Overview of the Commercial and Residential
Real Estate Market in Texas
Texas is the second most populous state in the country for good reason, it is one of the few states with 10 distinct ecoregions. In addition to the geographical diversity, the Lone Star State has three of the ten largest cities in the United States. According to the U.S. Census, 2,195,914 of the 26,505,637 total Texans live in Houston. The city has a median home value ($123,900) that is $5,000 less than the state's ($128,900). Houston's median household income is $45,010 compared with $51,900 for the state. San Antonio has a population of 1,409,019, a median home value of $113,800, and a median household income of $45,722. The famous city of Dallas has 1,257,676 people, a median home value of $129,300, and median household income of $42,846. While some feel lower oil prices could hurt the state's housing market, Realtor.com predicts that Dallas and Houston will continue to be strong markets thanks to affordability and good employment numbers.
Industry leader, CBRE Group, is forecasting continued demand for all property types in the Dallas-Fort Worth area. According to CBRE, 106 companies have expanded their operation or newly located in the Metroplex area in the past four years. The retail market had a vacancy rate of 7.6 percent in Q4 2014. Lease rates were about $14.07 per square foot. Rental rates for office space in Houston ended 2014 at $26.78 per square foot and had a vacancy rate of 11.5 percent. The retail market had a historically low vacancy rate of 6.1 percent. Houston is short on Class A office space and the rental rate for all available office properties averaged $15.05 per square foot. The vacancy rate for industrial property was about 4.9 percent at the end of 2014.
Office Rental and Executive Suites in Houston, TX
How to Become a Realtor in Texas
The Texas Real Estate Commission seeks to encourage economic growth and protect the public interest by ensuring that all licensed real estate agents in the state are properly trained and conduct their business ethically and honestly. The Commission requires applicants for a real estate salesperson license complete a minimum of 210 class hours of approved real estate courses. Applicants must apply for their license within six months of passing the state exam. To become a real estate broker, agents need at least two years active experience within the preceding 96 months of applying for their Texas real estate broker license. Broker applicants must also successfully complete 270 hours of approved real estate classes and 630 class hours of approved related courses. Texas does not have reciprocity with other states.