You need to know the Waco Texas real estate market trends before you invest in a property in that area. According to the Emerging House Markets Index from the Wall Street Journal, Waco is considered one of the top 20 emerging real estate markets in the United States. And that says a lot since the index uses many notable metrics such as economic vitality, quality of life, overall housing market activity, and anticipated price growth.
Waco is a city in Texas located between Austin and Dallas. One of the reasons the real estate market in Waco is promising is because it is very strategic. You will only need to drive less than three hours from Waco to Houston and San Antonio. However, that is not the only reason why this city attracts investors.
Waco is home to more than 270,000 residents in its metropolitan area. Based on data from the United States Census Bureau, Waco has seen a growth in population by almost 11% since 2010. You will find this city in East Central Texas alongside the Brazos River.
The Waco Texas real estate market today is quite impressive. You will see in many statistics that properties in Waco are quick to sell. These homes only stay on the housing market for a few days. They even usually sell above asking prices. The sale price growth is also pretty incredible, where you can see a 22% rise year-over-year for single-family homes. Moreover, the transaction volumes in the real estate market have increased by almost 9%.
One of the reasons why Waco real estate is growing pretty quickly is because of its diverse economy. In the metropolitan area, this city has many industry sectors. These industry sectors include aerospace and defense, health care, advanced manufacturing, and supply chain management. And because of how diverse the economy is, Amazon even announced that it is working its way to Waco. On top of that, SpaceX is also planning to open a second facility in this city.
To help you learn more about the real estate trends in Waco, we will tell you everything there is to know about this city. With the information we provide, you can determine whether or not Waco is the best place for you to invest. Some key factors you should learn about include its population and growth, housing statistics, cost of living, and many more.
Waco TX Real Estate Population and Growth
The first key factor you should consider is the population and growth in Waco, Texas. According to the recent census report from the United States Census Bureau, the growth rate of the human population in Waco is nearly 11%. In the data, you will find 25,673 new residents of the area based on that census. And even though the population growth in this city is not as significant as in other urban areas, the population growth in Waco is still very notable.
You will find almost 138,500 residents in the city of Waco. Out of those residents, 270,868 people live in the metropolitan area of this city. The annual population growth in Waco is approximately 0.96%, which is quite impressive. And lastly, the per capita income of the population in the metropolitan area of Waco is around $25,448, whereas the median household income is around $50,368.
Waco Texas Real Estate Market Trends: Housing and Rent Price
Now that you know all about the population growth in Waco, you should also learn more about the housing and renting market in this city. You might be planning on buying a property in Waco for a variety of purposes. You might even think about renting a property in the city while you wait until you can afford to buy. Whatever purpose you have, knowing the housing and renting prices should be your priority.
Based on the Housing Reports for Waco by the Texas Real Estate Research Center of Texas A&M University, single-family homes in Waco averagely sell in only 63 days. The average days-on-market for single-family homes even declines by 23% each year. The average price for this type of home in this city has increased by an astonishing 22.39%.
As of November 2021, the Zillow Home Value Index for the city of Waco is $195,369. Over the past five years, home values in this city have increased by 76% with an impressive 25.5% increase in just last year. You will also find in a recent report from Realtor.com that the median list price of a house in Waco is approximately $239,000.
A couple of other interesting facts about the houses in Waco TX are its median listing price per square foot, popular neighborhoods, and median listing home prices based on area. In Waco, the median listing price per square foot of a house is $144. You will find many popular neighborhoods in this city, including North Lake Waco, Landon Branch, and Mountainview. The median listing prices in those popular neighborhoods are around $274,900 to $284,900.
Highway 84 West is the most expensive neighborhood in Waco, with a median listing price of $428,000. On the other end of this list is Carver, which is the most affordable neighborhood in Waco. The median listing home price for this area is around $115,000.
While the housing market in Waco might not be as impressive as you expect, the renting market is quite the opposite. Waco has a very strong renting market thanks to the rising home prices in this city. Based on the Emerging Housing Market Index by Realtor.com and Wall Street Journal, Waco ranked number 18. Only two quarters ago, this city ranked number 44 in the same index, which shows a huge leap.
The impressive leap is all thanks to the many people who are working from home. On top of that, the economy in Waco is stable enough to drive the current housing demand in this city. If you are planning to rent a 3-bedroom home in Waco, you can expect to spend approximately $1,400.
