6 Affordable Texas Cities for First-Time Home Buyers

Buying a home for the first time is a dream for many Americans. But the path to homeownership is difficult for many, with many factors at play, including inflation, skyrocketing mortgage rates, low inventory and high home prices.

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Still, the 10 counties with the highest net domestic migration were mostly in the South, according to a recent report from the U.S. Census Bureau. In addition, the Lone Star State led the way, with five of those counties attracting the most Americans. However, not all cities are equal when it comes to home affordability.

Here are some Lone Star cities that may be attractive to first-time home buyers.

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1. Wichita Falls

According to Hannah Jones, senior economic analyst at Realtor.com, many Texas cities are quite affordable for first-time home buyers, with some that stand out, like Wichita Falls.

“For buyers who are willing to accept smaller cities, Wichita Falls is an affordable option. The median asking price in Wichita Falls was $231,500 in April, more than $140,000 below the national median price,” Jones said.

She added that listings in the area have more than doubled in the last year, suggesting buyers are in a good position. “In today's real estate market, the typical 25- to 34-year-old buyer would only spend about 25% of their income on real estate in Wichita Falls, less than the rule of thumb of 30%.”

2. Lockhart

Lockhart is another standout neighborhood, Jones said. “For buyers who want to live closer to a major metropolitan area but aren't afraid of a drive, Lockhart is both affordable and well-suited to commuters to Austin or San Marcos.”

The median asking price in Lockhart was $339,000 in April, nearly $40,000 below the national median, Jones added, noting that Lockhart is about 30 miles from downtown Austin, offering buyers affordable prices within commuting distance of an economic center.

3. Haltom City

This is a good option for first-time buyers who want to live closer to the center of a metropolitan area, Jones noted, adding that the property is located in northwest Fort Worth and just a few miles from the city center.

“The median asking price in Haltom City was $274,000 in April, about $100,000 below the national median,” she said, adding that the city is also about 30 miles from downtown Dallas, giving buyers the opportunity to work in either Fort Worth or Dallas while taking advantage of the area's affordability.

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4. Manor House

With homes starting at $400,000 and a short drive from downtown Austin, this city has become one of the most desirable cities in Central Texas, according to Dan Hnatkovskyy, an Austin-based real estate expert and co-founder and CEO of new home marketplace NewHomesMate.

“The proximity to North Austin's technology hubs makes it a top choice for growing families,” he added. In comparison, single-family home prices in Austin average 30 to 40 percent higher, making Manor a great option for first-time buyers looking to get into the market.

“While Samsung is the largest employer in the region, Manor offers a wide variety of industries, from small manufacturing operations to a growing retail offering,” he noted, adding that continued investment in all areas of the Austin metropolitan area will continue to provide opportunities and economic stability for residents.

5. Baytown

Baytown is just 30 minutes from Houston and, according to Hnatkovskyy, you can find great homes there for under $350,000.

“With a solid school district and plenty of new shopping and dining options in town, it's no surprise that this is one of the best areas in the Houston Metroplex,” he added. “When you have the ocean right outside your front door, fun is always just around the corner.”

He added that the largest employers in Baytown, like much of Houston, are in the petrochemical industry.

“With many of these jobs located near the Houston Ship Channel, all Baytown residents can enjoy a very short commute. Additionally, Houston's shipping and chemical industries continue to grow, so there are numerous career opportunities for those who settle in the area.”

6. Mesquite

There are many great cities in the Dallas Metroplex, but Mesquite offers a balance of affordability and the thrill of big city living like no other. Homebuyers can find a wide range of price points and neighborhoods, all close to shopping, dining and entertainment.

“For new construction in the $350,000 price range, it’s hard to beat,” Hnatkovskyy said.

Additionally, he said Mesquite offers relatively affordable home prices compared to other Dallas submarkets. “Historically, cities like Plano have been the top choice for first-time buyers and families, but prices for those cities have increased dramatically over the years, making other areas like Mesquite more attractive these days.”

Located east of Dallas, Mesquite offers quick access to the region's major employers. It's also a growing destination for art lovers: The Mesquite Arts Center and Mesquite Symphony Orchestra bring a bit of big-city culture to the community.

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“Compared to other cities in the Dallas area, you get a lot for your money,” Hnatkovskyy noted.

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This article originally appeared on GOBankingRates.com: Real Estate Market 2024: 6 Affordable Texas Cities for First-Time Buyers