Temperance and Caution: How the Montevideo Industry Is Reacting to the Trump Earthquake

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In a 2025 marked by Donald Trump‘s frenetic political and media activity, portfolio diversification is no longer the doctrine of the model investor but a matter of survival. Without rushing or overreacting, Montevideo firms are considering how to strengthen their portfolios while making some moves.

AIVA: High-Quality Fixed Income and Caution with Emerging Markets

Analysts at AIVA Asset Management* point out that the Biden administration also imposed tariffs, albeit more quietly, and that Trump’s first term taught us that making noise is a key strategy for the current U.S. president.

Volatility in the coming years is a certainty, and Carmela Hernández, Investment Specialist at AIVA Asset Management, highlights that fixed income continues to offer attractive opportunities in high-quality, medium-duration bonds, providing stability and protection against fluctuations.

In equities, the U.S. and Europe still present opportunities, with sectors that could benefit from the anticipated economic policies. However, while selective opportunities exist in emerging markets, caution is essential, as these markets may face greater challenges due to potential trade retaliation and adjustments to global growth.

Nobilis: Diversifying Beyond the U.S.

Looking at history and valuations is crucial in these times. Nobilis analysts note the optimism among U.S. investors and question how long the S&P 500 can keep rising.

Mauricio Tchilingirbachian, Commercial Manager at Nobilis, suggests preparing portfolios with a global and diversified industry approach, avoiding overconcentration in the U.S. and technology sector, even though this segment has yielded the best returns over the past decade.

“Additionally, given the increased correlation between bonds and stocks in recent years and concerns about a potential high-inflation and high-interest-rate scenario impacting corporate earnings, we see value in diversifying portfolios by incorporating private alternative assets, such as private debt, which offer better returns than high-yield bonds and are less volatile than investment-grade bonds,” Tchilingirbachian adds.

The Time for Alternative Assets – Gastón Bengochea

In 2025, alternative asset investment is gaining traction in the Montevideo market, which has traditionally been cautious in this segment.

Diego Rodríguez, from Gastón Bengochea, summarizes the shift in the firm’s portfolios:

“We have been adding mid and small caps in the U.S., as we believe conditions are favorable for strong performance, at least in the early years of Trump’s presidency. We continue to increase bond exposure, favoring seven-year duration bonds, and are beginning to incorporate more private debt alternative assets.”

Vinci Compass Favors U.S. and Latin American Equities

Vinci Compass maintains a constructive risk stance in asset allocation, with a slight overweight in equities, favoring the U.S. and Latin America, the latter supported by a favorable commodities environment. In fixed income, they remain underweight, holding cash positions amid persistent volatility.

Renzo Nuzzachi, CFA, Head of Intermediaries Latam, explains that in equities, they favor global strategies with a core bias:

“The core bias in equities helps avoid overexposure to a single factor in a context of high valuations and amid potential market leadership shifts, such as the DeepSeek event.”

In fixed income, Vinci Compass prefers flexible strategies in both asset types and duration:

“Being flexible in fixed income is crucial, as spreads are at historic lows. Strategies that can navigate between different fixed-income segments will have better chances of strong performance. Likewise, being flexible in duration is key, as interest rate volatility is likely to persist throughout the year. The market is still adjusting its expectations regarding growth, the deficit, and inflation following the new U.S. government’s measures,” concludes Nuzzachi.

PUENTE Prioritizes High-Quality Segments

At PUENTE, analysts also note strong valuations in U.S. equities.

Nicolás Cristiani, Head of Wealth Management for the Punta del Este office, believes this is the time to be selective, prioritizing high-quality segments in the equity market:

“In fixed income, attractive entry points have emerged given the high interest rates, especially in short- and medium-duration bonds, to mitigate price volatility. Additionally, alternative investments could be a suitable option, with a focus on private credit and private equity, leveraging macroeconomic stability, long-term potential, lower volatility, and attractive expected returns.”

BECON IM: Between Trump’s Bluff and a Necessary Reflection

“We believe Trump’s tariffs are more of a negotiation tactic than a revenue-generating effort. However, there is more than enough uncertainty around them to make investors reflect,” says BECON IM.

The Rio de la Plata-based firm remains long-term constructive on U.S. growth and summarizes its portfolio strategy as follows:

“Maintaining calm during volatility is essential to capitalize on opportunities in both fixed income—where we overweight short-duration bonds, emerging markets, ABS/CMBS, private debt, and multi-sector strategies—and equities, where we favor small caps (at historically attractive levels), value stocks, and real estate.”

