I’m a Real Estate Agent: Here Are 5 Texas Cities Where You Should Avoid Buying a Home

Angela Mae
Art Wager / Getty Images
Art Wager / Getty Images

Texas is still ranked as one of the more affordable states to live in, according to Missouri Research and Information Center. The state’s overall cost of living index is 92.7 and most things — including groceries, transportation, healthcare and housing — fall below the national average.

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In terms of residential real estate, the median list price in The Lone Star State is $384,900. Compared to the national median of $417,700, this is still significantly lower.

But just because homes are cheaper in certain areas of the state doesn’t mean you should necessarily purchase property in those locations. A lot goes into buying a home, after all. Things like property taxes, the local cost of living and weather conditions all play a major role in choosing where to buy — and where not to.

So then, where should you avoid buying a home in Texas? GOBankingRates asked a couple of real estate agents. Here’s what they said.

Collin County (Dallas-Fort Worth-Arlington Metro)

“Not everywhere in Texas is a good place to live,” said Deba Douglas, real estate agent at INC Realty, LLC and CO of Douglas Dwellings, LLC. “You have to think about the high property taxes, natural disaster zones, quality of life, and home value.”

One area Douglas suggested avoiding is Collin County. This includes cities like Allen, McKinney and Farmersville.

“Any city within Collin County will have a high property tax rate. Collin County is a suburb of Dallas and has a median tax estimation of $6,377,” Douglas said. “This county has a growing population which means there is more need for school and resources. People who live in the county are constantly trying to lower the tax rate to a livable and fair rate, but the numbers just increase every year.”

The average home value in Collin County is also well above the national average at $528,972. This combined with high property taxes could make the area too expensive for the average homebuyer.

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Houston

Houston is a big city with plenty to do, but it’s also not necessarily the best place to buy a home. The typical home listing price is $269,461, but this is a 41% drop over the past year.

The city’s location is another reason why you might not want to purchase property there.

“Houston, Texas, is a disaster-prone place, which is why you should keep your distance from there. Houston is a part of ‘tornado alley’ but not only that, they are a common place for flooding, hurricanes, sinkholes, and hail storms,” Douglas said. “You will have to save up a lot of money or have great insurance to be able to live there. In case of an emergency situation, you will also need to have a savings account that would be able to repair any known issues that arise from such disasters.”

South Dallas

While some parts of Dallas might be OK, Douglas suggested avoiding South Dallas specifically.

“The median home price is $301,042, with [an] average household income of $37,618. The place is full of crime, not even getting above a walk score of 0. Sixty-seven percent of the population is renting because they are not able to afford to buy a home.”

Lost Creek

“Lost Creek, Texas, is a city that has such a high home value that you would need to have a very high-paying job in order to live there comfortably,” Douglas said. “In Lost Creek, the average home value as of January 2024 was $1,299,012.”

The property tax rate in Lost Creek hovers around 2%. Even though other cities have higher property taxes, even 2% is substantial when the property itself costs well over $1 million.

El Paso

Located in West Texas, El Paso is home to roughly 677,000 people, making it the most populous city in that area. While this could indicate more opportunities for work, not all jobs are well-paid in the city.

“El Paso, Texas, is not where you want to live if you want to have a job that pays the bills,” Douglas said. “[It] has a low salary satisfaction rate that is going up, but if you want to live there and have a family, it would be hard to build up to the point where you’re living debt free.”

The typical home listing price on Zillow is $221,636 in El Paso. This is a 41.6% decrease over the past year. While homes might be more affordable in this area, the potentially lower wages and decreased property values could become problematic for newcomers.

Consider This Before Moving To Texas

Many places in Texas are still worth moving to. You’ll just need to weigh the various factors involved and make your decision wisely.

“In Texas, homebuyers navigate a complex terrain of economic variables and natural challenges, from hurricanes along the Gulf Coast to tornadoes in the north,” said Jason Lee Villarreal, Realtor at Martha Turner Sotheby’s International Realty. “For those considering where to settle, Texas demands a thoughtful evaluation of lifestyle, financial goals and personal preferences to truly find a place that resonates as home.”

Depending on your financial situation, your needs and even the neighborhood, your experience buying a home in Texas could be vastly different from the next person. Even places that make this list — like Houston — could be worth checking out if they fit your unique circumstances.

“Regions like San Marcos and New Braunfels shine with their affordability, lower taxes and central location, offering a balance of cost and convenience without the heightened disaster risks of coastal areas,” Villarreal said. “Meanwhile, Houston stands out as a vibrant hub of culture and economy, boasting a diverse culinary scene and robust job market across sectors like energy, healthcare and aerospace.”

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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: Here Are 5 Texas Cities Where You Should Avoid Buying a Home

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