Jun 03
Texas: Not Your Typical Real Estate Market
Texas defies the national norm when it comes to trends in real estate. Unlike the high growth states such as California and Florida, Texas did not experience rapidly rising home prices and subsequent plunge of the past few years. This article by David S. Jones likens future trends to the popular Texas HoldEm poker game and, indeed, real estate ventures have historically been a gamble.
The gamble here is that real estate development and growth in Texas’ major metropolitan areas will continue on its heretofore-steady course.
Experts predict that, by the year 2030, the state population will grow by over 13 million with most of the density concentrated in the triangle formed by Dallas-Fort Worth, Houston, and San Antonio. With population growth comes jobs. Researchers predict another 4.5 to nearly 6 million jobs created in the next 25 years.
Most expect the growth to be steady and manageable with house prices staying in the affordable range for most families. Median prices in 2007 were at $151,000, compared with the $229,000 price tag nationally.
Experts warn Texans to brace themselves for a boom in residential and commercial real estate as more people become aware of the low cost of living and conducting business, as well as myriad employment opportunities and an appealing climate. Ideally, Texas legislators will recognize the problems inherent in a booming growth and take steps to curb them. Already, lawmakers are looking at ways to control development and protect the environment, while expanding needed infrastructure and services as demand increases.
If legislators are not willing or able to address rising concerns about infrastructure, public services, congestion, sprawl, and environmental destruction, this high stakes real estate game could be lost, and Texas could fold on a golden opportunity