Home prices could remain flat or even decline slightly this year, but interest rates for renters could rise. These are his two predictions from his 2024 Texas Real Estate Forecast released Thursday by Texas A&M University’s Texas Real Estate Research Center. As part of the report, the team of researchers analyzed multiple sectors, including new construction, multifamily housing, and single-family homes. Here are some key points related to the housing market that impact home buyers and renters.
- Construction of single-family homes will increase and return to pre-COVID-19 levels.
- Texas will continue to lead the nation in new single-family home construction
- Average prices for single-family homes are expected to remain flat or decline slightly.The current average home price in Texas is approximately $340,000
- Growth in effective rents for multifamily housing is expected to pick up, averaging 2.5% per year in metropolitan areas.
- Growth in new condominium construction will likely slow.
NBC 5 anchor Brittney Johnson discussed this prediction with researcher Daniel Oney. He explained why apartment developers have delayed construction and why renters may experience price increases later this year.
“About a year ago, interest rates started going up and developers stopped delivering and starting new projects. So eventually you’ll see the pipeline dry up a little bit. And , rent pressures are going to increase even more because, again, people are starting families and moving to Texas. So our population continues to grow,” Dr. Daniel Oney said. Director of Research at the Texas Real Estate Research Center at Texas A&M University.
The report also lists new state laws regarding zoning, property taxes and permitting that will go into effect this year. Learn more about the changes and how they could impact Texas cities in the full report.