What's the deal with the Texas housing market? Why so cheap in nice areas? (Plano: homeowners insurance, how much)

[FLA17]

From the numbers I see on city-data and elsewhere, Texas has a great economic field. Residents of the woodlands make $110k a year but only pay an average of 200k for housing. In Spring they make 70k but only pay 160k for housing. In Plano, a city of 270k people, they make 85k a year and only pay 217k for homes. Is there something I'm missing here? Because the homes I've seen in these areas are amazing. Why are they so cheap in nice safe areas with a good economic climate?

[getmeoutofhere]

Because Texas isn't terribly limited in space. It has enormous sprawl. If you don't like how much a house costs, go 10 miles North. Of course, in 10 years it'll be crowded again.

[bluescreen73]

Mostly because Texas experienced a California-style statewide housing crash in the mid 1980s when the energy market shriveled up. Plus Texas isn't exactly a jetset destination like California and Las Vegas or a retirement mecca like Florida. Houses typically don't appreciate at unsustainable levels here.

[tstone]

3% property tax annually + some of the highest homeowners insurance rates in the nation balances out a low mortgage.

[jkozlow3]

Originally Posted by tstone

3% property tax annually

That's insane - state income tax or not! My state income tax and property tax combined in Colorado are probably only half of what a 3% property tax on the same house in TX would be!

[orbius]

The homeowners insurance is absurd and getting more absurd thanks to a State government more interested in kissing insurance companies rears than serving their citizens.
If your insurance has gone up a high % year on year for petes sake start writing your State reps and the governor and get enough pressure put on these people supposed to be representing us to force these insurance companies to justify their rates.

[getmeoutofhere]

It's rarely as high as 3%. Usually between 2% and 2.6%.

It balances out with no state income tax, though.

[Steel Man]

Originally Posted by tstone

3% property tax annually + some of the highest homeowners insurance rates in the nation balances out a low mortgage.

Maybe the higher property tax rate is helping to keep housing prices down.

BTW: How much do you consider homeowners insurance rate to be too high? I pay $600 with Allstate and I don't consider that to be too high.

BTW(2): My property tax rate is 2.15%.

[Poltracker]

Originally Posted by orbius

The homeowners insurance is absurd and getting more absurd thanks to a State government more interested in kissing insurance companies rears than serving their citizens.
If your insurance has gone up a high % year on year for petes sake start writing your State reps and the governor and get enough pressure put on these people supposed to be representing us to force these insurance companies to justify their rates.

If you live along the coast, it is even harder to get insurance because many companies have dropped insurance in the coastal region then you have to add in wind storm coverage and flood insurance. It can add up to quite a bit per month.

[loves2read]

and don't forget that commuting costs play a role into home prices and what people can afford

there is little public transportation in Tx--people love their cars just like our forefathers loved their horses--
since most TX towns are designed around suburban living--roads and cars are our legacy from OUR parents and what we are still passing along to our children--
the new projects getting funding in TX are just more of the same
no high speed rail projects to relieve interstates like 35 or 45
few counties/towns will cooperate long enough to design an INTER county mass transit system that will actually take cars off the road and be designed to be useable
turning our already funded state highways over to an organization like the NTTA is just making a private company a transit overlord that does not have to respond to voters--like the legislature is supposed to...