Ever since the pioneer era of westward expansion, people have looked at Texas’ rugged landscape with a mixture of hope and awe. Of course, times have changed since then. Skyscrapers now dot the state, where once you found sprawling ranches. And freeways filled with commuting automobiles have replaced the old horse-and-buggies. But Texas’ reputation as a destination for dreamers and entrepreneurs remains.
If you’re looking to invest in real estate, you should consider the Lone Star state. A mixture of favorable demographic trends, innovative real estate technology, enticing tax incentives and affordable opportunities make Texas an attractive place to plant your stake – just as it was 200 years ago.
In this article, let’s parse out what makes Texas ripe for real estate investment.
Steady Population Growth Makes Texas Real Estate a Wise Investment
This Texas Comptroller report tells you everything you need to know about the future of the Lone Star state. Compared to the relative growth of the US population, the Texas population is growing at a breakneck pace – a sharp upward line showing no signs of abating. Experts point to a mixture of inbound domestic migration and international immigration centred on hubs like Dallas, Houston and Austin.
As the Texas population swells, so will its real estate market. Some real estate observers forecast a 10% year-over-year increase in Texas home prices over the next decade. Combine those forecasts with a relatively cool present market, and Texas looks like an attractive investment.
Texas Proptechs Make the Process Simple and Streamlined
One benefit of buying real estate in Texas is how convenient the process is. Other states, slow to adopt real estate technology, still operate on manual, opaque and consumer-indifferent practices. But not Texas. Recently, Texas has emerged as a technology hub, carrying a slew of proptech (property technology) innovators that have streamlined the real estate industry.
Take Nobul for example. The innovative company, led by tech maverick Regan McGee, recently landed its services in Texas. A consumer-centric real estate digital marketplace, Nobul gives consumers a transparent and comprehensive overview of their realtor choices. And the platform encourages real estate agents to compete for buyers’/sellers’ business – rather than the other way around. It’s just one way that real estate technology in the state is helping elevate the consumer experience.
Opportunities for Tax Breaks and Exemptions
Texas is infamous among homeowners and investors for its hefty property taxes. But what most people neglect to mention is that the state is also generous in its breaks, exemptions and incentives.
State-offered perks are too numerous to detail in this article, but this legal article offers a handy rundown for interested readers.
There’s No Shortage of Distressed Properties for Investors
A last benefit of real estate in Texas – at least from an involved investor’s perspective – is the abundance of distressed properties. Among states, Texas has one of the highest foreclosure rates. And many of these foreclosures and REOs are located in the Dallas area.
You can typically find reduced prices for distressed properties in Texas, making them a creative way to enter the market. Granted, many distressed homes need some love and attention, but they represent a wise investment for those willing to put in the extra time and money.
As investors, buyers and innovative tech companies continue to flock to Texas, its real estate market should only get more attractive. Take advantage of a relatively balanced current market to reap the benefits of buying in the Lone Star state.
