There’s a the age old question everyone thinks about when they decide to move to a city in Texas:
Should I buy a place or rent?
Well, we aren’t here today to solve that problem for you exactly. We are just assuming you’ll do the right thing and a buy a place 😉
And while we are happy to tell you the best place to live in Texas, this analysis is going to tackle the question of the best place to buy a house as an investor. That is we are going to try and determine the up and coming cities in the Lone Star State.
To do that we are going to look at places in Texas that are growing faster than average, but where home prices are below average. In every day terms, the ‘deals’.
The best deal in Texas at the moment? That would be Ingleside according to our analysis.
Here’s a look at the top ten places to buy a home in Texas:
- Ingleside (Homes)
- Rosenberg (Photos | Homes)
- Eagle Pass (Photos | Homes)
- Henderson (Photos | Homes)
- Odessa (Photos | Homes)
- Andrews (Photos | Homes)
- Lockhart (Photos | Homes)
- Crowley (Photos | Homes)
- Bryan (Photos | Homes)
- Lubbock (Photos | Homes)
The methodology that wen’t into this can be a bit complicated, so we’ll break it down for you in as much detail as we can below.
How do you determine the best places to buy a home in Texas?
We were in real estate for almost five years and have been working on this site for another three. Suffice is to say, we’ve put a lot of thought into what goes into finding a good place to buy a home.
So all that thinking has come to this moment where we get to spell out how we’d approach finding an up-and-coming place to live in Texas. Put differently, the analysis will try to find places in Texas with undervalued homes relative to pent up demand.
To do that we looked at the most recent American Community Survey Census data for 2012-2016 and compared it to the previous vintage (2011-2015). Specifically, we used the following criteria:
- Y-o-Y Change In Population (People want to live here)
- Y-o-Y Change In Median Home Prices (People are willing to pay for it)
- Home Prices Relative To The State Average (It’s still kinda cheap)
We want places that are growing, have seen home prices increase in recent years, and are still ‘cheap’ for Texas with the following caveats:
- Home prices had to be within 20% of the state average (Much lower than that and you get to some of the more dangerous places)
- Home prices increased in the last year, and
- Above 5,000 people (Bigger cities have more data points)
So of the 1,687 cities and towns in Texas, only 52 places made it through our initial filters to even be considered.
We then ranked each place from 1 to 52 for the criteria mentioned above with 1 being the best for that criteria. We averaged the rankings to create a ‘best place to buy’ index with the place having the lowest index being the best.
Turns out that Ingleside is the best potential gem in the not-so-rough in the Lone Star State.
Read on for more on these places.
Ingleside is located on the south-east tip of San Patricio County. Situated on the Corpus Christi Bay. The early communities of Ingleside have been known as Old Ingleside, Inwood, Ingleside Cove, Ingleside-on-the-Bay, Palomas, Cove City and Cove. The earliest community began in 1854 when George C. Hatch purchased land on both sides of the bayou. He later acquired over 3,800 acres (15 km2) of land, which he sold to Walter Ingalls, Henry Nold, James Aware, John Pollard, John W. Vineyard and others. They built homes on the bayou and at Ingleside Cove. Local lore and legend credits John Vineyard with naming Ingleside, which means ?Fireside.? Vineyard named Ingleside for his ancestral home in Scotland.
Rosenberg is named after Henry Rosenberg, who was of Jewish ancestry and migrated from Switzerland to Galveston, Texas in 1843.Rosenberg was the first president of the Gulf, Colorado and Santa Fe Railway.
3. Eagle Pass
Eagle Pass was the first American settlement on the Rio Grande. Originally known as Camp Eagle Pass, it served as a temporary outpost for the Texas militia, which had been ordered to stop illegal trade with Mexico during the Mexican-American War. Eagle pass is so named because the contour of the hills through which the Rio Grande flows bore a fancied resemblance to the outstretched wings of an eagle.
The city of Henderson was established by European Americans before the State of Texas was founded. It was developed on land donated by W.B. Ochiltree and James Smith; it became the county seat of Rusk County when an act of legislature created Rusk County on January 16, 1843. The First Methodist and First Baptist churches were established in 1842 and 1845, respectively. The first courthouse, made of wood, was completed in 1849. After the Civil War, the International and Great Northern Railroad crossed through Rusk County but bypassed Henderson. In 1874, the Henderson and Overton Branch Railroad Company built a stretch of railroad connecting Henderson to the tracks running through Overton. This stretch of railroad was later sold to the Missouri Pacific Railroad (now Union Pacific) and remains in use to this day.
