Homeownership across the country is at a historic low. This has not been the case for Texas. While homeownership rates both nationally and in Texas (currently at around 64 and 62 percent, respectively) have been in decline since the Great Recession, Texas is far from its most recent low point—in the early ‘90s when homeownership dipped to the upper 50 percent range.
Immigrant households will play a larger role in growing housing demand. Texas is one of only a few larger states benefitting from positive net migration, which means more people are moving in than out. While much of this migration comes from households moving from other states, that source has tapered down while international households continue to provide steady growth (see figure).
Lower-cost neighborhoods (those with homes priced at or below 75 percent of the median home price) in higher-priced metros (those with median home prices at or above $250,000) have realized the highest growth rates over the past five years. This is certainly the case within the Austin and Dallas metros. The map highlights a handful of Austin neighborhoods that fit this description. For more on Dallas housing prices, check out my recent article “Dallas’ Affordability Puzzle.”
Overall multifamily housing rent growth is cooling. Much of this is due to falling demand for higher-priced units while lower-priced units remain steady. Like the single-family market in Texas, inventory of lower-priced units is becoming scarcer with much of the new construction pipeline focused on the higher-priced market. For a wealth of information about the apartment market near you, check out the multifamily resources under market research on our website.