Cities of Texas and their real estate potential

By Ciprian Morariu Published: December 20, 2023

Many factors come into mind when we start exploring the best city in Texas for real estate agents. This is because understanding which city is best for practicing real estate agents comes with a lot of conditions and elements that impact the quality of practice. Moving forward in the article, you will find several cities that provide a conducive environment for the growth of real estate and its agents.

Texas Real Estate Agent
  1. Austin: In terms of rapid population growth and a thriving market Austin is the city to be in. Here, the demand for housing has been consistently high which makes it an attractive market for real estate agents. Coupling it with a strong economy and vibrant cultural scenery, this city is popular among them.
  2. Houston: when we think of the largest city in the United States, Euston is one of them. If you talk about diversity in the state market which is dynamic as well as growing Houston's real estate market takes the first spot. There is a huge demand for both commercial and residential properties and the energy sector plays a very significant role in the city's economy. 
  3. Dallas: in Dallas finance, technology, and healthcare make up the biggest part of the major economic hub. Much to its delight, the cities, business-friendly environment, and state policies majorly contribute to positive real estate activity. This is why many investors and real estate professionals love to be a part of its industry.
  4. San Antonio: among most of the cities of Texas, San Antonio is majorly known for its rich, cultural heritage and historical sites. As compared to other cities, San Antonio has a relatively stable real estate market. Where is a study for housing and city has good affordability and job opportunities. Therefore, all these factors favorably impact the real estate landscape.
  5. Fort Worth: The city has a strong and stable economy with a focus on industries like aviation, manufacturing, and healthcare. You will again find a balanced mixture of both residential and commercial opportunities to deal in. Fort Worth is a growing economic hub and is attracting a lot of investor activity in Real estate.

Target these places to work in as they are among the best places to be a real estate agent in Texas.

You must evaluate certain factors such as job growth, affordability of the city market stability of the cities, population trends, and past real estate landscape before you decide to invest in their economy.  Let's learn about them in the next segment.

What then are the primary factors that will help you decide whether a city is the ideal place to work in as a real estate agent? 

  1. Choose a high-growth real estate market that is home to investors, renters, and sellers. Cities with low employment rates have people with money to spare to invest in real estate.  
  2. Select a city for your real estate business that has a high population growth. You will have more clients looking to buy and sell properties. 
  3. The best cities to ply your trade are ones that offer affordable housing. It leads to increased demand for housing to the benefit of real estate agents.
  4. Good infrastructure and quality of life. 

Cities with high quality of life, entertainment channels, recreation facilities, and good roads and infrastructure draw people who want to be permanent residents. They look for housing, whether it is to buy or rent. Real estate agents are in demand here as new residents look up to them to find the perfect place to live.    

Potential earnings for real estate agents in Texas

The amount of potential earnings for a real estate agent anywhere in any state in the United States very widely depending upon many factors. These factors usually include the agent's experience his location of practice, his specialization, and overall real estate market conditions in the area of his practice. Let us discuss them in detail:

  1. Years of experience: It is rightly said that your experience always counts. So even with years of experience real estate agents naturally on higher incomes due to the established networks, reputation, and expertise. As compared to experienced professionals, beginners initially earn less, but if they build their client base correctly, they will also on handsomely over some time.
  2. Location: Another important factor in deciding the agents, potential earnings is the location and the city. For example, Dallas, Austin, Houston, and San Antonio or major metros metropolitan cities of Texas. They naturally offer higher earning potential because the property values and transaction volumes are high here as compared to other cities, which may not offer such a high earning potential for you as an agent.
  3. Specialization: Some agents specialize in a niche. These may include specializing in commercial real estate-specific neighborhoods or luxury properties. So it depends on your area of specialization which will impact your earning potential. So the above-mentioned will fetch you higher income as compared to other specializations such as residential housing or senior citizen real estate designs. 
  4. Brokerage: Agents, earnings are also associated with the broker. They are associated with some brokerages offering higher commission splits and additional bonuses for high-performing agents, whereas others do not.

Now this brings us to the next segment: 

What are the commission rates for real estate agents in different cities in Texas?

Real estate agents earn anything between 5% to 6% of the sale price as commission on a real estate deal. However, it is a crucial point to note that these commission rates are negotiable and can vary based on certain factors such as the specific services offered by real estate agents or brokers and an understanding between the agent and the client and the local market, they are dealing in.

After knowing that, it is safe to say that in Texas, this commission is divided between the agents of the buyer and the seller equally which is usually 3% to each.

Real Estate Agent in Texas

Let us look at different commission structures followed in different Texas cities and how much potential Texas City real estate agents earn as commissions. 

  1. Houston: in Euston, the national average for commission rates involves 5% to 6% commission. This is a standard commission rate that is followed nationally and also
  2. Dallas: just like Euston in the Dallas Fort Worth Metroplex the standard commission rates are generally in line with the national average, which is again 5% to 6%.
  3. Austin: Austin is one city where the real estate market is very competitive. Therefore, the commission rates here are also very competitive and may vary. Four. It is also not very uncommon here for agents to negotiate commissions raised based on specific circumstances of individual transactions.
  4. San Antonio: here also they follow a standardized commission rate which is followed nationally which is 5% to 6% however, you can on an individual level, negotiate the final commission structure with your broker.

How many real estate agents in Texas are there? 

As nothing stays static, the number of Texas City real estate agents also changes over time due to factors such as licensing, renewals, new entries into the profession, and the Agency leaving the industry.

Keeping that consideration in mind according to the latest update in January 2023, there are about 148,242 real estate agents in Texas out of which 120,353 are Texas realtors. It is heartbreaking to know that there is a trend that shows the number of Texas real estate agents is falling every quarter. 

However, Texas boasts about being the third state with the largest real estate agent population only after California with 202,970 agents, and Florida with 218,906 agents.

The maximum strength of Texas real estate agents is found in Euston with a count of 7,290 as it is also the biggest city in the state.

The ratio of real estate agents to population state-wide

According to a survey conducted by the National Association of Realtors report, the ratio of real estate agents to population was published considering Texas. According to the report, there are 312 people for every Realtor in Texas. 

The biggest players here or West Virginia with 617 people for one realtor Mississippi with 552 people for one realtor and Hawaii at the lowest with 156. People for one realtor. 

Comparisons of agents per capita in major cities

Texas is one of the fastest-growing states in the USA, and hence now is the time for real estate agents to get a Texas real estate license and get into business. Just for better understanding and comparisons of agents, per capita income in major cities of Texas. Let us get into each of them individually.

How much you would make in Austin?

As per records available till October 2022, real estate agents in Austin earn about $89,000 annually. 

How much would you make in Houston?

Houston is the fourth largest city in the US and real estate agents typically earn about $91,000 per year. 

How much would you make in San Antonio?

In San Antonio, one of the booming cities in the country, salespersons in Texas earn about $92,000 per year. 

How much would you make in Dallas?

Dallas offers a lot of real estate opportunities to salespersons and hence it will be a wise decision to practice there. The typical commissions in the city for agents is around $88,000 per year. which also interestingly matches the national average

All in all, Texas with its booming economy, population, and job opportunities is the perfect and safest haven for real estate professionals to start their career in.