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Updated 17 days ago, 11/07/2024
How Important is Location for Success in the Texas Real Estate Market?
Texas offers a diverse real estate market, from the tech-heavy Austin area to the sprawling suburbs of Dallas and the oil-rich Houston market. How do you think choosing the right location in Texas impacts the success of a real estate business? Would you focus on booming urban areas, or do you think the suburbs and smaller towns have more potential?
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
Quote from @Kent Ford:
Texas offers a diverse real estate market, from
I would say in many cases price matters most. A good deal is a good deal, however with that said you also have to resell the property so you have to be in a place where people have money, access to credit, and want to live. Both options have their own challenges. Buying in small towns can also limit you access to trades or they charge you more for the trip. It is also nice to have competition and a back up plan with trades. Buy in Austin, Dallas, Houston and you can get bids for work from 2 dozen contractors. Buy in super small towns and they may not have a plumber, electrician or HVAC person who even wants to visit your project?
Any place you are specifically buying? Another consideration to me, is buy where you know best. Where you know the prices, you know what is coming next. Where you know the market and know the people.
Quote from @Bruce Lynn:
Quote from @Kent Ford:
Texas offers a diverse real estate market, from
I would say in many cases price matters most. A good deal is a good deal, however with that said you also have to resell the property so you have to be in a place where people have money, access to credit, and want to live. Both options have their own challenges. Buying in small towns can also limit you access to trades or they charge you more for the trip. It is also nice to have competition and a back up plan with trades. Buy in Austin, Dallas, Houston and you can get bids for work from 2 dozen contractors. Buy in super small towns and they may not have a plumber, electrician or HVAC person who even wants to visit your project?
Any place you are specifically buying? Another consideration to me, is buy where you know best. Where you know the prices, you know what is coming next. Where you know the market and know the people.
Good points on weighing the trade-offs between smaller towns and larger metros. The accessibility to contractors, market familiarity, and buyer demand all play huge roles in the success of a project. Are there certain areas you're currently focusing on, or are you exploring a few markets to see where the best deals come up? The local insight you mentioned can be a real advantage.
Location matters a great deal. When it comes to rentals it effects the rent pricing and how competitive an area can be. A factor I am frequently discussing with clients is the nature of our current market shifts in Texas. For example, if you buy in a semi-rural area or suburban area the pool of applicants can be much smaller and with an increase in supply it creates a downward pressure on prices and higher days on market averages. I've seen new build developments where 10+ units are for rent all at similar prices and sit for months. On the flip side I've seen neighborhoods where we manage multiple units and the house is leased in less than 2 weeks. These examples occur in the same city or surrounding metros. Location is very important. Speak to real estate agents in the areas you are interested in but also speak to property managers who can give you a sense of the rental market and analysis of pricing.
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
Since I live in DFW area I try to buy within about a 2hr drive, but I'm open to other possibilities, but has to be drivable for me. While I look at DFW, for the most part I draw a big circle around DFW and mostly look at the outside of the circle. For me prices are just a little better and less competition. Not everyone has that luxury though. It can be draining if you work all day, then need to drive 2hrs after work and spend 4-5hrs working at the house and then 2hrs back. Makes for a long day or long week.
Quote from @Brandon Rizzo:
Location matters a great deal. When it comes to rentals it effects the rent pricing and how competitive an area can be. A factor I am frequently discussing with clients is the nature of our current market shifts in Texas. For example, if you buy in a semi-rural area or suburban area the pool of applicants can be much smaller and with an increase in supply it creates a downward pressure on prices and higher days on market averages. I've seen new build developments where 10+ units are for rent all at similar prices and sit for months. On the flip side I've seen neighborhoods where we manage multiple units and the house is leased in less than 2 weeks. These examples occur in the same city or surrounding metros. Location is very important. Speak to real estate agents in the areas you are interested in but also speak to property managers who can give you a sense of the rental market and analysis of pricing.
Absolutely, location can make all the difference in rental success! When it comes to pricing and demand, semi-rural or suburban areas often experience less competition among tenants, while urban spots may see units leased within days. Market shifts, especially in Texas, are something we're keeping a close eye on—where some developments may sit for months, others in the same metro area rent out within weeks. Speaking with both local real estate agents and property managers can provide invaluable insights into these trends and help shape a strong investment strategy. Where are you considering investing?
As someone who works in the DFW area, I know firsthand how the right location in Texas can make a huge difference in your success. Urban areas like Austin and Dallas are appealing for growth potential and job markets, but the suburbs and smaller towns offer more unique opportunities (lower entry costs and a steady flow of families and retirees seeking affordability and space). It really depends on your long-term goals and how much work you want to put in. Feel free to reach out if you want to chat more about it!
Quote from @Jordan D'Silva:
As someone who works in the DFW area, I know firsthand how the right location in Texas can make a huge difference in your success. Urban areas like Austin and Dallas are appealing for growth potential and job markets, but the suburbs and smaller towns offer more unique opportunities (lower entry costs and a steady flow of families and retirees seeking affordability and space). It really depends on your long-term goals and how much work you want to put in. Feel free to reach out if you want to chat more about it!
Indeed, the right location in Texas can make all the difference in real estate success. Urban areas like Austin and Dallas definitely have strong growth potential and thriving job markets, but the suburbs and smaller towns are also worth exploring. They tend to have lower entry costs and attract families and retirees looking for more space and affordability. It really comes down to your investment goals and how involved you want to be in the process.
@Kent Ford, location is terribly important, BUT... not for the reasons you list. The importance of location comes from your knowledge of that area. If you don't know the dynamics in an urban area, then you are likely to lose money. If you don't know the dynamics of a small town, same thing.
But if you have intimate knowledge of the nuances of each market, who the buyer is, what they value in their houses generally, you will make money.
In real estate, a huge part of the value we can create as flippers is tied up in the location, but it is also tied up in the improvements we put on that land. So, investing in a market you don't know is like saying: I am going to open a retail business without knowing what product you will sell, how to source the product, or who your customer is and what drives them to purchase.
But, if you know Austin and Houston and Center TX all equally well. You know whether people like to live to the east or west side of town, or want a walkable neighborhood more than a car-focused living experience, or more house or nice finishes, then you will probably be fine in any of those markets. Otherwise, you pick the market you know best and the areas of town within that market you know best.