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 Elsa according to our analysis.
Here’s a look at the top ten places to buy a home in Texas for 2019:
- Elsa (Photos | Homes For Sale)
- Pecos (Photos | Homes For Sale)
- Kermit (Photos | Homes For Sale)
- Yoakum (Photos | Homes For Sale)
- Roma (Photos | Homes For Sale)
- Commerce (Photos | Homes For Sale)
- La Marque (Photos | Homes For Sale)
- Lampasas (Photos | Homes For Sale)
- Elgin (Photos | Homes For Sale)
- Sanger (Photos | Homes For Sale)
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.
For more Texas reading, check out:
- These Are The 10 Best Counties To Live In Texas
- 10 Best Places To Raise A Family In Texas
- These Are The 10 Best Places To Retire In Texas
How do you determine the best places to buy a home in Texas for 2019?
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 2013-2017 and compared it to the previous vintage (2012-2016). 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 349 places made it through our initial filters to even be considered.
We then ranked each place from 1 to 349 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 Elsa is the best potential gem in the not-so-rough in the Lone Star State.
Read on for more on these places.
Elsa was settled as ranch land before 1800. Anglo-Americans settled in the area in the early 1900s; the town was laid out with the coming of the Texas and New Orleans Railroad in 1927, and incorporated in 1940.
Pecos is one of the numerous towns in West Texas organized around a train depot during the construction of the Texas and Pacific Railway. These towns were subsequently linked by the construction of U.S. Highway 80 and Interstate 20. Prior to the arrival of the railroad, a permanent camp existed nearby where cattle drives crossed the Pecos River. With the introduction of irrigation from underground aquifers, the city became a center of commerce for extensive local agricultural production of cotton, onions and cantaloupes. The introduction of large-scale sulfur mining in adjacent Culberson County during the 1960s led to significant economic and population growth. The growth was reversed after mining operations ceased in the 1990s.
Kermit began as a convenient supply center for the scattered ranches of the area. Kermit became the seat of Winkler County when the county was organized in 1910. The first public school and the post office opened the same year. The town’s namesake, Kermit Roosevelt, once visited the T Bar Ranch in northern Winkler County to hunt antelope a few months before the town was named. In 1916, the county suffered a drought. Many homesteaders and ranchers were forced to leave. In 1924 only Ern Baird’s family remained in the town. Only one student attended school in the county for five months of 1924. Only three houses and the courthouse were in use by 1926.
Roma was established in 1821 in what had been the Spanish province of Nuevo Santander.
The town of Commerce was formed when two merchants named William Jernigan and Josiah Jackson established a trading post and mercantile store located where the present day downtown area is. The rural area just to the northeast of the area was an open prairie area originally known as Cow Hill. The town was established in 1872 and named Commerce due to the thriving economic activity, and cotton fields and ideal farm and ranch lands between the Middle and South Sulphur rivers on the rich, black gumbo prairie in northeast Hunt County. The town incorporated in 1885. Two years later, a railroad was built through Commerce to transport merchandise from Fort Worth, and nine years later, William L. Mayo, a college educator, moved East Texas Normal College from the Northeast Texas town of Cooper to Commerce after the original school in Cooper was destroyed in a fire. Mayo continued as president of the college, now known as Texas A&M University-Commerce, until his death in 1917 and is buried on the campus grounds.
La Marque, also known as Highlands and as Buttermilk Junction, is an incorporated residential community on Interstate Highway 45, State Highway 3, and Farm roads 519, 1765, and 2004, some twelve miles northwest of Galveston in northwestern Galveston County. The community was originally known as Highlands, probably for its location near Highland Creek, and was renamed in the 1890s when residents learned of another mainland community of the same name. Madam St. Ambrose, postmistress, chose the new name, which in French means “the mark.”
For his services in the Texas Revolution, John Burleson received 1,280 acres of land and established a permanent settlement in the 1850s. The city was first named Burleson; however, the name was gradually changed to Lampasas Springs because of the existence of seven mineral springs. When the county was created in 1856, the law specified -The county seat shall be same name as the county.- The city of Lampasas was officially incorporated in 1883.
The City of Elgin owes its existence to a major flood of the Colorado River in 1869. Originally, the railroad was to have run from McDade, 10 miles east of Elgin, southwest to the Colorado River at a point somewhere between Bastrop and Webberville, then to Austin following the river.
Sanger was founded in 1886 as a stop on the Santa Fe Railroad. Cattle from the ranches of north Denton County were driven up the old cattle trails through Sanger to northern markets. The cattle industry of the prairies of north Denton County contributed to the founding of the town, and wheat growing contributed substantially to its economy, as did the production of oats, maize, millet and cotton. The Santa Fe named Sanger in honor of one of its customers, the Sanger family, who owned stores in Waco and Dallas. The F.M. Ready family was the first to settle in Sanger in October 1887, the same year as the first engine and caboose. Following the decline of the original rail line, the 1920 building of a state highway that connected Sanger and Dallas helped compensate for the declining rail business.
There You Have It – The Best Places To Purchase A House In Texas for 2019
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: