15 Texas Cities You Should Never Buy Property In

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Texas has always been a magnet for newcomers. It’s easy to understand why people are flocking to the Lone Star State: its diverse culture, growing job markets and warm weather. Underneath it all, the cowboy charm and sprawling ranchland, there are cities with red flags that could turn your property dreams into a nightmare. Yes, they might sound like a great idea on the surface, but not all Texas towns are worth it for real estate investments.

Let’s have a closer look at 15 cities where buying property may not be worth the trouble it’s going to be.

Austin

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If Austin is the hipster darling of Texas, that doesn’t make it a wise investment. Home prices in the city have skyrocketed astronomically, and it’s now one of the least affordable cities in Texas. According to a report from Statista, Austin’s median home price is more than $450,000, far higher than the state average. Add to that rising property taxes and a hot housing market, and Austin might be one place where you’ll have more buyer’s remorse than live music memories.

Houston

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While Houston’s energy sector is the engine of the city’s economy, its housing market is far from stable. Insurance premiums in Houston can be a wallet buster, given frequent flooding and hurricanes. And in some areas, it’s so flood prone that rebuilding is a constant threat. SO, it’s not just about the price of the home, it’s about whether the home will still be standing after a storm.

Brownsville

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Brownsville is close to the Gulf of Mexico, and it might have a sort of charm, but economically speaking, it is a bad place to invest property. It has one of the worst poverty rates in the state and not many job opportunities. And because the local economy is not stable, property values here often remain stagnant, leaving investors in the lurch.

Waco

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Waco is famous for its TV makeovers, but beyond the fixer–upper magic, it’s a city with anemic economic growth, and wildly fluctuating real estate values. Though certain shows have temporarily increased a property’s popularity and tourism, this has not translated into a consistently steady increase in property value.

Amarillo

Wide open spaces are what make Amarillo what it is but the real estate market here is far from rosy. There has been little population growth in the city, and it depends on industries that tend to decline economically, such as agriculture and energy. Slow property appreciation is characteristic of these factors that fails to lure buyers.

Odessa

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According to the Texas Real Estate Research Center, the real estate market in Odessa is completely tied to the oil industry. Booms can be lucrative but busts can leave you underwater — figuratively speaking. Oil prices fluctuation creates an unstable market for housing in Odessa, which renders the city a gambling for property investors.

Killeen

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Killeen is close to Fort Hood, which brings a transient population that makes it hard for property values to increase. The housing market has never been consistent here due to many residents moving in and out with military transfers. Also, rates of crime in certain areas of the city make for another thing to worry about.

Beaumont

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The Beaumont of Louisiana borders Louisiana with frequent hurricanes and flooding. It is situated on a high risk area and so also has higher insurance costs and possible out of pocket expense for damage. Combined with a slow economy, these challenges make Beaumont an unattractive place for homebuyers.

Corpus Christi

Corpus Christi has its fair share of problems, but it sure is beautiful with its coastal views. It’s a risky investment because of hurricanes, high insurance premiums and a struggling job market. Sunny view does not necessarily equal to sunny returns.

El Paso

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Low wages and low economic growth are causing El Paso’s real estate market to suffer. The city is more affordable than the larger Texas cities but its lack of upward economic mobility makes property values stagnate. Elsewhere your money might work harder for you.

Harlingen

Affordability is what Harlingen often boasts, but what you save on home prices may cost you in the long term investment value. Property appreciation is hampered by the sluggish nature of the city’s economy, limited job opportunities, and low wages.

San Angelo

San Angelo does have a small town charm, but the economy is agriculture and oil dependent. Property investments in this area can be notoriously unstable, as these industries are also unstable.

Abilene

Abilene has several universities but the town has limited economic diversity. The local economy isn’t commanding much confidence and the job market is very limited, which is not inspiring much growth in the property value.

Laredo

Laredo is a border city with a low income population and limited economic opportunities. This is a bustling trade hub, but that hasn’t yet translated into a strong housing market. Here, property values are often stagnant, making it a less than ideal investment.

Texarkana

Texarkana is split between Texas and Arkansas, providing affordable options but nothing else for the property investor. The city suffers with a declining population, little job growth, and a housing market that doesn’t promise much appreciation for people looking to rent or buy a home.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.