This year, home prices may remain flat or even drop slightly, but renters may see rising rates. Those are two predictions from the 2024 Texas Real Estate Forecast released Thursday from the Texas Real Estate Research Center at Texas A&M University. As part of the report, a team of researchers analyzed several areas including new construction, multi-family and single-family housing. Here are some of the key takeaways related to the residential market impacting homebuyers and renters.
- Single-family housing construction will increase and return to pre-COVID levels.
- Texas will continue to lead the nation in new single family home construction
- Average single-family home prices are expected to remain flat or dip slightly. The current average home price in Texas is roughly $340,000
- Multifamily effective rent growth will strengthen, averaging 2.5 percent for the year in metropolitan areas
- New apartment growth will slow down..
NBC 5 Anchor Brittney Johnson discussed the predictions with researcher Daniel Oney. He explained why apartment developers slowed construction and the reason renters may see an uptick in prices later in the year.
"Interest rates started rising, about a year ago and developers stopped delivering, they stopped starting new projects. So eventually, we're going to see that pipeline dry up a bit. And then you're going to see even more pressure on rents, because, again, people have not stopped, you know, starting families, they've not stopped moving to Texas. So, our population continues to grow," said Daniel Oney, Ph.D. Research Director at Texas Real Estate Research Center at Texas A & M University.
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The report also lists new state laws on zoning, property taxes and the permitting process that go into effect this year. You can learn more about the changes and how they might impact cities across Texas in the full report.
