Residents in Texas have an easier time realizing the American Dream. This includes having the opportunity to rent or buy a place to call their own. A combination of low taxes and minimal regulations encourage the economic efficiency that keeps housing costs low but salaries high. As a consequence, the Real Estate Center at Texas A&M observes that the state’s housing market is historically among the most affordable in the nation. It scored an average affordability index value of about 20% higher than the nation as a whole from 1999 to 2014. More recently, in second quarter 2015, the Real Estate Center calculated that the state’s median income was 1.71 times higher than the income required to qualify for a mortgage on a median-priced home.
A New Hope for Texas Homebuyers
Last week, the Wall Street Journal released an article titled, “Once America’s Hottest Housing Market, Austin Is Running in Reverse.” To the residents of Austin, this is great news—finally, home prices may be coming down. But a dip in home prices is only a drop in the bucket of housing affordability. Housing prices may be...