We may be coming to some realizations about the Texas and Houston economy and how it has affected the real estate markets the past five years.
One is that the recession in Texas, at least compared to elsewhere in the country, has lasted a relatively short time. Along with that, we are leading the nation in economic growth.
Less Harsh in Texas
Let’s look for example, at the percentage of delinquencies. In Texas, they are running at 1.5%, while in Florida the delinquency rate is 8%. Right now, Texas leads the nation in job growth and new home construction. In fact, Fort Bend has the highest home construction rate for any county in Texas. If the Lone Star State’s economy were ranked as a country, it would be number 14 in the world. These are all impressive points, indicative that while the recession has taken its toll everywhere, for those of us in Texas, it has been relatively short, and yes, relatively mild.
Now is a great time to be in Houston
Approximately 1,000 people are relocating to Houston every week.
Jobs are looking strong as unemployment here has dropped to 6.5%, while nationally it is over 8%. We have the highest income per cost of living of any major U.S. city, and have the fastest growing wages. Houston is still a great town for manufacturing jobs and there are over a million jobs associated with the Port of Houston.
The Effect on Real Estate
Affordability of real estate is at a 40 year high. All of this is having positive effects on various types of properties.
- Apartments
Apartments are the hottest segment in the market. Apartment vacancy rate today is at 4.5%. Consider anything below 5% is a landlords market and you can understand the buzz.
- Office
Exxon mobile will be moving 2000 people here from Virginia when their new campus is ready. The Vacancy rate in the Central Business District has dropped from 14.3% to 11.3%.
- Single Family Homes
Trulia has said Houston in top five markets to watch. Sales are up 13 months in a row. Yes, Houston is still a bargain. Housing prices are 19% below national average, and 36% below 27 other metropolitan areas with 2 million population. New residential permits are up a very encouraging 43.3%.
- Retail
Between 2008 through 2011, Houston was number one for increasing retail. One of the new retail centers scheduled for 2012 is already 75% leased. Retail has remained, and continues to look strong.
- Industrial
Houston is one of the strongest industrial markets in the United States. Since January of 2011, over 7 million square feet have been absorbed and there are 44 industrial projects in the works.
So what should you be doing?
To wait is to lose ground. Look for good buy and hold opportunities. Check on the Days on Market inventory for rehab and sell properties. Be a part of the positive approach to this market.
Do your homework, and as always, you can count on us for answers to your specific questions.
Call Bill Edge at 713-240-2949 to see Houston Homes in 24 hours or less.
Source: Houston Association of Realtors
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