The best Texas Triangle real estate markets in the US for 2024

Real estate in the Texas Triangle is magnetic, according to the Urban Land Institute.

Austin has the fifth-best real estate market in the country heading into 2024, the Austin Business Journal reported, citing ULI's Emerging Trends in Real Estate study, which gathered data and insights from more than 2,000 industry experts to analyze market changes and make forecasts for the year the nearest

Austin's ranking, down from third place last year, reflects the city's status as a "magnet city", attracting people and companies alike. Over the past few years, Austin has seen significant investments from large corporations, such as Tesla and Samsung, which have attracted significant businesses to the area.

The city's industrial sector is booming, with 17 million square feet of industrial space under construction in the third quarter of 2023. Although that's down 19% year-over-year, there's still a whopping 124 million square feet of industrial inventory across the metropolis.

Austin's population increased from 790,390 in 2010 to an estimated 974,447 in July 2022, according to the US Census Bureau. Suburbs like Georgetown, Linder and Liberty Hill also experienced explosive growth, contributing to the metro's industrial market.

Austin's office sector, like many cities, is still struggling in a post-pandemic world. Telecommuting trends, high interest rates and a tough lending environment have led to a record number of office vacancies, with the downtown area at the epicenter of these challenges. Several recently constructed office towers in downtown Austin are completely empty. 

While downtown office occupancy levels will not return to pre-pandemic heights, foot traffic and overall activity are on the rise. Visits to downtown Austin are now at 73 percent of their 2019 levels, compared to a national average of 74 percent, the network reported, citing data from the University of Toronto's School of Cities and the Institute for Government Studies at UC Berkeley.

Other major Texas markets also have a bright outlook for 2024. Dallas-Fort Worth ranked third on the ULI list, while San Antonio and Houston ranked eighth and 11th, respectively. Like Austin, all these cities have been called "magnets".