A comprehensive report from the Texas A&M Real Estate Research Center indicates that Texas is poised to witness a surge in the delivery of single-family homes and office spaces throughout the state in 2024.
Released on January 4, the “2024 Texas Real Estate Forecast” by the research center delves into overarching trends that could impact the real estate market. Utilizing various principles, the research team provides projections on how the market is likely to fare in the coming year.
Daniel Oney, the research director, emphasized that the forecast is not merely a prediction but a strategic economic tool designed to empower decision-makers in the real estate sector. He stated, “It equips real estate decision-makers with the knowledge needed to navigate the complexities of the Texas real estate market.”
Key Highlights from the Report:
Residential Market:
- Anticipated growth in single-family home inventory, reaching pre-pandemic construction levels.
- Single-family home prices expected to remain close to $340,000.
- Multifamily rent projected to increase by 2.5% compared to the previous year.
Commercial Market:
- Expansion in office space inventory, surpassing 2023 levels.
- Retail rents forecasted to rise by 2% by the end of the year.
Industrial Market:
- Anticipated statewide increase in industrial inventory between 1.5%-3%.
- Continued growth in industrial rents, albeit at a slower pace than in 2023.
Detailed Analysis:
The forecast predicts a return to pre-pandemic levels in the delivery of single-family housing, with an expected growth of almost 4% compared to the previous year. While median home prices might experience a slight dip, they are anticipated to hover around $340,000 statewide.
The commercial sector could witness a surge in office space inventory, potentially adding 10 million square feet. Retail space, on the other hand, is expected to maintain its current levels.
The report also indicates a downward trend in rural land sales for 2024, with the median land price projected to peak before experiencing a decline.
The “2024 Texas Real Estate Forecast” is accessible on the Real Estate Research Center’s website.
