8 Texas Cities That Could Be Poised For a Housing Crisis

It’s no secret that the U.S. housing market is currently suffering. As of the past several years it’s been a struggle to afford a house for many citizens, regardless of where they live.

As the second-largest state in the U.S., Texas is feeling the preemptive sting of a potential housing crisis. Peppered throughout the huge state are individual cities that already resemble the negative trends of a potential crisis on the horizon.

Using data gathered from the Consumer Financial Protection Bureau and the 2020 American Community Survey, GOBankingRates found exactly which cities in Texas could be next in line for a major housing crisis.

• Total housing units: 72,328
• % of mortgages 30-89 days delinquent: 2.1%
• % of mortgages 90+ days delinquent: 1.1%
• % of homes for sale that are/have been foreclosures: 49.07%
• Homeowner vacancy rate: 1.1%

• Total housing units: 874,827
• % of mortgages 30-89 days delinquent: 0.9%
• % of mortgages 90+ days delinquent: 0.6%
• % of homes for sale that are/have been foreclosures: 73.98%
• Homeowner vacancy rate: 1.9%

• Total housing units: 54,840
• % of mortgages 30-89 days delinquent: 0.8%
• % of mortgages 90+ days delinquent: 0.7%
• % of homes for sale that are/have been foreclosures: 11.90%
• Homeowner vacancy rate: 3.9%

• Total housing units: 230,905
• % of mortgages 30-89 days delinquent: 1.1%
• % of mortgages 90+ days delinquent: 0.6%
• % of homes for sale that are/have been foreclosures: 19.48%
• Homeowner vacancy rate: 1.1%

• Total housing units: 117,789
• % of mortgages 30-89 days delinquent: 1.3%
• % of mortgages 90+ days delinquent: 0.6%
• % of homes for sale that are/have been foreclosures: 12.51%
• Homeowner vacancy rate: 1.5%

• Total housing units: 53,506
• % of mortgages 30-89 days delinquent: 1.2%
• % of mortgages 90+ days delinquent: 0.6%
• % of homes for sale that are/have been foreclosures: 24.58%
• Homeowner vacancy rate: 1.2%

• Total housing units: 76,778
• % of mortgages 30-89 days delinquent: 1.0%
• % of mortgages 90+ days delinquent: 0.6%
• % of homes for sale that are/have been foreclosures: 4.44%
• Homeowner vacancy rate: 2.1%

• Total housing units: 50,108
• % of mortgages 30-89 days delinquent: 1.0%
• % of mortgages 90+ days delinquent: 0.7%
• % of homes for sale that are/have been foreclosures: 9.17%
• Homeowner vacancy rate: 1.1%

Methodology: In order to find the Texas cities that could be poised for a housing crisis, GOBankingRates looked at the largest 200 cities in terms of total housing units across the following factors: (1) percent of mortgages 30-89 days delinquent by MSA as sourced from the Consumer Financial Protection Bureau; (2) percent of mortgages 90-plus days delinquent by MSA as sourced from the Consumer Protection Bureau; (3) homeowner vacancy rate as sourced from the 2020 American Community Survey; and (4) rental vacancy rate as sourced from the 2020 American Community Survey. These four factors were then scored and combined with the highest score indicating the city most likely to be poised for a housing crisis. Factors (1) and (2) were weighted 2x and factor (4) was weighted 0.5x. The 100 cities most poised for a housing crisis were moved onto the next round of scoring. These 100 cities were then re-ranked and scored on the four factors above as well as (5) foreclosure rate as sourced from RealtyTrac. These five factors were scored and combined with the highest score indicating the city most likely to be poised for a housing crisis. For this second round of scoring, factors (1) and (2) were weighted 2x, factor (4) was weighted 0.5x, and factor (5) was weighted 1.5x. GOBankingRates then isolated those 10 cities in the Texas with the highest scores for final rankings. All data was collected on and up to date as of May 23, 2022 and rankings were finalized on Nov. 8, 2022.