{"id":173927,"date":"2024-06-12T13:44:45","date_gmt":"2024-06-12T19:44:45","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=173927"},"modified":"2024-06-12T13:46:39","modified_gmt":"2024-06-12T19:46:39","slug":"texas-has-the-fastest-growing-cities-but-is-it-due-for-a-bust","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/texas-has-the-fastest-growing-cities-but-is-it-due-for-a-bust","title":{"rendered":"Texas Has Some of the Fastest-Growing Cities in the United States\u2014Should You Invest Before It&#8217;s Too Late?"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Everything is bigger in Texas\u2014including the growth of some of its most under-the-radar cities. According to the latest <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.census.gov\/newsroom\/press-releases\/2024\/subcounty-population-estimates.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">U.S. Census Bureau<\/span><\/a><span data-preserver-spaces=\"true\"> figures, between July 2022 and July 2023, eight of the 15 fastest-growing citi<\/span><span data-preserver-spaces=\"true\">es in <\/span><span data-preserver-spaces=\"true\">the nation were in Texas.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The unassuming Dallas suburb of Celina saw meteoric growth of 26.6%, more than 53 times the nation&#8217;s average growth rate of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.macrotrends.net\/global-metrics\/countries\/USA\/united-states\/population-growth-rate#:~:text=The%20population%20of%20U.S.%20in,a%200.31%25%20increase%20from%202020.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">0.5%<\/span><\/a><span data-preserver-spaces=\"true\">. Following Celina were several smaller, less well-known Texas towns:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Fulshear:<\/span><\/strong><span data-preserver-spaces=\"true\"> 25.6% increase<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Princeton:<\/span><\/strong><span data-preserver-spaces=\"true\"> 22.3% increase<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Anna:<\/span><\/strong><span data-preserver-spaces=\"true\"> 16.9% increase<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Georgetown:<\/span><\/strong><span data-preserver-spaces=\"true\"> 10.6% increase<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Prosper:<\/span><\/strong><span data-preserver-spaces=\"true\"> 10.5% increase<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Forney:<\/span><\/strong><span data-preserver-spaces=\"true\"> 10.4% increase<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Kyle:<\/span><\/strong><span data-preserver-spaces=\"true\"> 9% increase\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Larger Texas towns fared well, too. Houston is currently the fourth-largest U.S. city, gaining on third-place Chicago.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Texas?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Favorable taxes, jobs, lower-priced housing, a warm climate, and high-quality living have all driven the population surge from colder, high-priced Northern cities. However, the dramatic population increase in smaller towns might be more straightforward than that.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">&#8220;The list of fastest-growing cities includes a lot of smaller cities that are not likely to be on many people&#8217;s radar,&#8221; said Danielle Hale, chief economist of Realtor.com, in a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/trends\/census-americas-fastest-growing-cities-home-prices\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">press release<\/span><\/a><span data-preserver-spaces=\"true\">. \u201cSmaller areas often top these lists because their smaller size makes it easier for them to see <\/span><span data-preserver-spaces=\"true\">large<\/span><span data-preserver-spaces=\"true\"> percent changes.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How Affordable Are the Top Small Towns in Texas?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to Realtor.com data, affordability <\/span><span data-preserver-spaces=\"true\">isn&#8217;t always<\/span><span data-preserver-spaces=\"true\"> at the top of the list when choosing a place to live.<\/span><span data-preserver-spaces=\"true\"> Celina&#8217;s median home price of $679,999 is way above the national average. <\/span><span data-preserver-spaces=\"true\">Rather<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">it&#8217;s coveted<\/span><span data-preserver-spaces=\"true\"> for its good schools and low crime rate. The hour-long commute to Dallas is also a plus.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Similarly, Fulshear, also high on the list, has a median home price of $519,000 and is only an hour away from Houston.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Texas Cash Flows, Too<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">While some of <\/span><span data-preserver-spaces=\"true\">the fastest-growing cities in Texas comprised<\/span><span data-preserver-spaces=\"true\"> pricey single-family homes, less expensive housing in the state also dominates the country&#8217;s <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\"> markets<\/span><span data-preserver-spaces=\"true\">, too.<\/span><span data-preserver-spaces=\"true\"> Texas occupied six of the 10 most cash-flowing markets in the U.S.<\/span><span data-preserver-spaces=\"true\">, according to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/best-real-estate-markets-for-cash-flow\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BiggerPockets data<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Southern Texas is a Great Place to Invest<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">McAllen, Texas, has been an investor favorite for years. According to BiggerPockets data, the city has a rent-to-price ratio of 0.84%, a median &#8220;owner-occupied&#8221; sales price of under $100,000, and a median rent price of around $800. Low-cost housing and rents mean that many investors can scale quickly.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Although <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/realestateandhomes-search\/McAllen_TX\/overview\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Realtor.com<\/span><\/a><span data-preserver-spaces=\"true\"> data tells a slightly different story, with the median home price sold being $285,300, this is likely due to the vast spread of house prices between lower and higher in the city, which offers <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zippia.com\/company\/best-biggest-companies-in-mcallen-tx\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multiple types of employment<\/span><\/a><span data-preserver-spaces=\"true\">, from consulting services, financial services, medical, and education. Homes valued at around $150,000 in 2023 experienced an <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.texastribune.org\/2024\/04\/26\/texas-property-tax-cuts-analysis\/#:~:text=According%20to%20a%20recent%20analysis,2023,%20without%20accounting%20for%20inflation.