Real Estate in Texas

[GasMD]

Any opinions/comments why real estate is cheap in Texas as compared to California or NY ? Thanks

---

Members don't see this ad.

 

[GeneGoddess]

More land. Duh...

 

[stoleyerscrubz]

I think the answer is much more complicated than that. The supply of housing available to rent/buy would have a more direct impact on home pricing. The home prices in Houston and other Texas coastal cities are amazingly low. It just does not attract enough people.

More land. Duh...

 

[skypilot]

Any opinions/comments why real estate is cheap in Texas as compared to California or NY ? Thanks

Boston, Massachusetts has some of the highest prices for real estate in the country, Condos go for $350,000.

But drive about 2 hours from here to Springfield, Massachusetts and you can pick up a nice two bedroom condo for $50,000. The lesson: In real estate it is all about location, location, location.

 

[stoleyerscrubz]

None of the cities in Texas have what would be considered expensive real estate, not even the coastal cities.

Boston, Massachusetts has some of the highest prices for real estate in the country, Condos go for $350,000.

But drive about 2 hours from here to Springfield, Massachusetts and you can pick up a nice two bedroom condo for $50,000. The lesson: In real estate it is all about location, location, location.

 

[GasMD]

I know property tax rate is pretty high in Texas ( something like 2.82% as compared to 1.0% in CA). Is that the reason ?

 

[doc05]

I know property tax rate is pretty high in Texas ( something like 2.82% as compared to 1.0% in CA). Is that the reason ?

No.

California is a very desirable place to live, largely because of weather. Texas is hot and humid along the coast; and super-hot inland.

Population trends also play a role. Noone wants to live in the middle of western Texas, because it's so sparsely populated. So everyone moves to Houston and other cities -- to live near the jobs, to live near other people. Hence available land is taken up more quickly, and prices rise.

Even so, it's magnified several-fold in CA and metropolitan NY (upstate NY is dirt-cheap). Less available land, MUCH larger population.

 

[Fantasy Sports]

I think the answer is much more complicated than that. The supply of housing available to rent/buy would have a more direct impact on home pricing. The home prices in Houston and other Texas coastal cities are amazingly low. It just does not attract enough people.

More land + not on one of the coasts + hot/humid as hell + lack of natural beauty + lack of regional planning committees/meaningful zoning + sprawl + conservatives not giving a crap about the cities here as long as taxes low = not so desireable

Yet it is the very cheapness of this state that will ensure that it keeps pace with more desireable (but expensive) places like Florida and California as one of the largest states in the US.

Honestly, if New York is Nordstrom's and California is Lord&Taylor, Texas is Wal-Mart (and actually, the patrons of those stores remarkably resemble the citizens of each state). And its because we are Wal-Mart that people will keep moving here (because hey, its dang cheap!)

 

[GeneGoddess]

Actually, property taxes around Houston are more like 3-4%. Trust me...I just sold my place there. Part of the reason for the high cost is land, part is demand. My sis lives 20mi from DC and her house is currently worth over half a million. The same house in Houston would be anywhere from $120-250K, depending on the area. Even though Houston is the fourth largest city in the US (behind NY, LA, and Chicago), there is a LOT of land. The other three cities are bordered by water...and Galveston is 60+mi away. People can live anywhere in the area and are able to pick and choose, which lowers the cost.

And Texas has no natural beauty? Ever landed a redfish at dawn in Galveston bay? Seen a the sun sparkle over an ice-storm in Midland (btw, the current occupant of the white house is NOT "from" Texas - he just spent time there). Hiked in Big Bend Nat. Park? Watched migrating birds land on North Padre? Or seen a sunset in the hill country while sipping hill country wine and eating local beef? Texas has plenty of natural beauty. All LA has is concrete, silicone, and a beach with big waves.

 

[GoPistons]

Sorry man... but I've only been to TX once... Houston at that... Houston is the ugliest city I have ever seen... on the freeways all you see is walmart... KFC... Taco Bell... McDonalds... there is absolutely no beauty whatsoever... most other cities and states in the country have trees next to their freeways and zoning rules that say you can't just build anything anywhere...

 

[EvoDevo]

Actually, property taxes around Houston are more like 3-4%. Trust me...I just sold my place there. Part of the reason for the high cost is land, part is demand. My sis lives 20mi from DC and her house is currently worth over half a million. The same house in Houston would be anywhere from $120-250K, depending on the area. Even though Houston is the fourth largest city in the US (behind NY, LA, and Chicago), there is a LOT of land. The other three cities are bordered by water...and Galveston is 60+mi away. People can live anywhere in the area and are able to pick and choose, which lowers the cost.

