While the real estate market slowed a bit in 2018, it still did incredibly well. Last year, total sales rose only about 1.7%. Even with a bit of a slowdown, annual transactions were still at a record high. The state’s real estate market is still booming. Here are 5 reasons why.
The Economy is Doing Well
The economy in Texas is doing quite well, particularly in some major cities like Austin. There are several reasons for this. Manufacturing in Texas is huge. In 2017, the state was responsible for 10% of the total US manufacturing goods, or $226.16 billion. It’s the largest exporting state, responsible for 20% of the total exports from the US. The state is also the number one oil producer in the country. On top of all of these factors, Texas residents have enjoyed one of the fastest income growths in the US.
In addition to the booming economy, Texas has all kinds of job opportunities, particularly in certain areas like Austin. Austin has actually been referred to as the new Silicon Valley, with big name tech companies moving from California to Texas. In addition to these large companies, Austin is also the home to numerous tech startups. There’s even a conference, SXSW, every spring. This tech-festival hybrid brings together all kinds of tech experts and networking opportunities. Job opportunities bring people to the state.
Austin & Dallas-Fort Worth Areas
The economic growth in Austin and the Dallas area are growing fast. In fact, Austin was voted as the 3rd fasted growing city in the nation. Dallas is further behind but has had a very low unemployment rate the past few years. Many of Austin’s neighborhoods have seen growth in the real estate market.
Ross Quade of Newlistingalert.com explains, “Austin is a desirable city for many reasons and the real estate market has been on fire the past few years.”
Low Vacancy Rates
Many areas of Texas have low vacancy rates, for both homes and apartments. One such area is Austin, which sits at the number 5 spot on Trulia’s list of top 10 housing markets. El Paso was ranked at the number 9 spot. A low vacancy rate indicates that the supply of home for sale (or apartments for rent) doesn’t exceed the demand. There are also more people looking to move to the state than are looking to leave it.
Home Values on the Rise
The values of homes in Texas are increasing. While this can cause problems for those just starting out when it comes to wanting to purchase their first home, there are still plenty of options available, including rentals. If you’d rather buy, though, there’s a good chance you can still find something within your price range in an area you’ll love.
People Want to Move Here
Texas, some areas more than others, has experienced incredible population growth. Cities like Austin have seen some of the biggest population jumps. It’s not just the job opportunities that people flocking to the state though. Out of the top 10 fastest growing cities in the US, 4 were in the state of Texas. Different areas of the state have their reasons for attracting new residents. For instance, people flock to Austin not just because of the tech opportunities. They come for the incredible weather. Great weather means lots of time outdoors, and Austin certainly isn’t short on things to do outside with plenty of parks, trails, and swimming holes. The city is a foodie’s paradise and a music lover’s dream.
It’s projected that the sales of single-family homes will slow down in 2019, but will bounce back up again the following year. This isn’t a bad thing. A slowdown is necessary after years of rapid growth to help balance things out. Even so, the real estate market is booming. Not only is Texas a great place to live, it’s also a great state to invest in.