Buda Partners: Hedged Assets and a Focus on Emerging Markets

For Buda Partners analysts Guillermo Davies and Paula Bujía, the greatest risk is that inflationary pressures could be high enough for the Fed not only to abandon rate cuts but also for the market to start pricing in rate hikes.

“While this is not our base scenario, its probability is not insignificant,” they note.

“At Buda, we recommend a medium duration in fixed income (3x-4x) and have maintained exposure for over a year to naturally inflation-hedged assets, such as energy stocks and gold. We also favor diversification outside the U.S., prioritizing emerging markets and core global funds with exposure to Europe and Asia.”

LATAM ConsultUs: Applying Common Sense

LATAM ConsultUs recommends flexibility, diversification, and hedging mechanisms—and, above all, a healthy dose of common sense, which they say is “the least common of senses,” in the face of market volatility.

“While Trump’s tariff announcements triggered immediate market reactions, the long-term fundamentals of many companies remain unchanged. This highlights the difference between short-term noise and the factors that truly affect an investment’s value.

That’s why, before reacting to market movements, we ask: Does this event fundamentally change the companies or assets I’m invested in? Often, the answer is no. Keeping your focus on the long-term value of your investments helps avoid costly emotional decisions,” says Deborah Amatti.

How to Stay Calm and Disciplined in a Volatile Environment: Focus of Vanguard’s Presentation in Houston

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Photo courtesyIgnacio Saralegui, Head of Portfolio Solutions for Latin America

Vanguard will explore how financial advisors can play a crucial role in helping their clients stay calm and disciplined through behavioral coaching during its presentation at the V Funds Society Investment Summit in Houston.

The event, set to take place on March 6 at the Hyatt Regency Houston Galleria, is designed for professional investors from Texas and California engaged in the US Offshore business. The presentation, titled “Staying the Course,” will be led by Ignacio Saralegui, Head of Portfolio Solutions for Latin America at Vanguard.

“In the world of investments, maintaining discipline is essential for achieving long-term financial success. However, in a volatile and uncertain market environment, it is easy to be driven by emotions and make impulsive decisions that can negatively impact results,” said the firm in a statement. Founded in 1975 in the United States, Vanguard now has a presence in Europe, Australia, and Asia, in addition to the Americas.

Based on research conducted by Vanguard, Saralegui will highlight strategies and practices that have proven effective in maximizing market opportunities. The firm will also present “relevant statistics that underscore the added value advisors can offer their clients.”

Ignacio Saralegui

The speaker at the Houston event joined Vanguard in 2017 and was previously part of the Outsourced Chief Investment Officer (OCIO) team, where he managed investment portfolios for endowments, foundations, and pension plans. Before joining Vanguard, he spent ten years at Willis Towers Watson, advising institutional investors on all aspects of portfolio construction, implementation, and risk management.

Academically, he holds a Bachelor of Science in Accounting from Old Dominion University and a Master of Science in Risk Management from the New York University Stern School of Business. He also holds the FINRA Series 7 license.

Álvaro Catao and Jaime De Bettio Join Safra in Aventura

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LinkedIn

Safra National Bank’s International Private Banking has added Álvaro Catao and Jaime Fernando De Bettio as Directors, the bank announced on its official LinkedIn profile. The office is located in Aventura, Florida.

Mr. Catao and Mr. De Bettio bring extensive private banking experience and will focus on serving the Brazilian market,” the entity added. Both professionals had joined StoneX together in May 2023 and were also Vice Presidents of Wealth Management at UBS, always in Miami.

“I am delighted to announce that I have joined the International Private Banking team at Safra National Bank of NY in Aventura, Florida, as a Director,” Catao wrote on his LinkedIn account. “We are excited about the opportunity to work at a first-class institution, truly global and with strong roots in Brazil,” he added.

For his part, De Bettio also wrote on his LinkedIn profile: “We are eager to take on new challenges and contribute to our clients, colleagues, and friends!”

Álvaro Catao has more than 35 years of experience: he worked at Lehman Brothers (1987-1992), Ibolsa (2000-2003), Pactual Capital Corporation (2003-2006), J.P. Morgan (2010-2015), and UBS (2016-2023), until he joined StoneX along with De Bettio, according to his Finra profile.

