A report released today by WalletHub looks at “2023’s Best Real-Estate Markets” in the U.S., and North Texas cities dominate the Top 10 list. The Dallas suburbs of McKinney and Frisco are ranked No. 1 and No. 2 in the country, with Denton and Allen close behind.
To arrive at the list, the report compared 300 U.S. cities across 17 key indicators of housing-market attractiveness and economic strength.
Following up the two top-rated cities of McKinney and Frisco, Denton ranks No. 4 on the list, barely edged out by Nashville, Tennessee. Allen ranks No. 6 on the list, following Cary, North Carolina at No. 5.
Only one other Texas city made the top 20: Austin, which ranks No. 8.
Fort Worth, Plano, and Richardson show up well on the list, too, ranking No. 22, No. 24, and No. 28, respectively.
Study explored market, affordability, and economic factors
The WalletHub study explored everything from home value forecasts to median days on the market to ratio of rent price to sale price, which were among 10 “Real-Estate Market” factors examined. Also explored were housing and maintenance affordability, population growth rate, job growth rate, and other economic data points.
John Baen, Ph.D., a TAA endowed professor of real estate at the University of North Texas’ G. Brint Ryan College of Business, is quoted in the report as saying that inflation is a key factor impacting the current seller’s market in real estate.
“Houses selling in the affordable range are being snapped up by investors who love the cashflow and tax deductions of these houses,” Baen says in the report. “Many pay cash, and the yields are much higher than CDs, and they get tax goodies and appreciation, which also reduces the inventory of homes available for homeowners and occupants.”
Baen also notes that “house prices in the last 2 years…have increased much faster than incomes. In fact, most people today would not qualify for buying the home they live in due to new rates and high loan standards. So, home owners are sitting tight and not selling. Only recent home buyers and borrowers that found out they could not afford to own houses are entering the market, and new home builders are entering the market.”
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