In a nutshell
The center published its 2024 Texas Real Estate Forecast on Jan. 4, which examines big-picture trends that may affect the market. The center’s research team then uses several principles to project how the market will perform in 2024.
"The 2024 Texas Real Estate Forecast is not just a prediction,” research director Daniel Oney said in a statement. “It's a thoughtful, consensus-based economic tool for empowerment. It equips real estate decision makers with the knowledge needed to navigate the complexities of the Texas real estate market."
Two-minute impact
Several highlights from the report include:
Residential market
- Single-family inventory is expected to increase with construction projected to reach prepandemic levels.
- Single-family prices are expected to remain near $340,000.
- Multifamily rent is expected to grow 2.5% over the previous year.
- Office space inventory is expected to increase with deliveries expected to surpass 2023 levels.
- Retail rents are expected to end the year up 2%.
- Statewide inventory is expected to increase between 1.5%-3%.
- Industrial rents are expected to continue increasing but at a slower pace than 2023.
The forecast projects delivery of single-family housing to return to prepandemic levels with growth of almost 4% expected over the previous year. Median home prices could dip slightly but are expected to stay near $340,000 across the state.
Office space inventory across the space could increase by 10 million square feet, while retail space is expected to remain the same.
Rural land sales are expected to continue declining in 2024. Median land price is expected to reach a near-term peak before declining.
The forecast is available to view on the real estate center’s website.
Quote of note
“Given the powerful economic influence of the state’s real estate assets, we focused our new forecast on real estate decision makers who shape our economy and impact more than 30 million Texans,” Oney said. “Texas is a real estate trendsetter in the U.S. when it comes to residential, commercial, and land markets, so we thoughtfully analyzed more data than usual this year to help us determine if the state’s statistics from the previous year could be sustainable in 2024.”