Jaime De Bettio first worked in Brazil and arrived in Miami in 2010 to join Morgan Stanley, where he served as Associate Director between 2013 and 2018. He later joined UBS, where he held the position of Vice President of Wealth Management until 2023, when he was recruited by StoneX.

Héctor Contreras Joins Morgan Stanley’s Century Club

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LinkedIn

Héctor Contreras, an international client advisor at Morgan Stanley, has joined the firm’s Century Club, as announced by Contreras, who is based in Houston, in a post on his LinkedIn profile.

“I am very proud to announce that I have been named a member of the prestigious Century Club of Morgan Stanley, an exclusive group of the firm’s financial advisors,” Contreras wrote on the professional networking platform. “I appreciate this recognition of my dedication to providing first-class service to my clients,” he added. Less than a month ago, he was promoted to Senior Vice President at the investment bank, where he has worked since 2014.

The Century Club of Morgan Stanley is an exclusive group of financial advisors. To become a member, advisors must meet certain criteria for performance, conduct, compliance, revenue, experience, and assets under supervision.

Before joining Morgan Stanley, Contreras—a graduate of the Instituto Tecnológico y de Estudios Superiores de Monterrey—worked as an advisor at Citi, Chase, and Merrill Lynch.

Arturo Montemayor Joins HSBC in Miami From Merrill Lynch

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LinkedIn

HSBC has added 30 years of experience to its wealth management business with the addition of Arturo Montemayor.

The advisor, who was registered in BrokerCheck on February 4, joins from Merrill Lynch, where he had been working since September 2021.

Montemayor, a well-known figure in Miami’s industry, has worked at major banks throughout his career.

He began his career at Citi in 1984 for the Mexico office, initially in corporate banking and real estate before moving into private banking. In 2005, he joined Deutsche Bank in Geneva and later in Miami, according to his LinkedIn profile.

He then held positions at the wirehouses Morgan Stanley and JP Morgan, alternating between Miami and New York while working with Latin American clients.

He is an industrial engineer and holds an MBA from the Instituto Tecnológico Autónomo de México.

Generative AI Will Boost Banks’ Financial Performance in 2025

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DeepSeek y su impacto en tecnológicas
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The adoption of generative artificial intelligence in the banking sector will experience exponential growth, according to the IBM Institute for Business Value 2025 Outlook for Banking and Financial Markets.

In 2024, 8% of banks systematically developed the technology, while 78% used it tactically. Additionally, the report indicates that more institutions are moving from pilot projects to broader execution strategies. This includes the implementation of agentic AI to improve operational efficiency and customer experience.

Furthermore, banking convergence continues to be a key factor in financial performance, the report adds. The restructuring of business models and processes will be crucial in distinguishing the most competitive banks from the rest.

In this context, 60% of surveyed CEOs believe that accepting a certain level of risk is necessary to leverage the benefits of automation and strengthen their market position.

Another key aspect highlighted in the report is the evolution of customer behavior. More than 16% of consumers globally are already comfortable with fully digital banks that have no physical branches. However, competition is shifting toward higher-value services, such as embedded finance and advisory services for high-net-worth clients and small and medium-sized enterprises (SMEs).

The report also includes an analysis of industry leaders’ sentiment, customer behavior, and economic data from eight key markets: the United States, Canada, the European Union, the United Kingdom, Japan, China, and India. The findings will help financial institutions and their ecosystem partners anticipate the trends shaping the future of the sector.

For more information and access to the full report, please visit the following link.

Private Equity Made Accessible to the Wealth Industry

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The rise of the open-ended private equity “PE” fund, colloquially referred to as evergreens, has allowed retail investors who meet certain wealth or income thresholds to access what used to be an asset class that was exclusively available for institutions or very wealthy families. Although the technology is rather new, so far the results have not disappointed. 

Most, if not all private equity and venture funds are structured as drawdown vehicles. These types of structures are very long-term oriented, their typical life is 10 to 15 years, and are only open to qualified purchasers (individuals with +$5 million in investable assets). Besides, they do not typically offer redemption or liquidity features whereas the penalties to withdraw from such -if at all contemplated- can be severe. 

For new PE investors, ramping up and reaching allocation targets with these types of vehicles is also complicated and takes extensive time as a typical PE fund calls in average about 20% of investor capital commitments on a yearly basis. Besides liquidity, the other great risk these vehicles pose is underperformance and/or poor management, which is a particularly concerning factor given investors are typically locked up for the duration of the partnership and can’t turn into cash like in a periodic liquidity fund. 

