to commute" distributions, there's a decreasing but not-insignificant number of folks willing to do an hour commute. After that, it drops off to noise. Correspondingly, go beyond ~1hr commute to metro and prices generally decline (or plots get so large that the prices increase...but price-per-acre tends to drop) Edit: Also, ~1hr out is about the extent you will find good internet. Even if you can off-grid and go well water, the people that can afford the homes see quality internet in general as a non-negotiable. Hughesnet is horrible.
No one is talking about TC ceiling in Texas.
What TC ceiling? You’re at Amazon? My L8 makes over 1MM here and is pretty honest about it.
😂🤷🏻♀️ There’s so much nothingburger in your TED Talk I can’t start to respond!
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