With the national media focusing heavily on the negative markets highlighted by States such as California, Nevada and Florida, very little attention is being paid to the markets that are thriving and continuing to grow.With recently released data, it is evident that the Texas real estate market is not only thriving, but poised for considerable growth."Texas - Poised for a 21st Century Boom""So far, skyrocketing home prices common to fast-growing states like California and Florida have not occurred in Texas." says Dr. Jim Gaines, research economist for the Real Estate Center at Texas A&M University.
Gaines says housing affordability is just one card in a deck stacked in the state's favor. The other winning cards include lower cost of living, cost of business, greater employment opportunities and an appealing lifestyle. "Events and circumstances point toward a Texas-sized boom between 2005 and 2030", Gaines writes in the latest issue of Tierra Grande magazine, a periodical sent to all the state's real estate licensees."The state's population and economy -- as well as its housing and commercial real estate markets -- are poised to explode in volume and prices. Texas leads the nation in job creation. If Texas maintains its average employment-to-population ratio as expected during the next 25 years, the state will add another 4.5 to 5.8 million jobs", says Gaines. "Job growth is expected to be stimulated by overall U.S. economic growth and enhanced by Texas' employment-friendly characteristics. Texas is the most housing-affordable, high-growth state in the nation."
Accordingly, he presented the following data for what Texas currently has going for it:
• Population and economic growth
• Low cost, affordable labor
• Pro growth attitude
• Migration into state from elsewhere
• Attractive retirement areas
• Pressure on infrastructure, government sources, public finances
• Most affordable state for land, housing and overall cost of living
The Current Texas Real Estate MarketConsider the following...
• 4 major Texas cities were recently included in the Forbes Top 10 recession proof cities. These included San Antonio at #2, Austin at #3, Houston at #7 and Dallas at #10.
• Unemployment rates for all 4 cities have fallen across the state and job growth has increased in many cities (Austin, Dallas and Houston all showed an increase)
• Almost all Texas counties showed no decrease in house price. The majority of Texas counties showed an increase of up to 5%!
In conclusion, the Texas market is not feeling the effects to the extent the rest of the nation. While we are not in the boom market we were two years ago, it is evident that the Texas real estate market is healthy and growing. Population growth has tremendous bearing on the health of a real estate market and the projections for population increase in Texas are quite exciting. To quote Dr. Gaines "we are the most affordable State in the US. Texas housing is a bargain... land sales are going up... commercial rents continue to go up... You draw the conclusion as to how the real estate market is in Texas, and what potential it holds".
We look forward to working with you! -Roman
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2 comments:
Liked the article. I have a relative who lives in Texas and they are very happy. Some other states are not doing very well. There is a A Florida Commercial Real Estate Investors that investors may want to consider another way to look for Florida commercial investments.
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