Drawdown structures however are the preferred vehicle for private equity partnerships and there are clear reasons as to why. Mainly, it takes time and resources for private equity funds to find the right targets to acquire and months to negotiate and close on a deal. Thus, investors are better off keeping the cash in their own accounts -and potentially invested in something else- while the GP finds good opportunities to buy into

Private Equity though has grown and evolved since its inception about 50 years ago. It is still a young industry that nowadays plays a very large role in the US economy and touches cash-flow positive companies of all shapes and sizes, from a business installing roofs in South Florida to those with global presence worth billions of dollars.

Today, even though PE funds universally employ the drawdown structure, two byproducts of the primary PE industry have grown into their own ecosystems: co-investments and secondaries. Co-investments supply pools of passive equity to top-off the capital needed to complete a fund acquisition. These opportunities exist because of hard-capped fund sizes and diversification rules. Secondaries on the other hand facilitate liquidity to fund partners, “LP’s”. For example, an investor with a portfolio of mature drawdown funds could seek to sell his partnership interests through a specialized secondaries broker, typically at a discount from NAV. 

The evolution of the perpetual fund.

Some of the first perpetual private equity funds actually experimented with committing into drawdown funds and keeping cash invested in money market instruments while capital was called on the commitments. However, the cash drag on these instruments was significant, diluting the returns that the underlying funds would have achieved on their own. 

The evolution and growth in volume of secondaries and co-investment opportunities has allowed institutional private equity allocators to buy into pools of PE-operated assets, making them suitable for perpetual fund of funds “FoFs” that are continuously raising capital and looking to deploy in parallel. Just for readers to have an idea of sizes, according to Evercore, the secondaries industry has gone from trading $26 Billion annually 10 years ago to a projected $140 billion in 2024. 

Setting up open-ended funds requires having relations with dozens if not hundreds of PE funds that may be offering co-investment opportunities and a solid network of secondary brokers to find LP interests at the best discounts possible. Only a limited number of allocators have built the network of providers to access a robust pipeline of “buy” opportunities into high quality assets without risking cash drag or being pushed into lesser quality ones due to a lack of better options.

The formula is also being employed by some of the largest private asset managers in the world. Such firms nowadays have developed multiple strategies that cover different regions (North America, Asia, Europe, Growth, etc) and sectors (Health, SAAS, etc) and their significant deal count on a yearly basis allows for their own proprietary perpetual funds to co-invest alongside the main drawdowns of the firm and grow AUM in unison. These initiatives are still in their early stages but so far have been successful at raising large amounts of capital, particularly from the domestic US RIA channel, in part because of the established names promoting them. 

Does retail mean lesser performance or quality?

The Private equity industry and its institutional allocators setting up FoFs seem to finally have “cracked the code” to the open-ended PE fund with the evolution of secondaries and co-investments and the diversification of strategies within the largest PE firms. The technology is here to stay and we will see wider implementation. 

Investors with no PE exposure can now tap into very diversified pools of high-quality assets through one single fund, whereas in the past, investors would have had to commit to drawdown vehicles on a fund by fund basis, running the risk of poor performance and no exit avenues. Besides, investors in open-ended funds become immediately invested and are beneficiaries on day one to the performance of underlying assets. 

That is not to say that sophisticated and large investors should avoid drawdowns funds altogether, particularly if given the opportunity to invest into a great manager with a top quartile or decile record. The Venture Capital “VC” industry, for instance, which is also exploring how to tap wealth management money, is way behind private equity in creating open-ended funds. Investors seeking to start an allocation to VC would mostly be limited to accessing drawdown vehicles. Having said this, combining the two types of funds may be a good fit for qualifying investors and a great way to achieve high performing private asset allocations on day one.

Economic Strength, Monetary Policy, and Disinflation: Three Arguments in Favor of Emerging Markets

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Mercados emergentes y fortalezas económicas

The new Donald Trump administration brings uncertainty to emerging markets. However, investment firms believe it is essential to look beyond this and remember that these regions have stronger markets and that the Federal Reserve‘s monetary policy continues to favor risk assets.

According to Kirstie Spence, portfolio manager at Capital Group, many of the major emerging markets can leverage various tools: higher reserve volumes, positive real interest rates with room to decline, fewer imbalances than developed markets, and exchange rates that are fairly valued or undervalued.

