The Current State of the Texas Economy

A recent Associated Press survey on the economy by economists didn't paint a pretty picture. Home values are stagnant, consumers are still cutting back and not enough jobs are being created. While all of this is true in Texas, too, the Lone Star state still seems to be weathering the economic "recovery" better than other states.

In fact, Austin was the featured city in a recent Time magazine cover story on jobs. At a time when other cities are still shedding jobs, Austin is actually creating new jobs. The article featured tech, construction and energy companies that are hiring in the Austin area. Innovation in these areas, particularly technology and energy, is what Time predicts will be the driving force behind future job creation across the country.

As the government offers tax incentives for companies that are hiring, Time posits that plan puts effort and money in the wrong area. According to the article, the emphasis shouldn't be on the actual jobs that will be created, but rather on the ideas that will continue to create jobs well into the future. It's a worthy notion, just difficult to quantify when everyone wants hard numbers on the future of the country's economy.

Part of what Austin has done right is to foster small businesses and invite larger companies to work in the city, such as Facebook, Inc being offered incentives to open an office in Austin. The Small Business Development Program is a good example of an Austin initiative that helps entrepreneurs get businesses up and running with support services.

Texas has also benefited from not being part of the boom and bust experienced by states like Florida and Nevada. Texas certainly grew during the first part of the decade, but, for the most part, the growth was steady rather than meteoric. Home prices increased, but they didn't soar like the home values in California.

Unemployment nationwide is predicted to rise again before the end of 2010, but the unemployment rate in Texas is below the national average and has a good chance of holding steady. Even with people moving to Texas from other states, jobs continue to be available and new jobs are being created.

Foreclosures are still on the rise across the country, and home prices are not expected to increase anytime soon. Texas has certainly seen its fair share of foreclosures, but so far the housing market has remained mostly stable, although weaker than in the mid 2000s.

Technology and green jobs are predicted to be the best path to job and economic growth in the future and Texas seems to be headed down that road already. Start-ups in wind and solar energy can be found across the state and Austin is considered a mini Silicon Valley. As Texas continues to hone its economic recovery skills, hopefully the rest of the country will follow.


Ki is a realtor working in the Austin real estate market. His website features information covering Austin Texas real estate. It also provides a graphical search of the Austin MLS along with statistics and news on their blog covering Austin real estate.