Texas is presently witnessing a number of changes to its housing, population growth, and demographics. Analysts like James Gaines of Texas A&M Real Estate Center has termed 2016 the transitional year. The year marked the end of an industry boom which lasted about five years. The state population and also jobs grew in 2016. This continues to be the case even in 2017. Slower job growth in Austin-Round Rock area clocked at 2.8 percent during May. To put in perspective, the same area added approximately 160 residents every day in Austin-Round Rock area in 2016. Growth is good only if local and state resources could be in tandem with it. If not, the consequences could be horrific. Since Texas has an average age of about 34.2 years, an increasing number of people are living in apartments or renting houses.
Population and real estate
If one goes by the US Census Bureau, about 21.8 percent of the population in Texas in 2015 were aged anywhere from 20 years to 34 years. The 'over 65' population numbered approximately 11.7 percent. According to Gaines, Williamson County, from 2010 to 2050, will see a rise in population by approximately 368 percent. Every year will see an addition of 38,850 individuals. Two million people are anticipated to be residents in the county within 2050.
The real estate market is beginning to change due to these factors. These changes happen due to both change in affordability and also in the demographics. Baby boomers now choose to live in rental properties. There are also significant changes in family formations and also in the lifestyle. It is found that the home ownership within the area comprising Austin-Round Rock has plummeted from the 61 percent recorded in 2014 to 57.5 percent recorded in 2015.
Affordability is important
Affordability is also an important factor, with Williamson County residences witnessing a rise in housing prices. Gaines said that the average income is presently growing at much slower rates compared to home prices. Home prices have gone up by 2.9 percent in Round Rock when compared to the identical period in 2016. The average price in the Round Rock area is now approximately $254,250. Only about 16.3 percent of residences are priced below $200,000.
Home prices in Williamson County have also risen by about 6.9 percent during 2017's second quarter. If one listens to Gaines, about 42 percent of Texas households could not buy a house priced more than $150,000. This shortage of affordable housing is pushing up rental markets.