Got $2 million and looking for a house? If you’re searching in California or Texas, your mileage may vary. So how does the Golden State compare to the Lone Star State?
You won’t be surprised to read that many of the country’s least affordable housing markets are in California, per figures from the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
Forbes’ 2022 California Housing Market Report shows Los Angeles and San Diego are the two most-in-demand real estate markets in the state, with median home prices of $945,000 and $826,000, respectively.
A four-bedroom, two-bathroom home in Studio City runs just $1 short of $2 million, according to one Zillow listing. The house features 2,019 square feet. Further out from LA, in Woodland Hills, a newly renovated 1965 mountain-view house goes for $1,999,900. The home boasts four bedrooms and four bathrooms within 3,007 feet.
Though real estate is more affordable in Texas than in California, homes aren’t cheap. Especially in the state’s capitol.
A current Zillow listing for a house on Lake Travis in Austin has a price tag of $1,925,000. For just south of $2 million, buyers get six bedrooms, five bathrooms and 6,197 square feet. The square footage is more than double than that of the Woodland Hills home. But the housing market in Austin isn’t totally representative of the entire state, as recent data from Florida Atlantic University and Florida International University ranked Austin the second most over-valued housing market in the U.S.
|Criteria (per Redfin data)||California||Texas|
|Median home price||$798,000||$421,895|
|Price per square foot||$486||$188|
Texas A&M University’s Texas Real Estate Research Center says other major Texas cities, like Dallas-Fort Worth, Houston and San Antonio, have median prices closer to $340,000 per home, as opposed to Austin’s $500,000 per home median.
Meanwhile, smaller cities outside of Austin, like Georgetown and Leander, are quickly becoming some of the hottest markets in the U.S., a recent U.S. Census Bureau report showed.
As you can likely guess, the cost of living in California is far higher than that of the Lone Star State. As of February, a Credit Karma study showed the Golden State is the second most expensive state to live in (only behind Hawaii). Texas, meanwhile, ranked at 26th.
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