Texas is the number one state for population growth in America.
This growth in interest and population in Texas over the past few years has transformed the state into one of the most popular real estate markets in the country.
The Texas Real Estate Forecast is only expected to grow throughout the remainder of 2019, through 2020 and beyond.
Here are some of the key trends that every broker and investor needs to keep watch of for 2020.
You’re Going to Have More Clients, Employees, and Friends from California
Feeling like every new person you meet is from California? That’s because they are. And only more Californians are expected to make the move to Texas throughout the remainder of 2019 and well into 2020.
Over the course of a decade, 2.5 percent of California’s population left the state to reside somewhere else. The number one state they moved to was Texas. Many different factors are accelerating the growth of California expats throughout Texas (more on that below).
Brokerages should take the time to develop a clear understanding of this unique demographic. There is a lot of opportunities to be had for brokerages who focus their lead capturing and general marketing efforts towards potential buyers from San Francisco and Los Angeles.
You’ll See More Companies Moving to Texas
Nearly 1,800 companies moved to Texas over the course of a year. The majority are escaping high tax rates and unmanageable rents in bubbling markets like San Francisco and Los Angeles.
North and Southeast Texas cities are experiencing the most growth from these moves. To further this growth, the Texas Economic Development Corporation has actually sought out California companies, promising better opportunities and more affordability in Texas.
Expect The Job Market to Get More Competitive
More people are looking to career opportunities in Texas than ever before. This is great news for Texas brokerages when it comes to scouting new talent. Brokerage owners will have their pick of top talent across the country.
Specifically, Austin and Plano, Texas have been ranked as some of the most stable job markets in Texas. While job searches are promising in the Lone Star state, recruitment for new brokerages is only going to get more competitive.
Continued Population Growth Across Texas
Since 2015 Texas cities have consistently ranked among America’s top and fastest-growing markets. That trend isn’t going anywhere soon. Cities like Austin, Dallas, Houston, and San Antonio will continue to grow by roughly two percent.
This population growth is expected to also positively boost economic growth. This means that the demand and investment opportunity for multifamily, single-family and commercial real estate will all continue well into 2020 and beyond.
Texas Real Estate Forecast: Continued Investment Growth Across Texas
Texas markets big and small are all expected to continue to grow through 2020 and beyond. What’s great about Texas, is that it’s not just one type of real estate that’s booming, it’s nearly all of them. Brokerages of all types will have a lot to work within cities across Texas.
For example, San Antonio has transformed over the past decade and recently has experienced an increase of eight percent in home values and rental yields of just over six percent. Arlington has one of the most affordable home prices, with relatively high rental rates, giving it a nearly eight percent rental yield. Home values have increased to just over 10 percent in the market.
It’s Now or Never: Open a Brokerage in Texas
The Texas Real Estate Forecast makes the state one of the most promising places to open a new brokerage. TheBrokerBreakUp can help you build your own real estate brand and have your own agents. Think of it as your ally in building a brokerage.
Click here to get in touch and learn more about what TheBrokerBreakUp can do for you!