The current housing market in the US is anything but stable. With the rising mortgage rates and historically low housing stocks, it has become a nightmare for foreigners relocating to the land of freedom.

However, the real estate market in Texas shows a glimmer of hope, especially for UK buyers. The Western culture and somewhat similar lifestyle would make any British feel right at home.

But the housing in this state still possesses a lot of complexity due to the emerging trends.

And to help you out in this regard, I have thoroughly explained the current state of the Texas property market in this article, along with 5 Texas neighborhoods that are most suitable for UK buyers.

So, without further ado, let’s get started.

Understanding the Texas Property Market as a UK Buyer

Ever since COVID-19, the US real estate industry has been trying to ride out the risks and waiting for a period of sustained ROI(return on investment). However, the U-turn to a better market never came after the pandemic.

Despite some experts claiming that the market might ease off in 2024, the dynamics are still somewhat messy.

The interest rates have elevated, housing prices have sky-rocketed, and housing stocks have hit a historically low point. All of these can create challenges for anyone who is looking forward to putting down their money in this ever-evolving market.

However, assessing different real estate opportunities in the US gives a more in-depth perspective.

According to reports from Texas REALTORS, home sales have declined in 2023 compared to the previous 3 years, mainly due to high mortgage rates and lower property listings.

However, it is also estimated by many industry experts that the mortgage rate will trend downward as 2024 progresses. (Source: Forbes)

And that’s not all!

The reports from Texas REALTORS also found that the homes in the state were sold at a cheaper rate(around 1.4%) compared to the previous year. That puts the median price of the housing around $335,100. (Source: Houston Agent Magazine)

Eight metro areas in Texas have also seen a record-low price drop, around 10.4 percent.

Furthermore, the number of active property listings has also gone up by 35.6% from 2022.

Another important thing to note is the cost of home insurance, which has also seen a slight reduction in 2024(average $4,142 a year).

So, if you want to jump into the Texas real estate market, the time is now.

That being said, there are still some key aspects you’ll need to consider before moving to Texas from the UK.

Such as down payments, mortgage fees, attorney fees, etc. You’ll also need to factor in local indicators like job opportunities, wage increase, migration patterns, and local population growth.

And if you don’t have a US credit rating, the interest rates might get higher for you, along with higher financial responsibility/viability.

Pro tip: Consider renting a place after moving to the US from the UK before you start investing in the property market. Analyze the market before you throw your money down the chute.

Texas Housing Forecast

The best way to get insights into the real estate market is to check the industry trends and recognize any useful patterns.

For that, you’ll need to move away from common market data and rely more on key economic indicators, such as housing forecasts in a particular region.

That way, you can get a better understanding of the state of the market. Here’s how:

• Texas Median Property Value Today: $309,871
• Texas Median Property Value One Year Ago: $307,822

According to the U.S. Census Bureau and the U.S. Department of Housing, the price of new homes has decreased from $436,400 to $417,300. But the price of existing homes has increased from $392,900 to a staggering $426,900.

As the trend suggests, the cost of existing housing will increase further, but new homes don’t follow the same trend.

Some reports also suggest that the price of new homes will come down if the inventory increases. (Source: Zillow Home Value Index)

Top 5 Neighborhoods in Texas for UK Buyers

Yes, there are other states in the US that are more luxurious for UK buyers which would give a more familiar feel. However, the current housing state in Texas makes it a more appealing option for any foreigner to lay roots here.

Not to mention, the diverse community, economy, and climate can also give a sense of a fresh start.

Among all the vibrant cities of this state, here are the best neighborhoods in Texas for UK buyers:

1. The Woodlands, Houston

Located about 30 miles north of Houston, The Woodlands is a master-planned community known for its high quality of life.

It offers a mix of residential areas, parks, and commercial spaces, creating a balanced and thriving environment. Beautiful single-family homes dominate this area, ranging from affordable apartments to luxury condos.

