Texas, the land of wide open spaces, had long been known for its abundant supply of cheap land. But that might be changing.
Economic growth and an influx of new residents are pushing up the price of land in the Lone Star State, according to research published this week by the Texas A&M Real Estate Center. As a result, land costs are accounting for an increasingly larger share of the price of a home here, while remaining low compared to the U.S. as a whole.
Statewide, 20.4 percent of the cost of a typical single-family home went to the land in 2016, up from 5 percent in 2011, the research shows. In Houston, the share rose to 25.1 percent in 2016 from 7.1 percent in 2011, the steepest incline among other large Texas markets.
The median price of a home in Texas rose from $138,000 at the begin...Read More