In recent years, the state of Texas has established itself as one of the markets with the greatest investment opportunities in the U.S., particularly in the real estate sector. The state’s large population, growing employment rate, and lower cost of living compared to other parts of the country combine to make it a sought-after destination for investors.

Texas has a population of nearly 29 million people, which has grown by 14% over the past ten years—an increase of more than 1,000 people per day—and has been growing exponentially in recent years. Five of the eleven fastest-growing U.S. cities over the past ten years are in Texas; with their cultural diversity and many tourist attractions, they stand out as attractive places to live.

If Texas were a country, it would be the world’s tenth-largest economy, with a GDP of USD 1.886 trillion and a per capita GDP of over USD 50,000, which has been growing at an average annual rate of 5% according to IMF data. 

The state of Texas has mortgage ratesthan the national average and has no income tax, providing a solid foundation for considering it an attractive place to invest in real estate. In addition, the state leads the U.S. in job growth, creating new jobs at an annual rate of 4%, which is double the national average.

In Texas, there is a triangular region known as the Texaplex, comprising the Dallas-Fort Worth, Houston, Austin, and San Antonio metropolitan areas, where 75% of the state’s population lives—more than 21 million people. According to the Texas State Demographer’s Office, the Texaplex will grow to 2.1 times its current size over the next 35 years.

Austin

Austin is the capital of the state of Texas. It has the fastest-growing population in the entire state, with a 9% increase over the past three years, reaching nearly 2 million residents.

It has a per capita GDP of USD 55,420, and in 2019 it ranked first in *U.S. News & World Report*'s annual ranking of the best cities to live and work in the U.S. 

Dallas 

Dallas serves as a strategic hub for the manufacturing and financial sectors, which account for a significant portion of the state’s GDP. More than 10,000 national and international companies have their headquarters in Dallas, including Toyota, Amazon, and Deloitte, among others. 

The area has several universities and colleges, which makes it attractive for rental real estate businesses, given that the vast majority of college students come from other parts of the country and need a place to live.

Houston

Houston is a dynamic city that has moved beyond an oil-based economy, which today accounts for only 2.4% of jobs. Its population has grown by 21.6% over the past ten years, reaching over 2.3 million people, making it the fourth most populous city in the U.S. Furthermore, it is the leading city in the U.S. in terms of new job creation.

Among the area’s key attractions is the Texas Medical Center, the world’s largest medical center, with more than 100,000 employees and a growth plan calling for a 30% expansion in the coming years. Adjacent to this medical center is NRG Stadium, home to the Houston Texans football team and host to one of the state’s most important rodeo events.

With a higher standard of living, greater employability, and attractive tourist and recreational opportunities, Texas offers favorable conditions for investing in the real estate business.