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Given its close proximity to both San Antonio and Austin, the city has become popular with transplants both from Texas and from out of state. Chris Westrom, senior general manager for Opendoor in San Antonio, said New Braunfels' access to big-city amenities while still having natural spots to explore helped propel it to the top of the list.

The region's housing market continues to attract attention nationwide. Zillow Group Inc. Austin, which took the top spot last year, dropped to No. Westrom said he expects suburban areas with larger, newer and affordable homes will continue to be popular.