And Texas has no natural beauty? Ever landed a redfish at dawn in Galveston bay? Seen a the sun sparkle over an ice-storm in Midland (btw, the current occupant of the white house is NOT "from" Texas - he just spent time there). Hiked in Big Bend Nat. Park? Watched migrating birds land on North Padre? Or seen a sunset in the hill country while sipping hill country wine and eating local beef? Texas has plenty of natural beauty. All LA has is concrete, silicone, and a beach with big waves.

Congrats on selling the place.

and for those of you who've never seen the Texas' natural beauty....good. More for the rest of us.

 

[Fantasy Sports]

And Texas has no natural beauty? Ever landed a redfish at dawn in Galveston bay? Seen a the sun sparkle over an ice-storm in Midland (btw, the current occupant of the white house is NOT "from" Texas - he just spent time there). Hiked in Big Bend Nat. Park? Watched migrating birds land on North Padre? Or seen a sunset in the hill country while sipping hill country wine and eating local beef? Texas has plenty of natural beauty. All LA has is concrete, silicone, and a beach with big waves.

Actually, its kinda hard for me to see the sunset when a huge haze of smog is covering the tops of skyscrapers. Just like LA, but then again, comparing your city to LA is kind of like comparing your car to a Pinto. And if you havent been to any major Texas city, they are all huge concrete slabs with no natural treegrowth. Austin used to be the exception to this, but all the sprawl there has taken a lot of that away.

And have you been to Padre island recently? It was real nice when I was in middle school, but now its slowly being taken over by the same rowdy drunks.

Ultimately though, Texas will continue to grow as long as it is cheap... just like Wal-Mart. The problem is, well, does anyone want to spend a ton of time at Wal-Mart?

 

[GeneGoddess]

Umm, I'm a decendant of an original Texas land grant holder and lived there for 25 years in many different places around the state. I've been to every major city in Texas (except El Paso - though I've been all over the rest of West Texas) as well as the middle of nowhere. I was last on Padre in Apr 2004 and didn't see a soul (you have to walk AWAY from the bars, dude). Dallas is pretty nice when it comes to trees, though Austin is better. And the area around the Texas Med Center is quite forested. North/east Houston has many more trees than south/west because the land changes: less "East Texas Piney Woods" and more "Coastal Topography". Keep in mind, though, that central and west Texas are not naturally forested either.

 

[Sessamoid]

And Texas has no natural beauty? Ever landed a redfish at dawn in Galveston bay?

Yeah, I did my four years in Galveston. It's a pit.

Hiked in Big Bend Nat. Park?

Yup, it's nice, but it's not even in the same magnitude of glory as Yosemite for example.

All LA has is concrete, silicone, and a beach with big waves.

Obviously spoken by somebody who's never spent much time there. It's got plusses and minuses, but the southern California coast is one of the most beautiful places in the world.

Another reason that California real estate is so much more expensive is a much higher proportion of insanely wealthy people. All the rich people bid up the prices of homes far more than you could see in Texas. Ask anybody who has home shopped in San Francisco the meaning of the term "love letter" in real estate lingo.

 

[TiggidyTooth]

Yeah, I did my four years in Galveston. It's a pit.


Yup, it's nice, but it's not even in the same magnitude of glory as Yosemite for example.


Obviously spoken by somebody who's never spent much time there. It's got plusses and minuses, but the southern California coast is one of the most beautiful places in the world.

Another reason that California real estate is so much more expensive is a much higher proportion of insanely wealthy people. All the rich people bid up the prices of homes far more than you could see in Texas. Ask anybody who has home shopped in San Francisco the meaning of the term "love letter" in real estate lingo.

I used to live in southern california and I certainly wouldnt call the coast some of the most beautiful sights in the world. Maybe if I never left the continent. I've lived in Houston for 2 years and let me be the first to reiterate what has already been commented on...this town is a DUMP! Galveston has the ugliest beaches ever. The only reason I would rate LA above houston is LA's culture and its unsurmountable night life. LA is a wild town, although it can get a little too "Hollywood" at times it certainly is fun. Though, in houston you can buy a 4,000 sqft house for less than 150k.

Tooth

 

[Finally M3]

Sorry man... but I've only been to TX once... Houston at that... Houston is the ugliest city I have ever seen... on the freeways all you see is walmart... KFC... Taco Bell... McDonalds... there is absolutely no beauty whatsoever... most other cities and states in the country have trees next to their freeways and zoning rules that say you can't just build anything anywhere...

Um. You're making a generalization from visiting a place once? Very informed of you

Ironic, from your sig, since I'm assuming you're from SE Michigan. We're also pretty sprawled out too, if you haven't noticed.

 

[docdoc]

I'm always amazed when people are talking about the beauty of a particular area and it turns out that they are actually talking about how attractive the huge cities are in that area are. All cities are ugly, its like saying my turd is prettier than yours.

