Yahoo Finance 5 Texas Cities That Are Becoming Unaffordable and 3 Cheaper Alternatives
Once known for its relatively low cost of living, Texas’s increasing popularity and rapid technological growth have driven up living costs in the Lone Star state.
Today, the average home price in Texas is $306,756, reflecting a 1% increase in value over the past year. While this remains below the national average of $360,681, Texas living is no longer as affordable as it once was.
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Unaffordability for New Buyers
The rising unaffordability of Texas property is driven by multiple factors, according to Chris Gleason, a former real estate agent and property tax expert at Ram Financial Group.
Texas’s housing price increases are particularly challenging for new home buyers.
“Skyrocketing home prices are an obvious factor,” Gleason said. “The ticket to get into the show is astronomically higher than it was five years ago. Similarly, higher mortgage rates have now further increased the real cost of owning property.
“At the same time, real wages and income haven’t nearly kept pace. Home prices and the cost of a mortgage have both more than doubled, while wages have only increased by about 3% to 4% per year on average.”
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Unaffordability for Existing Residents
Even existing Texas residents who purchased homes before the market surge aren’t immune to the effects of a volatile housing market, particularly due to rising property taxes.
“Rising home values means bigger property tax bills,” Gleason said. “Since property taxes are a percentage of a home’s assessed value, many property owners have seen their tax bills keep pace with the market.
“Many Texans report that their bill has doubled or tripled over the last several years, leading to thousands of dollars in additional annual expenses that they weren’t counting on.”
Keep reading to discover five cities that have seen significant price hikes in recent years, and some more affordable Texas alternatives.
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Westover Hills
Median Home Value: $2,533,255
With a staggering 18.4% year-over-year price increase, Westover Hills has quickly become one of the most expensive cities in Texas. This quiet community, with a population in the 600s, is renowned for its luxurious homes and tree-lined streets.
As one of the wealthiest cities in Forth Worth, the median home value in Westover Hills stands far above the state’s average.
Highland Park
Median Home Value: $2,662,221
The epitome of wealth can also be found in Highland Park, located in north Dallas. Complete with upscale shopping centers, beautiful residential streets and stunning homes, this city has seen some of the fastest home price growth in Texas in recent years.
With the Texas tech boom leading to wealthier residents and higher-paying jobs in the area, Dallas has seen a significant increasing the demand for luxury housing. In Highland Park, the median home value falls at $2,662,221 and is up 14% over the past year.
Westlake
Median Home Value: $2,818,801
Famous for its natural beauty, Westlake is home to Lake Austin, a serene reservoir popular for paddle boarding, kayaking and boating.
While residents of Westlake enjoy life along the shoreline, this natural beauty comes at a high price point. The median home value is $2,818,801, and home values have increased by 10% over the past year, making Westlake only accessible to a very affluent community.
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University Park
Median Home Value: $2,234,843
University Park, often referred to as the Beverly Hills of Texas, is a quaint 3.7-mile city that has experienced rapid housing price hikes. Nestled in suburban Dallas, this city features stunning parks, lush landscapes and extravagant homes. Just five miles from bustling downtown Dallas, University Park offers quiet, idyllic living with plentiful green space and luxurious amenities.
The advantages of this beautiful city come at a steep price, with a median home value of $2,234,843 and a 12% increase over the past year.
Bartonville
Median Home Value: $1,353,649
Bartonville, a rural town in Denton County, offers extreme luxury with a quaint, small-town feel. While this town maintains a relaxed pace, property prices are far from lax, with a median home value of $1,353,649 and the housing market up 9% over the past year.
Despite its country atmosphere, Bartonville boasts stunning ponds, towering trees and sprawling golf courses, maintaining the city’s luxurious price point.
Cheaper Places in Texas To Consider
If you’re feeling outpriced by these Texas cities that used to be within your budget, you’re not alone. While rising demand and limited supply have driven up prices in many popular Lone Star cities, thankfully, Texas’s vast landscape offers plenty of more affordable options.
Here’s a look at some budget-friendly alternatives in Texas to consider.
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Waco
Median Home Value: $201,700
Home to Baylor University, Waco features a lively downtown area, youthful energy and a low cost of living. With the median home value in this city falling at $201,700, it boasts the lowest cost of living on this list — without sacrificing quality of life.
Lubbock
Median Home Value: $210,393
Known for its affordable housing market and job opportunities in education and healthcare, Lubbock offers an attractive, budget-friendly alternative to major Texas cities. Lubbock’s cost of living is low, the job market is thriving, and you’ll feel right at home in this city known for its friendly and hospitable atmosphere.
Corpus Christi
Median Home Value: $221,575
Situated on the state’s southern end, Corpus Christi has become a popular choice for those seeking a cheaper alternative to Texas’s highly sought-after cities. With a low cost of living and beach access, this city offers serene coastal charm without breaking the bank.
All median home values were compiled from Zillow.
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.
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