They say everything is bigger in Texas, and the real estate investment market is no exception.
For foreign investors, Texas offers a wealth of lucrative opportunities. As a prime destination for global real estate investors, the Lone Star State was also once its own country before joining the United States–this independent mentality can be seen by the single star on the state flag. It also means that in the past, even Americans would’ve been foreign investors here!
Texas boasts a booming economy, growing population, and no state income taxes. Whether you’re seeking steady rental income or long-term appreciation, here are the top Texas cities foreign investors should consider.
Austin got national attention during the Covid pandemic for the mass migration of Californians and businesses to Texas’ capitol city. Known as "Silicon Hills" for its thriving tech industry along with government sector and academic institution jobs. Austin is one of the fastest-growing cities in the U.S. With its vibrant culture, music scene, and innovative industries, the city continues to attract professionals. This combined with the presence of the University of Texas creates a strong demand for rental properties. The local rental market offers significantly higher-than-average rents, providing foreign investors with excellent cash flow opportunities.
As the largest city in Texas, Dallas offers a vibrant and diverse investment landscape. The Dallas-Fort Worth metroplex is an economic powerhouse with a booming population that exceeded 8 million residents in 2023. Dallas has seen a surge in demand for both residential and commercial properties. The city's central location, coupled with its world-class amenities and thriving business scene, make it an attractive option for investors seeking long-term growth.
Fort Worth, a neighboring city to Dallas, has emerged as a popular investment destination due to its affordability and strong job market. With a lower cost of living compared to Dallas, Fort Worth offers investors the opportunity to purchase properties at a more attractive price point. Fort Worth's population is on track to reach 1 million by 2025, fueling its growing economy. Combined with its rich history, vibrant cultural scene, and affordable cost of living, Fort Worth presents a compelling investment opportunity.
Houston is the fourth-largest city in the U.S, home to NASA, and a global leader in the energy industry. These factors make Houston an attractive place for foreign investors and renters alike. With a renter majority (58% of households), Houston's rental market is particularly strong, and property values are steadily appreciating. For foreign nationals interested in residential investment opportunities, Houston’s diversified economy makes it an excellent choice.
San Antonio is the third-fastest growing city in the United States. This is driven by its affordability and economic expansion. The city’s low rent-to-price ratio is a significant advantage for foreign nationals, allowing for favorable returns on investment. Additionally, San Antonio’s historical charm and booming tourism industry provide diverse real estate options.
With its proximity to the U.S.-Mexico border, El Paso serves as a key hub for trade and commerce, attracting a steady influx of workers and families. The city’s strong rental occupancy rate and affordable property prices present excellent opportunities for investors.
A booming suburb of Dallas, Frisco has gained attention as one of the fastest-growing cities in the U.S. The area is known for its high-quality schools, new infrastructure, a tech-driven job market, and the Dallas Cowboys headquarters. As Frisco continues to expand, property values are rising rapidly, making it a great choice for investors looking for high-end residential investments that are poised to grow even more lucrative.
Plano, another Dallas suburb, is home to several Fortune 500 companies, including PepsiCo, and boasts a strong job market, making it a magnet for professionals. The city offers a stable real estate market with strong rental demand, providing foreign investors with a solid opportunity to invest in residential properties with high appreciation potential.
For investors looking for a coastal market, Corpus Christi can be an excellent option. Known for its tourism and port industries, the city attracts renters and tourists alike. Its affordability and strong tourism-driven rental market make it a solid choice for rental investments. While property taxes in Nueces County are relatively high, rising rent prices help offset the additional costs, making it an exciting investment opportunity.
As a landlord, Texas is full of exciting real estate opportunities for foreign nationals. It offers everything from high-tech urban hubs to affordable coastal towns. With its welcoming attitude towards businesses, landlord friendly policies, and steady population growth, the Lone Star State is an ideal destination for those looking to invest in the U.S. real estate market. Curious about buying Texas investment property? Work with Waltz to get a rental property loan as foreign national.
All figures are accurate as of September 2024 and may change over time.* Sources for all city-related statistics:
Home price data: Zillow Housing Market
Rental price data: Zillow Rental Market Trends
Property tax data: Smart Asset Property Tax Calculator
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