A business-friendly climate with relaxed construction regulations and lower labor costs, in addition to a favorable tax structure with no state income tax and lower property taxes, contributes to making Texas housing more affordable.

The median home price in Texas as of October 2023 was $342,400, according to Redfin data. However, prices vary greatly depending on which part of the Texas housing market you're looking in. For instance, the median price in Lubbock was just $245,000, while in buzzy Austin, it was a much higher $545,000.

"Higher mortgage rates deterred some buyers in 2023, but even so, the overall median price of homes in Texas saw only a slight decline, 1.4 percent, compared to 2022, with the majority of metro areas seeing slight median price increases.

Another reason why more people are buying homes in Texas is because of the low cost of living. The cost of houses, in particular, is lower compared to many other states in the nation. Besides, Texas has no state income tax, enabling homeowners to pay less and borrow more.