Housing Bottom in Texas. Dallas historically supports Price to Income ratio of 1.9. Dallas 2006 bubble top Price to Income ratio was 2.3. Dallas Housing bottom 2015 target - 15% price drop from 2006 bubble top price. Austin historically supports Price to Income ratio of 2.1. Austin 2006 bubble top Price to Income ratio was 2.5. Austin Housing bottom 2015 target - 15% price drop from 2006 bubble top price. San Antonio historically supports Price to Income ratio of 2.4. San Antonio 2006 bubble top Price to Income ratio was 2.7. San Antonio Housing bottom 2015 target - 10% price drop from 2006 bubble top price. Houston historically supports Price to Income ratio of 1.9. Houston 2006 bubble top Price to Income ratio was 2.5. Houston Housing bottom 2015 target - 25% price drop from 2006 bubble top price. Housing Bottom in Texas. Information for California "investors". If you are a California "investor" thinking about investing in some "cheap" $200,000 condos in Dallas, Austin, San Antonio, or Houston, here is some math for you to ponder over. $200,000 condo you are thinking about buying was $75,000 in 2002. Property taxes on $200,000 condo in Texas will be $7,000/year (3.5%). Association fees on the condo will be $3,000/year. Maintenance and other misc costs will add up to another $2,000/year. $200,000 can earn you $10,000/year in guaranteed income at 5% a year. You give up this potential guaranteed income by investing in a condo. Your taxes, costs and interest income you give up total $22,000/year. Rent you'll be able to get in Texas is $800/month - say $10,000/year (downtown condos that rent for $1,500/month cost $500,000, not $200,000). So each year you'll be losing $12,000 on your Texas condo "investment". The condo will be worth $75,000 again in a few years (that's what non-investor condo buyers in Texas can afford on their $30,000/year income). So you'll take a $125,000 loss after you sell the condo on top of your $12,000 annual losses. Happy Texas Real Estate investing.

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