“They have policy flexibility to weather the storm if needed. Except for the less consolidated economies, external balances are solid. Additionally, inflation is trending downward in a restrictive monetary policy environment. Fiscal indicators are often a weak point for these markets, but most major emerging markets have extended their debt maturity profile and are now issuing more in local currency,” argues Spence.

She also notes that a Federal Reserve less inclined to cut rates could put pressure on central banks in less developed emerging economies, making it difficult for them to maintain higher interest rates, especially in countries concerned about inflation and financial stability risks. “In more developed emerging markets, particularly in the Asian region, central banks have shown greater confidence in getting ahead of the Federal Reserve, given the absence of systemic pressures on financial systems and the development of deeper, more liquid domestic markets,” she adds.

According to Claudia Calich, Global Head of Emerging Debt at M&G, it is interesting to analyze that the disinflation story in emerging markets is practically complete, with few exceptions in high-inflation countries such as Argentina, Turkey, Egypt, and Nigeria. “It is remarkable how poorly Latin America performed in 2024, affected by both currency depreciation and rising yields. There is much less room for rate cuts, given the expected inflation path in most inflation-targeting economies. However, there is potential for a yield rebound if country-specific concerns ease, such as improved fiscal prospects in Brazil or greater clarity on trade between the U.S. and Mexico, and if currencies stabilize or recover some of the depreciation seen in 2024,” says Calich.

Implications for Investors

Given this backdrop, asset managers are looking for investment opportunities in emerging markets, with debt being one of the most analyzed areas. According to M&G’s expert, local currency bonds in emerging markets remain underappreciated, which could be a good signal for contrarian investors willing to step in and endure some volatility. “However, high short-term interest rates in key markets like the U.S., U.K., and, to a lesser extent, the Eurozone, remain a hurdle for this asset class, and global macroeconomic uncertainty doesn’t help. Local currency bonds in emerging markets still face strong competition from high short-term rates in the U.S., U.K., and Eurozone. This could improve in the future as central banks continue easing, but the risk of ‘higher for longer’ rates remains, especially if U.S. inflation expectations deteriorate due to tariffs,” she explains.

Additionally, M&G acknowledges that they remain selectively constructive on emerging market currencies, as their valuations have become even more attractive after last year’s sell-off. “However, timing the right moment to act is complex, as the fate of the U.S. dollar will largely depend on the policy mix adopted by the new administration,” Calich notes.

The Heavyweights

When discussing investment opportunities, Chris Thomsen, portfolio manager at Capital Group, highlights two “heavyweights”: India and China. In his view, both emerging markets have followed very different trajectories over the past five years, with Indian equities significantly outperforming Chinese equities.

“Valuations reflect these differences. While both markets offer attractive opportunities, they come with their own risks and investment drivers. The increasing penetration of mobile phones among India’s young and vast population has benefited telecom companies like Bharti Airtel, but the high valuation levels make selectivity crucial,” explains Thomsen.

On the other hand, he points out that China’s massive domestic consumer market could be boosted by government stimulus measures, creating opportunities for well-positioned digital companies. “Some companies like Tencent and NetEase hold dominant positions, have strong cash flows, and high-quality management teams. However, investing in China remains risky due to ongoing tensions with the U.S. and the trade priorities of the new Trump administration,” says the Capital Group manager, adding that the reconfiguration of global supply chains presents opportunities in Brazil, Mexico, and Indonesia.

The Industry Will Increase Its allocation to Venture Capital, Private Multi-Asset Solutions and Infrastructure

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Inversión en capital de riesgo y activos privados
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The increasing allocation to private markets in response to market evolution by wealth managers and financial advisors is a clear trend in the industry. In fact, according to the Global Investor Insights Survey (GIIS) by Schroders, more than half of these professionals are currently investing in private markets, with an additional 20% expecting to do so within the next two years.

The survey, which includes 1,755 wealth managers and financial advisors globally—representing $12.1 trillion in assets—reveals that private equity (53%), private multi-asset solutions (47%), and renewable infrastructure equity (46%) are the top three private market asset classes where advisors and wealth managers expect their clients to increase allocations in the next 1-2 years.