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">80% increase<\/span><\/a><span data-preserver-spaces=\"true\"> in market value over the preceding five years. Other areas saw prices increase by over 100% in the same period as residents from California and elsewhere relocated during the pandemic amid the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">remote working boom<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">BiggerPockets data reveals that the other southern Texas cities of Odessa, Corpus Christi, and El Paso also dominate the highest cash flow cities in the country due to affordability. The border towns and Gulf areas offer multiple types of employment, from military bases to medical, e-commerce fulfillment centers, food processing, and energy. In an age of high interest rates, these affordable Texan towns with robust employment make them great places to invest, either as an all-cash buyer or with a larger down payment, to refinance once rates fall.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Beware of Rising Property Taxes<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Though many parts of Texas offer affordable housing, pricier cities that have appreciated significantly in recent years have seen property taxes soar, making them some of the most expensive in the country.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to a recent analysis by <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.axios.com\/local\/san-antonio\/2024\/04\/10\/how-much-texas-bexar-property-taxes-increased#\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Axios<\/span><\/a><span data-preserver-spaces=\"true\">, median property taxes on Texas single-family homes grew by 26% between 2019 and 2023 without accounting for inflation. Lawmakers have been trying to stem the increases and have had some success. Many property owners across the state saw their taxes fall by 28% in 2023.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">&#8220;The bottom line is that it&#8217;s a much more taxpayer-friendly environment, particularly for homeowners, than it was before 2019, and even more so after last year&#8217;s increase in the homestead exemption,&#8221; Lynn Krebs, a research economist at the Texas Real Estate Research Center at Texas A&amp;M University, told <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.texastribune.org\/2024\/04\/26\/texas-property-tax-cuts-analysis\/#:~:text=According%20to%20a%20recent%20analysis,2023,%20without%20accounting%20for%20inflation.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Texastribune.org<\/span><\/a><span data-preserver-spaces=\"true\">. Before the cuts, some residents saw their tax bill increase by as much as 31% between 2018 and 2023.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The issue of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/property-tax-faq\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">property taxes<\/span><\/a><span data-preserver-spaces=\"true\"> is contentious. Dispensing with taxes that <\/span><span data-preserver-spaces=\"true\">would otherwise have been used<\/span><span data-preserver-spaces=\"true\"> for school district maintenance is a tough sell beyond what has already <\/span><span data-preserver-spaces=\"true\">been achieved<\/span><span data-preserver-spaces=\"true\">. Lieutenant Governor Dan Patrick told the Texas Public Policy Foundation last year that the state would need approximately $55 billion to offset the cost of school district maintenance for 2024-2025, amounting to almost two-fifths of the state&#8217;s $144.1 billion general fund budget.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Should taxes continue to increase without the relief of lower interest rates, investors would need to look closely at their bottom-line cash flow numbers and choose to invest with large down payments or as all-cash buyers. <\/span><span data-preserver-spaces=\"true\">Those who invested over a decade ago have enjoyed some <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/forums\/48\/topics\/1167142-texas-financially-deadly-property-taxes\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">golden <\/span><span data-preserver-spaces=\"true\">years<\/span><\/a><span data-preserver-spaces=\"true\"> in<\/span><span data-preserver-spaces=\"true\"> appreciation and cash flow.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, that doesn&#8217;t mean another halcyon era of Texas investing doesn&#8217;t lie ahead. With <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.texasrealestatesource.com\/blog\/companies-moving-to-texas\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">businesses relocating<\/span><\/a><span data-preserver-spaces=\"true\"> and cities attracting new residents, Texas remains a great place to deploy your cash. However, unless you&#8217;re ready to put down a large amount of money, look at least for <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-appreciation-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">appreciation<\/span><\/a><span data-preserver-spaces=\"true\"> rather than cash flow.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_162649eab970911974c124f122ec0914\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_c2754443a4e4cefd8cc28f0b15662b8a\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_818f30c95390b0240f6c3c8e3bd6b150 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/texas-has-the-fastest-growing-cities-but-is-it-due-for-a-bust&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/texas-has-the-fastest-growing-cities-but-is-it-due-for-a-bust&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Everything is bigger in Texas\u2014including the growth of some of its most under-the-radar cities. According to the latest U.S. Census Bureau figures, between July 2022 and July 2023, eight of [&hellip;]<\/p>\n","protected":false},"author":613725,"featured_media":173929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7364],"tags":[],"class_list":["post-173927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-markets"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/173927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=173927"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/173927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/173929"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=173927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=173927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=173927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}