Texas Housing Market Shifts as Inventory Surges, Price Drops Materialize in Some Areas
• Housing inventory in Texas has more than doubled since the pandemic low, with over 88,000 listings now available. This is the highest level since 2019.
• Prices are already falling in some Texas markets, with year-over-year declines of 8.2% in Austin and 5.7% in Beaumont.
• Texas builds more homes than any other state, but the high level of new construction combined with fewer pandemic-era migrants could lead to oversupply and falling prices in 2024.
• For buyers, more inventory and potential price declines are a positive. But for investors, Texas housing may not appreciate much in value in the coming years.
• Unlike supply-constrained coastal cities, Texas markets can sprawl and add inventory rapidly. This allows prices to swing more quickly.