The Carvajal Group Blog

Why a Texas boom?

May 27th, 2011

According to an article released this week by the Austin Business Journal, Texas added 732,800 jobs since 2001.  The next closest state was Arizona with 92,000 jobs added over the same period.  According to the article only 19 states even reported gaines and the biggest loser was California which lost 632,000+ jobs over the same period.

Because of Texas’ affordability and quality of life, many large companies are moving offices and headquarters to cities in the Lone Star state and taking advantage.  Large employers can pay less for happier employees in Texas!  Look at Austin, Texas,  for example. Companies like Google, Facebook, St Jude Medical, and Freescale to name a few, see huge benefits in employing in Austin.  Austin offers a great quality of life and extreme affordability when compared to other parts of the country.  Music festivals, night life, beautiful hill country, and plenty of outdoor activities make living and working in this city very desirable, so much so, that many employees will work for less just to live here.

So how does this incredible and unmatched job growth affect the Austin real estate market?

I believe the answer is obvious; the growing and stable job market has a very positive impact on Austin real estate.  However, tight credit markets due to national economic uncertainty and high unemployment have made it tough for buyers to purchase property.  Also, many Gen Y consumers see home ownership in a bad light because of the recent economic crash that devastated so many.  These once buyers are entering the rental market and driving up prices of Austin rental property.  Currently there is a huge race to build multifamily properties in central Austin as occupancy rates continue to rise in central Austin.

Many seasoned investors were crushed in the recent economic meltdown, not because of Texas properties, but because of investments made in places like Las Vegas, California, and Florida.  So while investors have never seen a prettier opportunity in Texas cities, many do not have the purchasing power to make a move.  This means that new investors must enter the market.  Young professionals need to look at the opportunity and use their cash flow and credit to invest in real estate and build real wealth.

For more information about Austin real estate or for assistance with your Austin Home Search, contact our team today at (512) 419-7770

Tags: Austin Home Search · Austin Job Market · Austin Real Estate · Austin Rental Property