Real Estate Market Influenced by Rapid Growth

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.

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