Key Takeaways:

• Amarillo’s housing market could see a 15–20% increase in homebuyer activity due to potential tax reforms.

• Interest rates may rise by 0.25–0.5%, affecting affordability but keeping Amarillo below the national mortgage average.

• Amarillo’s population is projected to grow by 5% annually, increasing demand for housing.

• Custom-built homes could see a surge of 30% more interest as families look for tailored living spaces.

Introduction

Presidential policies have far-reaching effects on the housing market, and Donald Trump’s inauguration is no exception. Amarillo, Texas—a city known for its affordability and quality of life—could experience a range of changes as new policies roll out.

From tax reforms potentially saving middle-income families thousands to population growth driving up housing demand, let’s dive into the numbers to understand what’s next for Amarillo’s real estate market.

Trump’s Economic Policies and Amarillo Real Estate

Tax Reforms: Boosting Home Affordability

Trump’s proposed tax cuts aim to reduce federal income taxes by an average of 7%, leaving more disposable income in the pockets of Amarillo’s residents. For a household earning $75,000 annually, this means an additional $5,250 per year, which could go toward down payments, closing costs, or home upgrades.

This financial boost could lead to a 15–20% rise in first-time homebuyer activity, particularly in Amarillo, where the median home price is $189,000, significantly lower than the national average.

Interest Rates: A Balancing Act

While tax reforms are promising, potential Federal Reserve interest rate hikes could increase mortgage rates by 0.25–0.5%. For Amarillo homebuyers, this translates to an extra $50–$100 per month on a $200,000 mortgage.

However, even with these increases, Amarillo’s housing market remains one of the most affordable in Texas. The city’s low property tax rate of 1.47% (compared to the Texas average of 1.81%) continues to attract buyers.

Job Growth: Fueling Housing Demand

Amarillo’s economy is set to benefit from Trump’s focus on job creation, particularly in the energy and manufacturing sectors. With unemployment in Amarillo already low at 3.2% (as of 2024), the addition of new jobs could push the city’s population growth to 5% annually over the next five years.

This growth could result in increased housing demand, particularly for single-family homes, which currently make up 72% of the housing inventory in Amarillo.

Why Amarillo Stands Out

Affordability at Its Core

Amarillo continues to shine as one of Texas’ most affordable cities. The cost of living is 18% below the national average, making it an attractive destination for families, retirees, and professionals.

For example:

• The average monthly mortgage payment in Amarillo is $1,200, compared to $2,400 in Austin or Dallas.

• Renters pay an average of $1,100 per month, making Amarillo a budget-friendly option for those not yet ready to buy.

Custom-Built Homes: A Rising Trend

1. Interest in custom-built homes has increased by 30% over the past three years, with buyers seeking energy-efficient designs and modern layouts. Builders in Amarillo report that 40% of new homebuyers now prefer custom options over pre-built homes.

   Custom-built homes offer long-term financial benefits, including lower utility bills (saving an average of $1,500 annually) and higher resale values (up to 20% more than traditional homes).

   Investment Opportunities in Amarillo

   Rental Properties: High ROI Potential

   With a growing population and steady demand for affordable housing, rental properties in Amarillo offer excellent returns. Investors can expect:

• 6–8% annual ROI on single-family rental homes.

• Increasing rental demand due to job growth and migration from larger cities.

Rent-to-Own Programs: Bridging the Gap

1. Rent-to-own programs have seen a 25% increase in participation as more families look for flexible paths to homeownership. These programs cater to those with limited savings or lower credit scores, helping them transition into homeownership within 3–5 years.

   Amarillo Housing Market Trends to Watch

1. Migration from Larger Cities
   Amarillo’s affordability is driving migration from high-cost areas like Austin and Dallas. Net migration to Amarillo has grown by 12% annually, with new residents citing lower housing costs and quality of life as top reasons.

2. Infrastructure Investments
   Texas is expected to spend $85 billion on infrastructure over the next decade, with Amarillo receiving a significant share for roadways, schools, and public services. These developments could further boost property values.

3. Energy-Efficient Homes
   Energy-efficient homes are gaining traction, with 35% of new builds in Amarillo now featuring eco-friendly designs. Buyers save an average of $120 per month on utility bills, making these homes a smart investment.

Conclusion: A Bright Future for Amarillo

The numbers don’t lie—Amarillo’s housing market is primed for growth under Trump’s administration. Whether you’re a first-time buyer, an investor, or looking for a custom-built home, Rent-to-own homes, the city offers unmatched value and opportunity.

With potential savings from tax reforms, steady job growth, and rising interest in sustainable living, now is the perfect time to explore Amarillo’s real estate market.