Texas Why Area, including Houston & Dallas Forth Worth

Texas’s Competitive Edge

Affordable housing, a lower cost of living and doing business, abundant employment opportunities and an appealing lifestyle are just the beginning when examining the reasons why Texas is poised to continue booming through 2030. Read more >> In fact, housing affordability may be one of the most significant long-term growth stimulants for the Lone Star State as it strives to maintain its position as the most housing-affordable, high-growth state in the U.S.

At roughly twice the national average, Texas also leads the nation in job creation with the Houston and Dallas metropolitan areas setting the pace for all other U.S. metros. Read more >>
The U.S. Census Bureau’s population growth projections also place Texas ahead of the nation with an estimated 43 percent increase by 2030 or roughly 1.7 percent per year compared to a one percent projection for the country as a whole.

With robust population and job growth, the next quarter-century should be marked by prosperity in Texas.

Nonfarm Employment Growth Rates for U.S. and Texas, 2006 - 2008

Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

Economic Strength

• Texas has the 11th largest economy in the world with about the same annual gross domestic product as Brazil.
• The Texas Gulf Coast has a crude operable capacity of 4.015 million barrels per day representing 24.4 percent of the U.S. total.
• The state is also a top-ranked destination for foreign direct investment Read more >> (due in large part to the Texas Enterprise Fund and the Texas Emerging Technology Fund) and was named the best state to do business by many of the nation’s leading executives for the third year in a row, according to Chief Executive Magazine.
• In 2007, Texas led the nation in exports Read more >> for the sixth consecutive year with a value of more than $168 billion.

Job Creation

• Texas was first in adding new jobs in 2007. Read more >> The state’s annual job growth rate rose to 2.7 percent, compared to a 0.6 percent national growth rate.
• Houston, Dallas-Fort Worth, San Antonio and Austin – together accounted for nearly 25 percent of the nation’s job growth between January 2007 and January 2008. U.S. Bureau of Labour Statistics
• Personal income is also on the rise with Texas’s total personal income growing by 422.8 percent Read more >> , from $142 billion to $741 billion, between 1980 and 2005. By the first quarter 2007, this figure had reached $841 billion.

Population Growth

• Texas is the second most populous state in the U.S.
• Between 2000 and 2006, the state’s population grew by 12.7 percent, double the national

  Texas Population and Components of Change

  
• Texas gained 27,000 new residents over the age of 65, placing it second behind Florida Read more >> for attracting the 65 and older crowd. Bringing $732 million worth of income to the state’s economy, these new residents have a huge economic impact, yet typically take very little from their communities in the form of schools and other services.

Houston & Dallas/Fort Worth 
Two Economic Powerhouses with Room to Grow

Houston

As the largest city in Texas and the fourth largest in the U.S. Read more >> , Houston offers residents an economically diverse and international city that is setting the pace for job creation in the United States.

Houston is recognized globally for its energy industry, particularly for oil and natural gas, as well as for biomedical research and aeronautics.
Its pro-business climate:

• low taxes and utility costs,
• affordable housing,
• accommodating infrastructure, and,
• entrepreneur-friendly business climate

will ensure it remains the energy capital of the world and one of the nation’s most dynamic markets.

Economic Growth | Job Creation | Population Trends

• Between April 2000 and July 2006, Houston’s population grew by 17.49 percent. Read more >> A combination of domestic and international migration helped Houston rank fourth for overall population growth between 2006 and 2007 and this growth is largely attributed to the strength of region’s economy.
• In 2006 the Houston metropolitan area ranked first in Texas and third in the U.S. in the “Best Places for Business and Careers” category, according to Forbes magazine.
• The addition of 100,100 new jobs in 2007 exceeded projections representing 10% of the nation’s net job growth and placed Houston 1st in the U.S. Read more >> This was a four percent increase over 2006, which places Houston first in job growth among the 12 largest metros in the U.S. for the second year in a row. The job market is forecast to expand by 50,000 positions in 2008, a 2.1 percent increase.
• Houston is a leading centre for building oilfield equipment. Read more >> Much of the success that Houston enjoys as a petrochemical complex is due to its busy man-made ship channel, the Port of Houston, which ranks first in the U.S. in international commerce. The Port is planning a $74 million Bayport expansion with thousands of new jobs anticipated upon completion. Employment growth is being lead by energy and shipping companies. As well, the professional and business services and trade, transportation and utilities sectors added 35,800 jobs in 2007.

Houston’s Multi-family Apartment Real Estate Market Outlook

• Houston is well-positioned as one of the top apartment markets to track in 2008 Read more >> due to strong job creation, a demand for secure energy supply and population growth.
• New-home sales were down 14.7 percent in 2007  the correction impact is primarily falling on sales .This trend has translated into a rapid leasing of apartments in the city.
• The sudden shift in momentum experienced in Houston’s multi-family housing market meant positive absorption in 2007, which then allowed apartment owners to raise rents across all classes.
• Demand for apartments is expected to remain strong given the area’s attractive capitalization rates coupled with its solid long-term economic and demographic outlook. Read more >> As market fundamentals improve in 2008, values should also continue their positive momentum as rental rates and occupancies strengthen.

Dallas/Fort Worth  

The Dallas/Forth Worth Metropolitan is the largest metropolitan area in Texas is made up of 19 counties in north central Texas. and is the fourth largest in the country. Read more >> Often referred to as the Metroplex by residents, Dallas/Fort Worth is considered the economic and cultural hub of the region.

Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the U.S and is often referred to as Silicon Prairie Read more >> because of its large information technology industry base. This includes companies such as Texas Instruments, Electronic Data Systems, AT&T and Verizon. Texas’s farming and ranching industry is based on the other side of the Metroplex in Fort Worth.

Economic Growth | Job Creation | Population Trends

• As of April 2007, 24 Fortune 500 companies were headquartered in the area. Read more >> Dallas/Fort Worth maintains one of the healthiest economies in the U.S. despite an overall economic slowdown. This is being driven by business expansion and corporate relocations.  Total GDP reached $284.5 billion in 2005
• Business 2.0 Magazine ranked Dallas/Fort Worth as one of the top 10 “Hot Cities for Job Growth” (May 2006). Read more >> The Metroplex contains 26 percent of the state’s population, 27 percent of its labour force, 28 percent of all wages and salary jobs and produces 33 percent of the state’s total product as measured by its Gross Domestic Product (GDP)
• Employers anticipate that 40,000 new jobs will be created in 2008, representing an increase of 1.4 percent, making it one of the top in the country for employment growth..
• The population of Dallas/Fort Worth in 2000 was 5,221,801 and is projected to grow by over one million residents to reach 6,328,200 by 2010.

Dallas/Fort Worth’s Multi-family Apartment Real Estate Market Outlook

• Between first quarter 2007 and first quarter 2008,
• 
  asking rents advanced 3.3 percent, representing the largest increase in six years.
• healthy occupancy and rent gains resulted in a 5.9 percent increase in revenues (average revenue growth during the previous period reached 3.6 percent).
• Until housing markets stabilize and uncertainly eases, current renters are expected to remain in apartments.
• Relatively healthy employment figures are expected to continue attracting job seekers, partially offsetting increased construction activity.
• Balanced supply and demand fundamentals are projected to boost asking rents by 3.3 percent and effective rents by 3.0 percent.