Texans boast, “everything is bigger in Texas,” and now that includes the growth momentum. Several Texas cities are expanding at nearly twice the national average! Low density, sustained economic growth, and more affordable housing lead the way in the evolution of major cities. This is great news for home sellers and buyers, as Dallas-Fort Worth offers all of that and more.
Texas welcomed over 427,000 newcomers from August 2011 to July 2012, according to the most recent U.S. Census data released last week. Of that, Dallas-Fort Worth increased by 132,000 and has the fastest population growth in the U.S.
Houston-Galveston came in a close second, growing by more than 125,000 newcomers.
Forbes published an analysis that included this Census data. Using the Census data and Metropolitan Statistical Areas (MSA) data of the most populous cities and suburbs, they scrubbed and rated them on these metrics:
1.Rate of population growth for 2012
1.Estimated population growth for 2013
3.Rate of gross metro product growth (or economic growth)
4.Federal unemployment data
2.Median salaries for local college-educated workers.
In the Forbes analysis, Austin ranked number one, followed by Houston then Dallas. Still a great ranking.
Dallas is projected to have an economic growth rate of 4.9% through 2016 and a population increase of 2.2%.
The median household income is expected to grow and come close to a whopping $84,000 which will rank Dallas as the nation’s fourth-highest in median income.
Houston is booming too…the city’s population has climbed to 6.3 million and expected to add another 484,000 residents (the size of Kansas City, MO) by 2016. Energy and health care industries will fuel the growth for Houston at projected rate of 4.6% per year.
But those are just statistics. Why are we so popular?
While some of our growth is certainly traced to energy, what makes Texas so attractive is (drum roll)…. we have jobs! Our labor market is better than good, it is robust. We have a low corporate tax structure which is attractive to companies in addition to a business-friendly regulatory environment. Our unemployment rates are well below the national average. No state income tax is pretty attractive too!
All of this translates to a robust housing market. We may not be as cool or hip as San-Fran, Manhattan, or South Beach but our housing costs are twice as cool!
We are so cool, we are hot!
It’s great for sellers.
Yesterday an agent shared with me that she sold a listing before she got it entered into MLS. Another agent told me she wanted to hold a home open, but it sold before the weekend…stories like these are common lately.Then there are the frustrated buyers. They can’t run to homes fast enough to make offers. They are standing in line with back up offers. Or in fierce competition to outbid others as they race to the fax.
It’s great for buyers too!
Yes, you have to move fast to be the first in line for the home you love. Yes, prices are moving higher. And that’s the good news! Prices will continue to move higher. We are at the beginning of the appreciation cycle, and home buyers can benefit.
This is the new normal. And it is better than good.
It doesn’t take rocket science to understand with this tremendous influx of people coming to our city, housing demand will continue to be strong and home prices will continue to trend higher.