Odessa was founded in 1881 as a water stop and cattle-shipping point on the Texas and Pacific Railway. The first post office opened in 1885. Odessa became the county seat of Ector County in 1891 when the county was first organized. It was incorporated as a city in 1927, after oil was discovered in Ector County on the Connell Ranch southwest of Odessa.|With the opening of the Penn Field in 1929, and the Cowden Field in 1930, oil became a major draw for new residents. In 1925, the population was just 750; by 1929, it had risen to 5,000. For the rest of the twentieth century the city’s population and economy grew rapidly during each of a succession of oil booms (roughly in the 1930s?50s, 1970s and 2010s), often with accompanying contractions during the succeeding busts (particularly in the 1960s and 1980s).
The city of Lockhart is named after Byrd Lockhart, an assistant surveyor of Green DeWitt and reportedly the first Anglo to set foot in Caldwell County. Lockhart was the site of a victory of the Texans over the Comanche, at the Battle of Plum Creek in 1840. Lockhart was originally called ‘Plum Creek’ but the name was later changed to Lockhart.
Around 1848, pioneers began farming the area around Deer Creek. The settlement moved a mile or so west to the site of present-day downtown Crowley when the Gulf, Colorado & Santa Fe Railroad built pens and laid tracks there. The first station depot was built in 1885. The community was named for S. H. Crowley, who was the master of transportation for the railroad.
The area around Bryan was part of a land grant to Moses Austin by Spain. Austin’s son, Stephen F. Austin, helped bring settlers to the area. Among the settlers was William Joel Bryan, the nephew of Stephen Austin. In 1866 the county seat of Brazos County was changed from Boonville to Bryan, and a post office was opened. In 1867, after many delays caused by the Civil War, the Houston and Texas Central Railroad, which had only previously gotten as far as Millican, finally reached Bryan. A short time later, in 1871, the city of Bryan became incorporated. Just south of Bryan, Texas A&M College opened in 1876 in what later would be known as College Station. The following year, 1877 saw the establishment of the Bryan Independent School District. Keeping up with progress in the rest of the country, Bryan added electric lighting and a waterworks to its community in 1889. The fifth Brazos County courthouse was built in 1892, and by the turn of the century, in 1900, the International-Great Northern Railroad stopped in Bryan.|Using a generous grant of $10,000 from Andrew Carnegie, the Carnegie Library of Bryan opened its doors in 1902. In 1910 the town built an interurban railroad to College Station. By 1923 the line was abandoned. The first Jewish place of worship, the Temple Freda synagogue, was opened in 1913. During the 1930s the town of North Oakwood merged with Bryan. Now Bryan and College Station are ‘twin’ cities. In 1936 State Highway 6 was built, running right through town.
Lubbock County was founded in 1876. It was named after Thomas Saltus Lubbock, former Texas Ranger and brother of Francis Lubbock, governor of Texas during the Civil War. As early as 1884, a U.S. post office existed in Yellow House Canyon. A small town, known as Old Lubbock, Lubbock, or North Town, was established about three miles to the east. In 1890, the original Lubbock merged with Monterey, another small town south of the canyon. The new town adopted the Lubbock name. The merger included moving the original Lubbock’s Nicolett Hotel across the canyon on rollers to the new townsite. Lubbock became the county seat in 1891, and was incorporated on March 16, 1909. In the same year, the first railroad train arrived.|Texas Technological College (now Texas Tech University) was founded in Lubbock in 1923. A separate university, Texas Tech University Health Sciences Center, opened as Texas Tech University School of Medicine in 1969. Both universities are now overseen by the Texas Tech University System, after it was established in 1996 and based in Lubbock. Lubbock Christian University, founded in 1957, and Sunset International Bible Institute, both affiliated with the Churches of Christ, have their main campuses in the city. South Plains College and Wayland Baptist University operate branch campuses in Lubbock.
There You Have It – The Best Places To Purchase A House In Texas
There’s our analysis of the best places to buy a house in Texas. And, to be clear, we aren’t necessarily saying these places are the best places to live, just that it looks like they might be in a couple of years based on the data.
In fact, every place in the following table meets our criteria, so even though it may not look super long, remember we started off with all 0 places in the state.
So if we’d could rent or buy in these cities, we’d definitely buy.
For more Texas reading, check out:
Detailed List Of The Best Places To Buy A Home In Texas