Texans realize the blessing.

Texans realize the blessing we have with one in four of all new jobs created in our state since the recession. Employment as a whole in Texas is up 1%. The Dallas and Fort Worth areas have grown jobs by 8.8% and 10.6%; San Antonio is up 15%, Houston 17% and Austin nearly 23%. Positive employment is driving demand for Texas real estate. Let’s review some of the other news regarding residential and commercial real estate in Texas’s major metros.

Austin – residential

  • There are over 60,000 people moving to Austin each year, and over 20,000 new jobs created annually
  • There is less than 4.4 months supply of resales, which is 2.4 months less than May of last year
  • 25% more homes sold in May than a year ago
  • Values have slowly risen, with a median price of $215,000 – 10% greater than May 2011
  • There are less than 7,200 rental units for those 20,000+ families moving here available with little relief over the next couple of years, even with a back log of over 20,000 potential units coming online.
  • Rents are some of the highest in the state on average at $1.05 per square foot, with little possibility of slacking soon
  • Austin – office

  • 2011 marked the best year since 2006 with over a 1,000,000 sqft of absorption
  • Even with a strengthened local economy and hot job market, there is very little in the pipeline ready for construction
  • There is a potential undersupply on the horizon for office space with our continued job creation

    San Antonio – residential

  • Over 40,000 people are moving to San Antonio annually
  • San Antonio is among a handful of metros that recovered to its pre-recession employment peak by mid 2011
  • The defense industry in San Antonio employs over 89,000 and provides a $5.25 billion impact to the city’s economy
  • The market continues to improve with inventory just over equilibrium at 6.6 months
  • Home values have also continued to improve with a 5% increase in median price
  • Rental vacancy inched up to 93.3%. New rental supply in San Antonio fell to a 17-year low, while rent growth measured a 17-year high
  • Effective rents for new leases in San Antonio jumped at a solid pace of 0.5 percent during 1st quarter, taking the annual level of rent growth to 4.8 percent
  • Rents have increased as much as 7 to 8 percent in areas like Central, Northwest and North Central San Antonio.

    San Antonio – commercial

  • Employment and business growth has led to a 50% absorption rate of vacant space in 2011
  • With little construction in the pipeline, office occupancy should continue to improve, putting pressure on rent values

    Houston – residential

  • With over a 1,000 people moving there a day, Houston job growth has lead the nation with over 81,000 new jobs in the last twelve months according to the TWC (Texas Workforce Commission)
  • One-fourth of all new jobs created since the recession are in Houston
  • The Houston region not only experienced faster job growth than any other major metro in 2011, but it also paid its workers more than the national and state average according to the US Bureau of Labor Statistics
  • Strong demand continues to drive the market, with sales of all property types in Houston totaling 7,327 in May, an increase of 24.2 percent from May 2011.This is the largest monthly increase for single-family sales since last August
  • The average price increased 8.5 percent year-over-year to $237,083, and the median price was up 7.1 percent to $168,000
  • Total pending sales at the end of May were up 10.5 percent from the same time last year, which indicates June sales will be strong according to the Houston Association Of Realtors
  • Active listings were down 18.1 percent from May 2011, and the inventory of single-family homes dipped to 5.5 months, its lowest level since March 2007
  • With 5,000+ new units and absorption of 9,000+ units a year, the rental and investment market should remain strong for a couple of years

    Houston – commercial

  • Commercial brokers have indentified 44 industrial and eight office projects under construction at the end of 1Q12
  • This represents over 4.4 million square feet of industrial and 2.2 million square feet of office space. This is four times the amount of industrial space and twice the amount of office space being built this time last year

    Dallas/Fort Worth – residential

  • 73,000 jobs created last year and close to 90,000 jobs in 2012
  • However, DFW has not returned to pre-recession employment levels
  • DFW finally saw home values improve with a 2% increase in median values to $147,000
  • The rebound in the North Texas housing market continued with a double-digit percentage rise in pre-owned home sales.
  • D/FW real estate agents sold more than 6,400 single-family homes last month, 11 percent more than in 2011
  • Median home sales prices were up 9 percent from a year earlier. It was the tenth month in a row that home sales were higher than in the same period of the previous year

    Dallas/Fort Worth – commercial

  • The Dallas/Fort worth office market continues to show the affects of the national recession with 20%+ vacancy and slow absorption. With over 50,000,000 square feet of vacant office space and a slow down in 1Q12 to just under 260,000 square feet, the market is prime for some good news