One of the most interesting things about the renting price in Waco is the fact that it has increased by as many as 17% each year. Single-family homes make up 73% of all of the housing units in the Waco real estate market. Aside from that, almost 54% of the 111,836 housing units in Waco are already occupied by renters. And that is what you need to know about the renting price of the Waco Texas real estate market trends.
Real Estate Waco TX Cost of Living
Another important factor you should consider before you start moving to Waco is its cost of living. Fortunately for you, living in Waco is very affordable. Although this city looks like a metropolitan, you will not have to spend money like you are living in a big metropolitan city.
According to many indices from a variety of sources, the living cost in Waco is below the living cost in the United States in general. The overall living cost in this city is 15% below the living cost in the United States. The cost of groceries, housing, transportation, utilities, health, and many other things are also cheaper than the average cost in the United States.
Waco Texas Real Estate Market Trends: Historic Price
Like in any other city in the United State, Waco has also seen changes in its housing price. The home price index of this city in 2016 is 165.9. The index rises to 279.5 in 2021. As you can analyze from this number, the housing trend in the Waco real estate market is growing pretty well.
Another thing you should know is the house price appreciation in five years. The 5-year house price appreciation in Waco is approximately 68.5%, whereas the yearly change in home prices reaches 23.8%. You will also see a 1.7% monthly change in Waco’s home prices.
Aside from the housing price, you should also consider the affordability index in the area. The affordability index allows you to compare the income of the household compared to the home values. That way, you will be able to determine whether or not housing in Waco is affordable.
Based on the recent data from the Texas Gazetteer, the housing affordability index of this city is 133. When you look at a housing affordability index, you need to use 100 as a base point. This is a point where people with a median household income can purchase a median price home. If the affordability index of a city is greater than 100, you can safely say that the homes in that city are affordable. So, in conclusion, housing in Waco is still very affordable.
Real Estate in Waco TX Quality of Life
So, now you know that housing in Waco is quite affordable. However, how is the quality of life in this city? While affordable housing is a very important factor, you should never forget about the quality of life. If you are thinking about moving to Waco, you should be pretty certain that you can live there comfortably.
One of the best things about Waco is the fact that it has all of the advantages of a big city that you can think of. And because the metropolitan area only consists of 270,000 people, you will not have to face any of the big city hassles that you will normally find in other big cities. So, you will be able to enjoy the facilities of a big city without having to face heavy traffic, high cost of living, or long commutes.
People who live in Waco can easily enjoy many activities in the city. Because this city generally has good weather, you will be able to enjoy many outdoor activities. You will also find many opportunities for year-round recreation. If you are a fan of outdoor exercises, you can easily enjoy the many popular sports venues in the city, including popular bike trails, hike trails, and even Little League baseball.
Because Waco is very close to the Brazos River, you can easily visit this place to do several activities. You can either walk or jog on the trails available on both sides of the river. Lastly, you will also be able to enjoy a day at the Lake Waco Reservoir. This place has many picnic areas, a lovely cross-country running track, and playgrounds for your little ones.
Waco Texas Real Estate Market Forecast
By now, you have probably learned all there is to know about the city of Waco. As you probably already know, the real estate market in this city is very promising. Waco can be a wonderful place for you to spend with your family or to invest in property. However, will the market stay promising for the next couple of years?
Based on the most recent data from Realtor.com, the average housing price in Waco is $250,000 as of May 2022. In June 2021, the median listing home price is $189,900. As you can see, the price is rising quite gradually. The price trend of the real estate market in this city is always going up. And the year-by-year increase is around 15.7%.
Based on the data served above, you can see that the price will only go up from now on. However, you do not have to worry about the median listing price going up significantly. Since the population growth in this city is not explosive, you should not worry about the sudden increase in housing demand and price.
The Pros and Cons of Living in Waco
Lastly, you should know the pros and cons of living in Waco, Texas. Waco is a very comfortable city you can live in. The pros of living in this city include its low living costs, friendly neighborhood, and natural surroundings. You will be able to live a slow life in this city.
However, every great city has its cons. The downside of living in Waco is the fact that you might experience hot and humid summers. You will also face allergens all year round, which is not great if you have allergies. Lastly, you will not be able to easily find a regional airport. And that is everything you need to know about the Waco real estate market trends.