Housing Market 2024: 6 Affordable Cities in Texas for First Time Homebuyer
Being a first-time homebuyer is a dream for many Americans. Yet, the road to homeownership has been arduous for many, due to a confluence of factors, such as inflation, exploding mortgage rates, low inventory and high home prices.
Check Out: 7 Locations Where Housing Prices Are Plummeting Post-Pandemic
Read Next: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Yet, the 10 counties with the largest net domestic in-migration were mostly in the South, according to a recent report from the U.S. Census Bureau. Further, the Lone Star State led the way, with five of these counties attracting the most Americans, yet not all cities are equal when it comes to home affordability.
Here are a few Lone Star cities that can be attractive for first-time homebuyers.
1. Wichita Falls
According to Realtor.com senior economic research analyst Hannah Jones, many Texas cities are quite affordable for first-time homebuyers. A few stand-out, such as Wichita Falls.
“For buyers who are open to a smaller town, Wichita Falls is an affordable option. The median listing price in Wichita Falls in April was $231,500, more than $140,000 lower than the statewide median,” said Jones.
She added that the area has seen inventory more than double over the last year, suggesting buyers are in a good position. “In today’s housing market, the typical 25-34 year-old buyer would only spend about 25% of their income on housing in Wichita falls, less than the 30% rule-of-thumb.”
2. Lockhart
Lockhart is another one that stands out, Jones said. “For buyers looking to be closer to a large metro area, but don’t mind a drive, Lockhart offers both affordability and commutability to Austin or San Marcos.”
The median listing price in Lockhart was $339,000 in April, almost $40,000 below the statewide median, added Jones, noting that Lockhart is located about 30 miles from central Austin, offering buyers affordability within commuting distance of an economic hub.
3. Haltom City
This is a good option for first time buyers looking to be closer to the center of a metro, Jones noted, adding that it is located in Northwest Fort Worth, and is just a few miles from the city center.
“The median listing price in Haltom City was $274,000 in April, about $100,000 below the statewide median,” she said, further stating that the city is also about 30 miles from central Dallas, offering buyers the opportunity to work in either For Worth or Dallas while taking advantage of the area’s affordability.
4. Manor
With homes available from $400,000 and a quick drive to downtown Austin, this city has become one of the most desirable in central Texas, according to Dan Hnatkovskyy, an Austin-based housing expert, co-founder and CEO of a marketplace for new construction homes NewHomesMate.
“Its proximity to the technology hubs in North Austin makes it a top choice for growing families,” he added. In comparison, Austin averages 30% to 40% higher for a single-family home, which makes Manor a great option for first-time homebuyers looking to enter the market.
“While Samsung is the largest employer in the region, Manor has a diversity of industries; from small manufacturing to the growing retail options,” he noted, adding that with continued investment in all areas of the Austin metro, there will continue to be opportunities and economic stability for residents.
5. Baytown
Baytown is just 30 minutes from Houston and according to Hnatkovskyy, you can find amazing homes for under $350,000.
“With a solid school district and plenty of new shopping and dining coming to town, it is no surprise this is one of the top areas in the Houston Metroplex,” he added. “When the ocean is in your backyard, fun is always right around the corner.”
He added that like much of Houston, Baytown’s largest employers are in the petrochemical industry.
“With many of those jobs located near the Houston Ship Channel anyone living in Baytown will enjoy a very short commute. In addition, the shipping and chemical industries in Houston continue to grow so career opportunities abound for those that put down roots in the area.”
6. Mesquite
There are lots of great cities in the Dallas Metroplex, but Mesquite balances affordability with the excitement of big-city living better than most, he said, adding that homebuyers can find a wide array of prices and neighborhoods all located close to shopping, dining, and entertainment.
“With new construction homes available in the $350,000 range, it is hard to beat,” Hnatkovskyy said.
In addition, he said that Mesquite offers relatively affordable home prices compared to other Dallas sub-markets. “Historically, cities like Plano have been the go-to for first-time buyers and families, but the prices for those cities have increased dramatically over the years, so other areas like Mesquite are more attractive these days.”
Situated just east of Dallas, Mesquite offers quick access to the major local employers and it is also a growing destination for the arts with the Mesquite Arts Center and Mesquite Symphony Orchestra bringing a bit of big-city culture to the community.
Learn More: Don’t Buy a House in These 5 US Cities That Have Shrinking Populations and Fewer Buyers
“You get a lot for your dollar compared to other Dallas-area cities,” Hnatkovskyy noted.
More From GOBankingRates
I've Secretly Put Us in Serious Debt: How To Break the News to Your Spouse
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: Housing Market 2024: 6 Affordable Cities in Texas for First Time Homebuyer
