The Real Estate Boom In Texas: An Overview
The real estate market in Texas is considered to be one of the best in the United States. Although in recent times, the global recession hit the real estate market of the state, following a rise in the short-term interest rates that has decelerated the real estate growth to an extent, Texas is still considered to be a hot destination as far as purchasing a house is concerned, as against many other states in the country.
Factors for real estate boom
There are several factors that make the current real estate market of Texas very special with an extremely positive outlook in the future. The reasons for this thriving market include:
A steady rise in the employment rate - In the last one year, that is between September 2009 and September 2010, the private sector in the state registered a 1.9 annual employment growth rate, which is higher than the national average. Jobs have added in sectors such as manufacturing, financial services, hospitality, education, healthcare, mining as well as professional services in the recent times. This steady rise in employment is responsible for the real estate boom in the state.
Growth in population - Texas, the second largest state in the US, also ranks second in its population. As per the US Census Bureau, the current population is 24.7 million, a steady rise from 23.5 million in 2006. A boom in sectors such as healthcare, retail, educational services, IT/ITES, tourism and transportation are in sync with the high population growth, as a result of which the real estate market is thriving in the state by cashing in on the growing opportunity.
Other factors - Apart from the population growth and increase in employment, the state has a high personal income growth, a strong economy, low interest rates in loans and mortgages, and affordable cost of living and low price of land.
Real estate trends in Texas
The real estate scenario in Texan cities like Austin, Dallas, Houston and San Antonio has grown over the past two years despite the recession. Most of these cities in fact showed very little impact of recession. The unemployment level decreased over this period with an increase in job growth. There was little drop in the price of properties, especially residential properties. Commercial properties witnessed a slight decrease in 2008-09 from 2007-08 but there is a positive absorption of these properties in the current fiscal 2010-11. The state's foreclosure rates have also been one of the lowest in the US.
According to recent data, apart from the main cities and towns in Texas, there has been an increase of housing demand in the rural areas of the state. Many land and properties in these areas have been purchased by national and foreign investors to build their commercial properties such as offices, incubation center and other commercial centers.
Experts believe that the real estate market in the state has a bright prospect and realtors will continue to capitalize on this impending growth. Going forward, up gradation of state infrastructure, exciting business prospects, attractive retirement schemes and other factors will have a tremendous bearing on the real estate market of Texas.