Texas's Top Investing Cities

In Texas, everything is bigger, including real estate investment options. The Texas economy is thriving, thanks to abundant natural resources, prestigious schools and universities, and a diverse range of sectors. Many multinational corporations have relocated their headquarters to Texas due to favorable tax legislation and other business-friendly conditions. More than 50 Fortune 500 firms are headquartered in Texas. In a nutshell, there are numerous possible tenants. Let's examine each of Texas' four biggest cities in greater detail.

Austin

Everything is bigger in Texas, including real estate investment opportunities. The Texas economy is prospering, thanks to plentiful natural resources, prominent colleges and institutions, and a varied range of industries.

Due to advantageous tax legislation and other business-friendly conditions, several international businesses have relocated their headquarters to Texas. Texas is home to more than 50 Fortune 500 firms in total. In a nutshell, there are various potential tenants. Let's take a closer look at each of Texas' four biggest cities.

Dallas

The Dallas-Fort Worth-Arlington metro area is the second-best Texas market for ranch investment. In recent years, the metroplex's population has increased by 1.8 percent (to over 7.5 million people), and employment has increased by 18 percent. Like Austin, renting here is more favorable, especially in the downtown areas.

Houston

In terms of rental markets in Texas, Houston came in third. Despite the fact that the area's population is increasing (by 1.3 percent since 2017), employment is not increasing as it does in neighboring towns. Jobs have increased by only 8.9% in the last five years, and given the recent blows to the oil and gas industry, those gains are likely to be wiped out.

When you factor in the recent 35 percent increase in building permits, you're looking at a highly competitive market for what may soon be a declining number of rentals.

San Antonio

San Antonio isn't too far away from Austin in terms of distance (an hour or so for most), but its rental market potential is vastly different, according to our analysis. For one thing, it does not have the same youthful population as its neighbor. Nearly 40% of Austin's population is between the ages of 20 and 39, making them prime renters. In San Antonio, just 31% of the population falls into this category.

With a population of 2.5 million people, the city has significantly fewer renters than Houston and Dallas, especially given the enormous number of military personnel who live on bases. (Fort Sam Houston, Randolph Air Force Base, Lackland Air Force Base, Camp Bullis, and Camp Stanley are all in San Antonio.)

One can be found in the city

While many of these Texas towns provide better investment opportunities than others, none of them are bad picks. Our researchers examined 188 markets and discovered that all of Texas' major cities were in the top third. Other Texas cities made the list as well, so go through the whole data set to learn more about the state's rental investment opportunities.