 

[doc05]

I'm always amazed when people are talking about the beauty of a particular area and it turns out that they are actually talking about how attractive the huge cities are in that area are. All cities are ugly, its like saying my turd is prettier than yours.

Not so. SF, Boston, and NY are very nice-looking cities. So are San Diego and Miami. Seattle isn't bad either.

 

[makesomerheum]

I have lived near LA for undergrad and now live in Houston for medical school. I would place CA well above TX in beauty. Whoever tries to convince me that the fishing at sunset on the Gulf is equivalent to the Pacific has been out in the TX heat a little too long. When standing on a TX pier, you must look out and not down at the water or else the floating beer cans will ruin your "enjoyment" of the TX beauty. I grew up in TX, and the biased view of Texans for their state happens because Texans do not leave TX. They live, vacation, and die here. I kind of feel bad for those who never left and know of nothing better. I came back only for the in-state tuition at an amazing medical school and plan on leaving after 3 more years. Real estate actually is not cheap in the medical center area. A 1 bedroom condo will run 100k. I know this is much lower than CA prices but is high for TX. TX is cheaper because of space. Houston continues to expand outward. Everyone wants a piece of the CA coast and there is only so much real estate to go around.

 

[Fantasy Sports]

I have lived near LA for undergrad and now live in Houston for medical school. I would place CA well above TX in beauty. Whoever tries to convince me that the fishing at sunset on the Gulf is equivalent to the Pacific has been out in the TX heat a little too long. When standing on a TX pier, you must look out and not down at the water or else the floating beer cans will ruin your "enjoyment" of the TX beauty. I grew up in TX, and the biased view of Texans for their state happens because Texans do not leave TX. They live, vacation, and die here. I kind of feel bad for those who never left and know of nothing better. I came back only for the in-state tuition at an amazing medical school and plan on leaving after 3 more years. Real estate actually is not cheap in the medical center area. A 1 bedroom condo will run 100k. I know this is much lower than CA prices but is high for TX. TX is cheaper because of space. Houston continues to expand outward. Everyone wants a piece of the CA coast and there is only so much real estate to go around.

You seem to have the same view of TX that I do. And my comment about Texas being Wal-Mart is not meant as an insult as much as it is a good analogy. I myself have chosen to remain here for undergrad and medical school because it is such a good deal.

But I do feel that you get what you pay for, and thats why real estate in TX cities is so much cheaper than Seattle, Portland, Cali, Phoenix, Chicago, Atlanta, Florida, NY, Boston.

Unfortunately, it feels as if people from Texas talk big game about our state being so great, but unfortunately don't put their money where their mouth is. So while everything here is cheap, we don't end up paying to improve our schools, build mass transit, and diversify from a state built on energy and oil. In many ways, TX could learn a lot from a city like Miami or Atlanta or Tampa which has transformed itself over the past few decades from a laughingstock of crime and poverty into modern desireable cities by investing in themselves rather than just constantly looking for ways not to spend money on infrastructure.

But as long as Texas remains a bastion of cheapness, real-estate will always be cheap, since people with lots of money who would drive up real estate would rather spend that money on more desireable locales.

 

[timtye78]

The answer to the original question is more complicated than can be addressed well enough on a little posting board.
Being from Texas, and since I recently just got back from Las Vegas (who says you can't have fun during intern year!), I have a comment or two for you.

To my fellow Texans :It is very foolish to come on so strong about the natural beauty of Texas and the Texas 'coast.' It is nothing compared to the beauty of the West Coast.

Why is Texas so relatively cheap? Where are the jobs that pay $75 million per picture to people like Tom Cruise? Where are movie premeirs happening? Where do you think people like George Lucas are living (NINE BILLION off Star Wars merchandising alone) If you have money like that, how much more would you be able to bid compared to others to have access to areas like Hollywood, Malibu, LA, San Diego etc. Not to mention nightlife, music, dining, world class medicine, airports etc.

What is happening in Texas? wow cingular has a mega call center in Dallas. whoa. Houston has oil drillers/refineries..hmm and traffic. Cattle ranchers accross central Texas. yawn. Nothing in West Texas at all. (Tex Tech Univ doesn't count as a 'draw'.) San Antonio-lets try another Mexican restuarant! or lets get on that little boat and float down a river that floats through old downtown. Let travel in Texas--omg there is construction mess all over the major highways. Very few toll roads available.

The only place in Texas that I think is special is the area around Austin. Clean air, deer, clean lakes, growth, expansion, etc. There is a nice local 'flavor' and there is a lot going on in Austin. Otherwise, I am not real excited about settling down in TX.

 

[doc05]

Real estate actually is not cheap in the medical center area. A 1 bedroom condo will run 100k.

100k is incredibly cheap. a small 1-bdr condo in NY easily runs 300-400k.

