SmartAsset compared home value data for 400 metropolitan areas between 1998 and 2022 using data from the Federal Housing Administration and calculated cumulative increases during that time, as well as the frequency of significant drops in value to compile the list.
“The Austin-Round Rock-Georgetown metro area ranks No. 1 overall, thanks in large part to home values that have skyrocketed in the last 25 years,” the study said. “Between 1998 and 2022, home prices increased by 353.92%, the most cumulative growth in our study, without much downside.”
The nearly 354% increase was more than any other metro area in the nation, according to SmartAsset.
According to information from the study, home prices were not the only thing growing.
“The population has nearly doubled in the last 20 years, in part thanks to the presence of large tech companies — including Apple, Amazon and Tesla — supporting the local economy.”
The Austin metro area was not the only Texas metro area with a strong housing market. Five other metro areas in the Lone Star State ranked among the top 10 markets for growth and stability. Those areas included:
Midland at No. 2
The Midland metro area, located in West Texas, saw home prices rise 255.5% between 1998 and 2022, more than 91% of metro areas in the SmartAsset study.
“Local oil and gas reserves help support the local economy, including the recent discovery of one of the largest U.S. oil reserves,” SmartAsset said.
Odessa at No. 7
According to the study, on average, homes in Odessa had an increase in value of 226% from 1998 to 2022, though with more volatility than the rest of the top 10.
Dallas-Plano-Irving at No. 8
According to the study, as the third largest city in Texas by population, Dallas is home to large companies like AT&T and Southwest Airlines, and the ExxonMobil headquarters is in Irving.
“These large employers help attract workers and stabilize the local economy, partly contributing to the 213% increase in home values over the last 25 years,” SmartAsset said.
San Antonio-New Braunfels at No. 9
According to the study, San Antonio home prices have tripled since 1998.
“The population has steadily grown over the last two decades, though not at the same accelerated rate as housing prices,” SmartAsset said.
Houston-The Woodlands-Sugar Land at No. 10
According to SmartAsset, Houston home prices have increased more than 200% without much historical chance of losing value in the last 25 years.
Other Texas metro areas in the top 20 included:
- Waco at No. 13
- Fort Worth-Arlington-Grapevine at No. 14
- San Angelo at No. 15
- College Station-Bryan at No. 18
- Sherman-Denison at No. 19
- Abilene at No. 20
To rank the best and worst housing markets for growth and stability, SmartAsset said it looked at data for 400 metro areas and specifically compared them across two metrics:
- Stability — the incidence of homeowners experiencing a significant price decline (5% or more) at any point in the 10 years after they purchased a home
- Overall home price growth — the total growth in home prices during the analyzed time
SmartAsset said it looked at data for every quarter between 1998 and 2022 for both metrics.