Jul 28, 2010

Changes in Texas Population = Changes in Texas Real Estate

Population changes over the next few years will have a significant effect on the future of Texas real estate. The Texas Real Estate Center (a research center) announced yesterday that more people are moving to Texas than are moving out. And all those new residents will need a place to live. Great news for the real estate industry.

Gary Maler, director of the Real Estate Center, states that "Forty years ago, the Texas population was largely rural and Anglo. Forty years from now, Texas will be largely urban and Hispanic.

In the past, Texas population growth reflected “natural” increases in the birth rate. Fifty or sixty years ago, 94 percent of the Texas population growth consisted of native Texans. By the 1990s, only half of new Texans were native.

“The real estate implications are significant,” says research economist Dr. Harold Hunt. “Population primarily from net immigration means there are more adults and more would-be homebuyers.”

The RE Center notes that "between 2005 and 2008, more than 200,000 Californians moved to Texas. Whether they stay depends on how well the state’s economy holds up."

"Texas’ population also is younger than the nation as a whole. At 33.2 years, the median age gives Texas the second youngest population. Through 2040, Texans 65 and older will increase three times as fast as the overall state population. Flattened incomes and falling retirement savings will lessen the demand for second homes. Many boomers age 55 to 64 will continue to work, thus reducing the number of future relocations."

Texas is becoming more urban, especially east of I-35. By 2030, the average population of the five largest Texas cities is expected to more than double. Dallas-Fort Worth is predicted to have the highest population density. We'll likely see more multifamily properties for sale and rent.

In the next 20 to 30 years, Hispanics will outnumber whites in Texas, according to the Texas State Data Center. Statistics show that they are less likely to own a home. “Home purchases by new Hispanic immigrants will continue to be limited because of income, education and language constraints,” says Maler. “However, as future generations become better educated, more skilled and more proficient in English, exceptional growth in the Texas Hispanic population could result in increased home purchases in the years ahead.”

[where: 75230]

1 comment:

plano homes for sale said...

It is very common thing that a lot of things change when there is a significant change in the population of a country or a city and I would say that real estate is also one of those things. If the population increases in an area then the demand of homes will also increase which will result in the increase in home prices too.