 

[Fantasy Sports]

100k is incredibly cheap. a small 1-bdr condo in NY easily runs 300-400k.

I think what people in TX mean is that a small condo (1 bedroom) in the med center is like 125k, but a small house (2 bedroom, 2 bath) in Pearland is like 150k. So a condo is relatively expensive in TMC because a house is just so darn cheap here.

 

[makesomerheum]

100k is incredibly cheap. a small 1-bdr condo in NY easily runs 300-400k.

Relatively speaking, 100k is a lot in TX. In Houston, if you move outside the loop, 100k buys you twice as much.

Anybody know how a PGY-1 in CA with a family lives on a resident's salary?
In TX, many people buy, but I would think it would be tight even to rent a 2 bedroom (to fit kids) in LA, SD, or SF.

 

[Sessamoid]

Anybody know how a PGY-1 in CA with a family lives on a resident's salary?
In TX, many people buy, but I would think it would be tight even to rent a 2 bedroom (to fit kids) in LA, SD, or SF.

It's not easy, but it's not impossible. After all, lots of other families live in California on what residents make or less. You won't have the kind of spending money you would if you did your residency elsewhere though.

 

[doc05]

Anybody know how a PGY-1 in CA with a family lives on a resident's salary? In TX, many people buy, but I would think it would be tight even to rent a 2 bedroom (to fit kids) in LA, SD, or SF.

You would need to encourage your spouse to get a job if possible. Sometimes lack of $$ may require delaying having kids for a couple years.

If you expect to support a family of 3-4 on one (the resident's) salary, I would recommend you stay away from high-priced cities (like SF, NY, etc), since you'll be living like a pauper in those places.

 

[ophtho1122]

My wife is in Real Estate in Houston. If anyone is interested in inner loop townhomes in the Houston area, let me know. BTW, housing is only cheap in Houston outside the loop, where the traffic is terrible. In my neighborhood, 3,500-5,000 sq ft houses go from 1 mill to 10 mill. Townhomes from 300k-800k.

Check out www.har.com
or www.hhnhomes.com

 

[makesomerheum]

It's not easy, but it's not impossible. After all, lots of other families live in California on what residents make or less. You won't have the kind of spending money you would if you did your residency elsewhere though.

Sessamoid, are you presently a resident in CA?

 

[Sessamoid]

Sessamoid, are you presently a resident in CA?

Nope. Been out of residency for a while now. I did my residency in the least expensive city in Texas.

 

[Fantasy Sports]

My wife is in Real Estate in Houston. If anyone is interested in inner loop townhomes in the Houston area, let me know. BTW, housing is only cheap in Houston outside the loop, where the traffic is terrible. In my neighborhood, 3,500-5,000 sq ft houses go from 1 mill to 10 mill. Townhomes from 300k-800k.

Check out www.har.com
or www.hhnhomes.com

That's probably an outlier neighborhood (River Oaks, Memorial) that most residents and new doctors wouldn't even be looking at anyway.

You can live inside or 5 minutes outside the loop and get a 2 bed/2 bath home for 200k or less readily in Houston. You won't be blinging it up with the Huxtables, but you can live in a nice middle class neighborhood.

 

[roja]

San Antonio-lets try another Mexican restuarant! or lets get on that little boat and float down a river that floats through old downtown.

Or watch the Spurs become the NBA champs again.

Being a texan and living in a prime real estate area (manhatten, UWS) I can say that there is good and bad about almost EVERY place.

So all of those on rampant high horse rages about how great or how sucky a place is should seriously chill. Insulting where someone lives is rude and crass. Maybe its just not for you. *shrug*

Find a place you like and enjoy it. don't like texas? great. don't live there. Love texas? great. live there.

Nothing in life is perfect and what is one persons paradise is another's hell.

 

[Jeff698]

Nope. Been out of residency for a while now. I did my residency in the least expensive city in Texas.

Wow, I didn't realize Cut n' Shoot, TX had a hospital, much less an EM program.

Take care,
Jeff <- just moved from one cheap TX city to another

 

[Gut Shot]

I think the answer is much more complicated than that. The supply of housing available to rent/buy would have a more direct impact on home pricing. The home prices in Houston and other Texas coastal cities are amazingly low. It just does not attract enough people.

Houston is a classic example of urban/suburban rippling. Around the time of the last oil bust, the interior of the city (inside the 610 loop) became a veritable wasteland. Everyone who could moved outwards, giving rise to the satellite villas of Sugarland, Pearland, Katy, etc.

Then people got tired of commuting, and renewal development started up inside the loop. Housing prices have adjusted accordingly. About the only place near the Texas Med Center that a single resident can afford to buy these days is in "Condoland." The prices in West University, in particular, have gone through the ceiling over the past few years.