We love Texas and we’re not afraid to shout it from the rooftops. Why? It’s simple really – as far as US property investment locations go, it’s hard to beat Texas! The economy is strong and diverse, jobs are plentiful, the population is booming, and the housing market is spectacular. The centre of this economic strength and ongoing boom is the “Texaplex”.
The whole state of Texas is booming and the heart of the state is a “megaregion” commonly referred to as the Texaplex. The Texaplex is geographically a triangle encompassing Houston, Dallas-Fort Worth, Austin and San Antonio. With 4 out of 5 Texans currently living in the Texaplex, it is definitively the economic and cultural centre of present day Texas and certainly the epicentre of its extremely bright future.
Stating it plainly – the Texas economy is BOOMING. There is no shortage of media, data and reports pointing to this fact. To give some context – the U.S. real GDP grew by 16.8 percent from 2001 to 2010, over that same period the Texas grew by 23.5 percent. In 2014 things aren’t looking to bad either – national growth rate in the U.S. was 1.6 percent last year, Texas’ was 2.8 percent. Statistically speaking, Texas is the number 1 state in the country when it comes to economic performance.
Texas is growing in population at a huge and impressive rate. From 2000 to 2013 the population swelled by more than 24% to a total of around 25 Million, ranking it #1 in the country for numeric increase in population. By 2030 this number is expected to grow to over 40 Million. The vast majority of this growth is expected to occur in the major urban centres that make up the Texaplex; Houston, Dallas-Fort Worth, Austin and San Antonio.
Why the massive population growth? Jobs.
It’s no secret – Texas has always been an oil and gas state. The energy industry brings a huge amount of wealth the state, great jobs, and a lot of prosperity. Besides these points, the fantastic thing about the energy industry is that is highly resistant to economic downturns. Should another economic crisis hit the world people will do what they did last time; cut back on discretionary spending like restaurant meals, bars, and consumer items. But people still need to turn their lights on, watch TV, drive their cars, and take public transport. This is part of why Texas was relatively unscathed during the Global Financial Crisis.
The Texas housing market is growing from strength to strength. With such massive population growth it comes down to the basic economic principle of supply and demand. Millions of people arrive in Texas, millions of people need a place to live. It’s really that simple. This manifests in the form of stable and steadily appreciating property prices, lots of high quality new construction, and increasing rental rates. For an investor this is largely an open and shut homerun.
As Texas continues to boom and the Texaplex continues to grow in size, economy, and culture, private and institutional investors’ alike need to strongly consider Texas as they acquire more investment properties. Fortunes are made by buying in the right locations at the right times. Is this one of those times? We think so. But do your own research, make up your own mind, and reach out to American Properties for further guidance whenever you like. Happy investing!