Texas continues to be a hotbed for real estate growth, with four cities securing spots in the top five of a national boomtown ranking, according to a recent SmartAsset report. While Austin, once the state's premier boomtown, has seen its market cool significantly, its surrounding suburbs and other Texas cities are experiencing a surge in new residents.
The report analyzed over 400 U.S. cities with populations exceeding 65,000, examining changes in housing units, labor force size, and economic output over a five-year period. Factors contributing to this growth include a strong economy, consistent new home construction, expanding housing supply, and job market momentum.
Georgetown, located just 30 minutes from Austin, has emerged as America's leading boomtown. Between 2019 and 2024, the city saw its housing units increase by 34 percent and its labor force grow by the same margin. The median sale price for a home in Georgetown is approximately $430,000, with real GDP in Williamson County growing at a compound annual rate of 7.7 percent. Real estate professionals note that Georgetown offers an attractive alternative to Austin, providing more space and a different pace of life while maintaining access to major job markets.
New Braunfels, less than two hours from Georgetown, secured the second position. This city added 40 percent more housing units and saw its labor force grow by 32 percent over the five-year period. Comal County's real GDP increased at a compound annual rate of 6.8 percent. New Braunfels also boasts its own community appeal, including a waterpark and an annual German festival, in addition to its proximity to Austin.
Leander, ranking fourth, experienced the most significant increase in housing units among the top five, with a 48 percent jump. The city's labor force expanded by 25 percent, and county-level real GDP grew by 6.1 percent. Leander, described as 'business-friendly,' has seen its population grow, attracting residents with its natural attractions, strategic location, and economic opportunities, including ties to major tech companies.
Lewisville, north of Dallas, rounded out the top five. Situated near major transportation hubs, the city added 24 percent to its housing stock and expanded its labor force by 23 percent, with county-level GDP growing at 6.7 percent annually. The median home price in Lewisville is around $400,000.
While Texas cities dominate the ranking, Lehi, Utah, broke the pattern, placing third overall as the fastest-growing city outside of Texas. Lehi has seen a 39 percent increase in housing units and a substantial 67 percent increase in its labor force. It has become a significant technology and business hub, attracting major companies and nearly doubling its population since 2010.
In contrast, Austin's housing market, which saw a dramatic surge in median home prices from around $365,000 to over $450,000 between early and late 2021, experienced a rapid expansion of new housing units. This influx temporarily shifted the market in favor of renters, leading to more than two years of rent declines.