Lake Shops at Legacy in Plano, Texas. This large suburb of Dallas has the hottest housing market in … [+]
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Thousands of Americans have been migrating to Texas over the last decade, with the pace picking up significantly in the last five years. Not surprisingly, this influx of people along with organic growth in population has led to greater demand for housing. With home buying rebounding from the pandemic, Texas housing markets are hotter than ever. Using data from Redfin, including the number of new listings, pending sales, for-sale inventory, and median sale prices from May 2020 to May 2021, we’ve determined the top-five hottest housing markets in Texas. Read on to find out which cities made the list.
Plano
Plano is located in the Dallas-Fort Worth metro area, beginning as a mere suburb of Dallas before growing into a large city in its own right, boasting a population of over 285,000, according to World Population Review. Plano has always been sought after by home buyers, but over the last year, demand has severely squeezed the city’s housing supply. From May 2020 to May 2021, Plano’s available for-sale inventory fell by 60.6%, from 632 down to 249 a year later. Pending sales have increased substantially, by 58.8%, from 274 in May 2020 to 435 in May 2021. Not surprisingly, Plano home prices have risen sharply since last year. The median sale price in Plano increased by 24.6%, from $345,000 in May 2020 to $430,000 in May 2021.
McAllen
This dynamic city on the Mexican border has grown over the years, from an essentially rural town at the beginning of the 20th century, into a major economic hub. Its steady growth has allowed its housing market to usually keep pace, but a recent surge in demand has put McAllen’s available inventory under pressure. From 532 available homes for sale in May 2020, McAllen’s inventory dropped by 48.9%, down to 272 homes for sale in May 2021. Pending sales increased by 41.6% and new listings by 19.4%. Homes in McAllen are still comparatively affordable, with a median sale price of $195,000 in May 2021, though that price is up 14.7% since last May.
Irving
Similar to Plano, Irving is a suburb of Dallas that has boomed into one of the largest cities in Texas, with a population well over 230,000. Over the last year, Irving’s housing market has heated up, with the number of pending sales increasing by 50% from May 2020 to May 2021. Facing surging demand, Irving’s available inventory has plunged by nearly 62%, from 373 homes for sale in May 2020, down to only 142 in May 2021. Meanwhile, prices have climbed by almost 22% year over year, from a median sale price of $283,000 last May, to $345,000 as of May 2021.
Frisco
To the northwest of Plano lies Frisco, a city whose growth over the last decade is stunning. From a population of 116,989 in 2010, Frisco’s has grown to more than 209,000, according to the city’s website. Frisco was already popular among home buyers, but over the last year, the housing market has gotten especially hot. Pending sales rose by 42% from May 2020 to May 2021, while Frisco’s available inventory plummeted by 70.5%: From 863 homes for sale in May 2020, down to only 255 homes by the end of May 2021. With demand high and inventory dwindling, Frisco’s median sale price rose by almost 24%, from $437,000 in May 2020 to $541,000 in May 2021.
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Dallas
Dallas, like so many of its neighboring suburbs, has witnessed its housing market catch fire. Demand for housing in the city has surged over the last year, with the number of pending sales up 60.6%, from 1,075 in May 2020 to 1,726 in May 2021. As a result, available inventory has been reduced by more than half. Last May, there were 4,123 homes for sale in Dallas. A year later, in May 2021, available inventory was down to 1,839 homes. With the market so tight, Dallas home prices have risen sharply since last year. From $316,000 in May 2020, Dallas’s median sale price has grown by almost 33% in only a year, reaching $420,000 in May 2021.