• Average Housing Price: $392,000

There are also plenty of shops and restaurants, making it suitable for people who like nature and luxury.

Source: Zillow

Due to its proximity to the nation’s fourth largest city, Houston, you can find plenty of employment and entertainment opportunities.

Thus, making it an ideal option for small families looking to start fresh.

In simple words, the Woodlands is a healthy Texan neighborhood famous for its family-friendly culture and lush greenery, which resembles the UK lifestyle quite a lot.

2. Tanglewood, Fort Worth

The neighboring suburb of Dallas, Fort Worth is a modern city located in north-central Texas. This city, along with its neighborhoods is home to rodeos and historical significance.

One of the most noteworthy neighborhoods of Fort Worth, TX is Tanglewood.

It features a mix of mid-century homes, renovated properties, and new constructions, offering a variety of options to suit different tastes and budgets.

• Median Home Price: $917,000

Despite Fort Worth having a much lower average housing price, the property cost in Tanglewood is not cheap. I’d recommend contacting local real estate agencies, like Reside Real Estate, to get the best deals in this area.

All things considered, people relocating from the UK with families will appreciate Tanglewood due to its various attributes. Such as:

• Strong sense of community.
• Top-rated public schools
• Proximity to parks and recreational facilities.

The neighborhood is also close to shopping, dining, and cultural attractions.

3. West Lake Hills, Austin

With a healthy economy and a lower crime rate(around 11.7%), Austin is one of the best places to live, especially for foreigners. It has a diverse culture and ample opportunities for both career and educational aspects.

And just west of downtown Austin, you’ll find the affluent neighborhood of West Lake Hills, along with its scenic views of the hills.

It is also home to the famous Austin Lake. As a result, it has a unique mixture of nature and urban living. This offers a sense of familiarity to many potential UK buyers who are used to living in the countryside.

• Average Housing Price: $2,140,000

Most of the available properties in this area are luxury homes with large plots and scenic views. Hence, the price is on the upper side compared to other suitable neighborhoods in Texas.

However, these homes are worth the price and have decreased by 5.2% in cost over the past year. (Source: Zillow)

4. Highland Park, Dallas

If you love elegance and a family-friendly atmosphere, Highland Park in Dallas should be at the top of your wishlist. This beautiful spot is one of the richest neighborhoods in Texas, and the housing cost reflects that very well.

• Median Housing Cost: $2,669,000

As a result, the residents in this neighborhood lead a very comfortable and luxurious lifestyle.

Source: Zillow

So, if you’re moving from the UK to the US for an upgrade in lifestyle, this is it.

Furthermore, the tree-lined streets of Highland Park are accompanied by grand historic homes, modern mansions, and upscale condos.

It is also a popular spot for famous parks in the US and boasts high-end shops and restaurants. Heck, you might even catch a celebrity shopping or dining here.

5. Tarrytown, Austin

Tarrytown is a gated neighborhood in the west of downtown Austin, Texas. No other community offers as familiar of a feel of British culture as this one. It is one of the most sought-after residential spots due to its tranquil yet convenient lifestyle.

Not to mention, the housing options are quite affordable compared to other vibrant communities in Texas.

• Median Home Price: $199,000

Most of the properties are basically a mix of historic bungalows, modern homes, and luxury estates.

Furthermore, the overall lower crime rate(around 12%) of this area may come as a surprise, especially in such a diverse and historically rich neighborhood.

Adding the fact that Tarrytown is also home to many highly-rated schools, makes it a better choice for families with kids.

Final Thoughts

To be blunt, Texas doesn’t have many direct similarities with the UK. That being said, its diverse cities and vibrant lifestyle can help any foreigner acclimate to the US environment pretty easily.

Not to mention, the no state income tax can allow your investment to grow quicker compared to other US property markets.

Anyway, that’s it for today. I hope this write-up has provided you with all the information you were looking for.

Have a nice day!