Regarding how they expect client allocations to private market asset classes to change over the next 1-2 years, two-thirds of wealth managers and financial advisors highlight the potential for higher returns compared to public markets as the primary benefit of private market investing for their clients. This was closely followed by the ability to achieve diversification through different return drivers (62%). Additionally, on average, most investor allocations to private markets represent between 5%-10% or 1%-5% of their total portfolio exposure.

 

According to Carla Bergareche, Global Head of Wealth Management at Schroders’ Client Group, while many wealth managers and financial advisors are already investing in private markets on behalf of their clients, allocation sizes remain significantly lower than the 20% or more seen in family office and institutional investor portfolios.

“This gap represents a significant opportunity to strengthen client engagement with private markets. We therefore expect these markets to play an increasingly important role in wealth investment portfolios as investors become more aware of the potential for strong and diversified returns,” explains Bergareche.

Access to Private Market Investments

Another key finding is that just over half of surveyed wealth managers and advisors indicated that they access private market opportunities through exchange-traded funds, closely followed by semi-liquid or open-ended indefinite-duration funds (51%). Despite these opportunities, lack of liquidity is cited as the main challenge when discussing private markets with clients.

According to Schroders, 49% of respondents stated that greater financial education for clients would help drive demand, followed by better-suited product structures (42%) and lower investment minimums (42%).

“There is no doubt that private wealth will play a very significant role in private markets in the future. Until now, wealth managers and advisors have had limited options to access these markets compared to their institutional counterparts, which explains why, despite their intent, we still see relatively low allocations,” says Tim Boole, Head of Private Equity Product Management at Schroders Capital.

However, in his experience, the emergence of new vehicles, such as semi-liquid funds, has expanded available access points, representing a significant advancement in providing greater flexibility for investors to achieve their financial goals through private markets. “It’s no surprise that these structures are favored by this client segment,” Boole adds.

Wealth Transfer as a Key Priority

Additionally, the firm highlights that wealth transfer has been identified as a priority for 59% of wealth managers and financial advisors worldwide. In North America, 66% consider it a priority, compared to 57% in the UK, 57% in Asia-Pacific, and 58% in EMEA.

The report shows that wealth transfer discussions are more deeply embedded in the Americas. Specifically, Latin America has the highest level of engagement globally, with 58% of advisors stating they have addressed this topic with more than half of their clients. In EMEA and Asia-Pacific, participation is lower, with 43% and 46% of advisors engaging in these discussions, primarily due to cultural sensitivities.

Why Texas Continues to Attract New Residents and Businesses?

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Texas continues to be one of the fastest-growing states in the U.S., driven by migration, economic growth, and a vibrant housing market. Realtor.com’s new report displays why people and businesses are moving to Texas

Over one in four home shoppers in Texas are from out of state, with the largest groups coming in from California and international sources. The state’s economic expansion, specifically in technology, manufacturing, and construction, has created a strong job market that attracts newcomers seeking employment and lower living costs. 

“In the years since the COVID-19 pandemic, the Texas economy has boomed, especially in high-demand industries like technology, education, manufacturing, and construction,” said Danielle Hale, chief economist at Realtor.com

Texas has also become a leader in new home construction, accounting for 15% of the nation’s new housing permits in 2024. The state has focused on building smaller, more affordable homes, helping ease the housing shortage. While new homes in Texas are slightly smaller than a few years ago, the share of homes priced below $350,000 has risen, making homeownership more attainable. 

Despite rising prices, Texas remains more affordable than the national average. As of December 2024, the median listing price in Texas was $360,000 – about $40,000 lower than the national median. Nearly half of homes for sale in Texas were priced at $350,000 or less, compared to 40.1% nationwide. However, there is still a gap in affordability for lower-income households, with only 17% of homes affordable to those earning less than $75,000 annually. 

Texas also stands out for its affordable rental market. In 2024, Austin and San Antonio ranked among the top 10 rental markets, with Austin becoming a hotspot for recent college graduates due to its combination of affordable rents and job opportunities. 

“By showcasing solutions from states like Texas and calling attention to those that are falling behind, we can drive a national conversation that leads to real, meaningful change,” said Damian Eales, CEO at Realtor.com

While San Antonio has the highest share of homes priced under $350,000, Austin remains the least affordable major metro. Despite challenges, Texas offers a more affordable housing market than many other regions. 

The report highlights Texas’ ongoing growth and its challenges in balancing demand with affordability. As migration to the state continues, the housing market will likely evolve in response to these dynamics.