The Texas real estate market has been bolstered by strong job growth for much of 2013. Many Texas companies have continued to hire new employees, prompting out-of-state job seekers to move into the Lone Star state. Incidentally, the residential and commercial real estate markets have seen tremendous growth as they have continued to recover from the aftermath of the recession and housing crisis.
Mark Dotzour, chief economist of the Real Estate Center at Texas A&M University, said, "Apartment construction has been happening throughout the Great Recession because of the continuous increase in population and employment levels. Commercial real estate construction for office and industrial properties has resumed in Houston and other Texas large metro areas."
Construction workers continue to go back to work around Texas and in the Dallas real estate market where inventory levels have had a hard time keeping up with buyer demand this year. And experts point out that the growth of the statewide real estate market is likely to continue because so many people are moving to Texas in search of jobs.
Many people believe that oil and gas is the largest attraction in Texas when it comes to jobs, however, experts say that there's more to job growth here than the energy sector. Dallas in particular has seen strong growth in the insurance, technology and financial services sectors, which has helped push prices higher for Dallas homes and led to a lack of inventory. And many real estate experts believe that the market is poised to see even more price gains in the coming months.
A Solid Economy in the Lone Star State
Here in the Lone Star State, the solid economy helped the real estate market recover much quicker than the rest of the country. Dotzour adds, "Virtually all sectors of the economy are expanding in Texas this year." This includes construction, which Texas leads the nation in when it comes to industry job growth.
Ryan Severino, senior economist with real estate research firm Reis, went on to say, "Lower taxes, less onerous regulations and less stringent labor laws, plus a booming energy economy, have really helped the state." What's more, Texas benefits from a lack of corporate or personal income tax, and state and local incentives have been helping attract new businesses.
Job seekers have been moving to Texas because of the availability of jobs. Between Austin, Houston and Dallas, job growth is twice the national average, and the unemployment rate is a full percentage point below the national rate. In the Metroplex, the availability of jobs is diverse, with many Fortune 500 companies calling Dallas home because of the central location in the country. These include companies like Yum Brands' Pizza Hut, Ericsson, MedAssets and the Federal Aviation Administration (FAA).
Over the last year through August, Texas has added more than 24,000 construction jobs. According to the Bureau of Labor Statistics, that comprises 14 percent of construction jobs nationwide. And according to economists and real estate experts in Texas, the main reason for the construction boom is jobs.
Adam Saphier, president of central Texas operations for Trammell Crow, a commercial real estate company, said, "The big picture in Texas that sets it apart is the incredible job growth."
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