dallas texas skyline
Buying, Virtual Home Tours

Millennials in the Market: Texas Edition

Finding a home in a Texas metro is now safer and easier than ever due to the vast amounts of virtual tours. We’re bringing you some fast facts about their local markets. 

Shares 0

As the coronavirus pandemic continues to hamper personal interactions in real estate, many homebuyers are touring homes virtually. The Texas metro regions of Austin, Dallas and Houston are known for their millennial friendliness, and have some of the most robust virtual home tour content on Homes.com. Since finding a home in these cities is now safer and easier than ever, we’re bringing you some fast facts about their local markets. 

Austin-Round Rock

Of the thousands of locations listed on Homes.com, Austin is in the top 40 for virtual listing content – meaning more virtual videos, photos or tours for buyers to view. 

austin texas skyline
Instagram: @_jeremybanks

A city full of youth, professional mobility, and culture, people just can’t seem to get enough of Austin. According to recent census data, it’s the third-fastest growing metro region in the country, thanks in part to its strong economy and job opportunities. Millennials make up an astounding 33% of the area’s 2.2 million residents, driving the median age to about 35 years (younger than the US average of 38).

Pros for Millennial Buyers: 

  • According to Homes.com data, Austin home prices have appreciated an average of 5.5% every year since 2011. However, that number has slowed in recent years. Since 2017, the average annual rate of appreciation is only 1.4% – meaning home prices aren’t running away from buyers as quickly.
  • Austin boasts a high quality of life with top-notch outdoor recreation, world-class art, safe schools and opportunities for higher education.

Cons for Millennial Buyers:

  • Current median home prices are just shy of $316,000. This is significantly higher than the national median of $284,600  (but we should note it’s still lower than several other urban areas).
  • According to the National Association of Homebuilders, Austin’s Housing Opportunity Index (HOI), is ranked 150th out of 235 metro areas nationwide, with about 63% of homes considered affordable for the local median income. While this is a majority, it’s not a robust percentage compared to other cities, and competition may be stiff for homes on the market. 

Dallas-Fort Worth-Arlington

The Dallas metro area has more virtual listing content on Homes.com than almost every other city, so homebuyers have no shortage of homes to hit the “Save” button on. This inventory of content isn’t surprising — Dallas has added over a million residents since 2010, leading the country in metropolitan population growth in the decade since. Like it’s Austin counterpart, millennials make up about a third of this region’s 8 million residents. 

dallas texas skyline

 Pros for Millennial Buyers:

  • Since 2011, the average annual price growth for starter homes in the area is about 6.5%. However, the first half of 2020 has seen the price growth for all price points drop to about 3% – meaning it might be time for millennials to jump into the market sooner rather than later.
  • Median home prices now hover just under $297,000 in Dallas and just under $253,000 in Fort Worth. Though the median price in Dallas is higher than the national median price, it’s still well within reach for many.
  • The job market is one of the most thriving in the country, outranking every other metropolitan area in year over year growth. Along with its strong local education system, this makes Dallas an ideal place for families and singles alike.  

Cons for Millennial Buyers:

  • Traffic! With such immense growth in a relatively short amount of time, Dallas highways haven’t fully adapted yet. The DART city transit system helps ease congestion, but newer residents may find routes confusing.
  • The Dallas metro region ranks even lower than Austin for it’s HOI, with less than 57% of homes affordable to median income earners. Like Austin, this signifies greater market competition.

Houston-The Woodlands

The southernmost city on our list, Houston is ranked #5 on Homes.com’s cities with the most virtual tour content. If you’re a millennial looking for urban amenities, a diverse culture, and proximity to the coast, Houston may be the perfect place for you. Right on the heels of Dallas, the Houston metropolitan area experienced the second-highest population growth over the last decade, with over a million people now calling the area home. Like our previous two cities, about a third of the region’s 7 million residents are millennials, helping keep the median age at a young 34 years.

austin texas skyline

Pros for Millennial Buyers:

  • Houston’s median single-family home price is the lowest in our list, coming in at $249,000. In fact, Houston’s housing costs are almost 50% lower than the 20 most populous cities in the country.
  • The area has recently ranked as a city where paychecks stretch the furthest, and the cost of living is almost 5% lower than the national average.
  • Jobs in engineering, business, technology, and medical fields are highly available.

Cons for Millennial Buyers:

  • The local economy is dependent on the energy sector, and can experience volatility depending on market fluctuations.
  • It’s proximity to the Gulf of Mexico makes the area prone to heat, humidity, and hurricanes.
  • Price appreciation for starter homes since 2011 has averaged 6.2% each year, and doesn’t appear to be slowing down long-term. While this is great for owners, it could keep some newer buyers out of the market. 

If you’re thinking about buying in the Lone Star State, Homes.com has simply smarter tools to help you get started. From mortgage calculators to a comprehensive “How-To” guide, we’re your one-stop resource to find your dream home.

Shares 0
See more posts by this author

Audrey is the Marketing and Communications Coordinator at Homes.com, with a master's degree in strategic communication. A lifelong arts aficionado, she's also a part-time dance teacher in Virginia Beach. Wife to aerospace engineer Ryan and fur-mom to rescue pup Lucy, she's the self-declared World's Greatest Pizza Lover who lives for chocolate and a sunshine-filled day at the beach.

Leave a Reply

Your email address will not be published. Required fields are marked *