Texas RE market different but why?

Question

A comment that comes up over and over is that the Texas real estate market is different than the rest of the country. I'm curious as to why people say this, any thoughts from the RE experts?

Joe Funari · Answer

@Claudia R. This is a great discussion. One other thing I would like to add is that there is plenty of land to keep expanding. All over Texas there are new home construction tying to keep up with demand. Thus, plenty of older homes needing rehabbed for either rental or flip exit strategy. I always tell clients if they don't get a successful bid not to worry about it. There will always be another similar property out there that is for sale.

Ronald Rohde · Answer

Texas has no state income tax, higher property tax, proximity and supply of construction workers, year round construction, booming economy. Lots of things make Texas different and it all has some impact on your RE investment strategy.

Bart H. · Answer

Texas has benefited from NAFTA as a key hub for trade with Mexico.   Tons of rail, tankers, important air hubs, accessible to eastern markets via the gulf, incredibly low energy costs, balanced environmental.  Pro business, right to work state, very reasonable home costs, a lot of high tech via telecom, defense, software etc.  Relatively low government intervention, relatively low cost of government a highly educated workforce with several world class universities.  NO personal income taxes.

Over the long term the southern states have been gaining population, and Texas has been one of the biggest beneficiaries of low taxes and reasonable regulation.

I do think those demographics of additional population continue over time should mean over the next 10-20 years that property values continue to go up.  I do think there could be some rough sledding at least in DFW in the short term.

Khanesia Washington · Answer

This is a result of several things. Most importantly are attractive prices for homes to investors out of state and country. Also is the fact that large corporations such as toyota have moved here recently and are creating jobs.

Kevin Wang · Answer

Texas is pro-business, supports small business. It’s not like in Cal where you see drastic movements in prices and it’s not like in Detroit where prices are so suppressed that the hopes of being a top city seems like a dream. Texas has that “just right” flavor to some investors.

Texas RE market different but why?

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