Texas has long boasted a strong economy, favorable business conditions and a relatively low cost of living that includes affordable home prices. These claims have made it attractive to residents of other states and countries. “If you want to own a cheap home,” a 2015 CBS News article declared, “you may want to head to Texas.”
Despite the state’s sunny reputation, the reality is far more complex. Most Texans do not enjoy the same level of affordability available to them in prior decades.
According to the Texas A&M Real Estate Center, the median sales price of a house has increased 75 percent since 2000, far outpacing inflation. Median household
incomes have increased just 31 percent in that time span, with their real values mostly stagnant. Today, more than 43 percent of Texans can’t afford a house over $150,000—
yet the median sales price is $196,000.
Read more...The Scarcity of Texas Affordable Housing via Dallas Fed