The Urban vs. Suburban Debate: Where Are Buyers Investing in Texas?

[Kent Ford]

With the growing demand for both urban living in cities like Austin and suburban areas surrounding Dallas and Houston, where do you think the next big wave of homebuyers is heading? What factors are influencing these choices?

[Jay Thomas]

Hey Kent! Right now in Texas, we're seeing a lot of demand in both areas, but suburban spots around Houston and Dallas are especially hot due to affordability, space, and work-from-home flexibility. Urban areas like Austin still attract buyers for the lifestyle and tech-driven job market.I believe more buyers will lean towards the suburban areas because of interest rates and getting more for their money.

[Bruce Lynn]

I would agree with @Jay Thomas that all 3 cities and the other big cities in Texas are all experiencing growth in both urban and suburban areas.  The new homes will be mostly built in the burbs, and I expect as we move forward outside of many city limits or in smaller cities where the builders can control the narrative with less regulations, less inspections, less red tape, lower requirements.

Due to the number of people moving though, we'll see some urban infill as well I expect.  Dallas just implemented a new plan call Forward Dallas in Sept or Oct.  I expect that it somewhat follows Austin's lead.  Haven't heard about Houston or San Antonio, but just like many cities nationwide they all feel the need for more affordable housing and have hopes urban infill can help that.  Of course, tough to build 50,000 units in one person's back yard, but there will be some people build granny flats, or garage apartments and you may see some office converted to residential.  Probably just see a combination of solutions as we add more and more people....Dallas/DFW we're adding about 50,000 people a month last I heard.

[Kent Ford]

Quote from @Jay Thomas:

Hey Kent! Right now in Texas, we're seeing a lot of demand in both areas, but suburban spots around Houston and Dallas are especially hot due to affordability, space, and work-from-home flexibility. Urban areas like Austin still attract buyers for the lifestyle and tech-driven job market.I believe more buyers will lean towards the suburban areas because of interest rates and getting more for their money.

You’re absolutely right that there’s demand in both urban and suburban markets in Texas. With suburban spots around Houston and Dallas gaining traction for affordability and space, how do you think the trend will evolve if interest rates continue to rise? Do you see urban areas like Austin losing their appeal or is there still enough draw from tech jobs and lifestyle to keep that market strong? Would love to hear your thoughts!