employment growth

In Texas, it’s all about jobs, jobs, jobs.

A new report from the Real Estate Center at Texas A&M University says that the Texas economy gained 276,400 nonagricultural jobs from June 2014 to June 2015, an annual growth rate of 2.4 percent, compared with 2.1 percent for the United States. Many of the major metropolitan areas saw much bigger gains, like Midland-Odessa.

Midland ranked first in job creation, followed by Dallas-Plano-Irving, Odessa, Beaumont-Port Arthur, Austin-Round Rock, and San Antonio-New Braunfels. Fort Worth-Arlington ranked No. 7 with 2.7 percent job growth.

In fact, every single Texas metro areas except Wichita Falls had more jobs in June 2015 than one year prior.

Big sectors for job growth were:

  1. Leisure and Hospitality: 5.05 percent growth
  2. Education and health services: 3.87 percent growth
  3. Professional and business services: 3.54 percent growth
  4. Transportation, warehousing and utilities: 3.52 percent growth
  5. Construction: 3.34 percent growth

All these new jobs in the Texas economy were created despite lower oil prices. Real Estate Center research economist Ali Anari says there hasn’t been much impact from dropping oil prices yet. But that could change.

“The oil companies hedged into the future and they have oil contracts, many of them extending to the end of this year,” Anari said. “If there is a downtown, it would not be apparent until next year.”

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Homebuilder

With Western Texas Intermediate oil hovering around $45 a barrel, folks have been speculating about new home construction in Midland-Odessa and how layoffs and budget cuts might affect the spectacular boom of the past few years.

But while economists might raise a red flag, local homebuilders say pent-up demand and a more diversified economy are keeping the phones ringing and people signing on for new home construction.

“The demand is still the same as it has always been—everyone wants their home built yesterday,” said KC White, owner and president of KC White Homes, Inc. “More people outside of the oil world are calling my phone. There are more than just oilfield-related jobs here.”

Last year, 917 single-family building permits were issued to homebuilders for new residences in Midland, and 430 in Odessa, according to the U.S. Census Bureau and Real Estate Center at Texas A&M University. With the ink still wet on those contracts, builders don’t see a slowdown anytime soon. Many even have a waiting list.

Single family construction permits

Tight inventory is one of the biggest factors at play. With only 3.8 months of inventory in November 2014 (the most recent data available), the average home price in Midland was $301,500. Odessa had an even tighter market in that same month, with only 2.4 months inventory, and an average home price of $231,100. Jump to read more!

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Dallas Skyline

Holy crown moulding, Batman! Can you believe this? Bloomberg News just published a story saying that of the top 20 housing markets in the good ‘ol US of A, Dallas performs better than every single one of them!

Since the loud pop of the national housing bubble bursting, Dallas has recovered and gone on to thrive, the story says:

“We didn’t have a bubble in the first place, so there was no real collapse in prices,” said Mark Dotzour, chief economist at the real estate center at Texas A&M University in College Station,Texas. “I expect we’ll be in this seller’s market that’ll lead to higher appreciation than normal this year and next.”

Dallas is the Case-Shiller index’s only city in Texas, a state where the housing industry has flourished amid economic growth, few environmental constraints and abundant land. The Dallas-Fort Worth area added 104,900 non-farm jobs in April from a year earlier, the most after the New York City area’s 160,000 jobs and Houston’s 111,200, according to the Bureau of Labor Statistics.

“Underpinning the housing sector’s gains is a broad-based expansion of the overall Texas economy,” according to a June 13 paper by D’Ann Petersen, a Federal Reserve Bank of Dallas economist, and Christina Daly, a research analyst. “Stronger-than-average employment growth and consistent in-migration should continue boosting demand for homes and apartments.”

Agents, are you having your best sales year ever? Tell us about it in the comments!

Dallas Skyline

Holy crown moulding, Batman! Can you believe this? Bloomberg News just published a story saying that of the top 20 housing markets in the good ‘ol US of A, Dallas performs better than every single one of them!

Since the loud pop of the national housing bubble bursting, Dallas has recovered and gone on to thrive, the story says:

“We didn’t have a bubble in the first place, so there was no real collapse in prices,” said Mark Dotzour, chief economist at the real estate center at Texas A&M University in College Station,Texas. “I expect we’ll be in this seller’s market that’ll lead to higher appreciation than normal this year and next.”

Dallas is the Case-Shiller index’s only city in Texas, a state where the housing industry has flourished amid economic growth, few environmental constraints and abundant land. The Dallas-Fort Worth area added 104,900 non-farm jobs in April from a year earlier, the most after the New York City area’s 160,000 jobs and Houston’s 111,200, according to the Bureau of Labor Statistics.

“Underpinning the housing sector’s gains is a broad-based expansion of the overall Texas economy,” according to a June 13 paper by D’Ann Petersen, a Federal Reserve Bank of Dallas economist, and Christina Daly, a research analyst. “Stronger-than-average employment growth and consistent in-migration should continue boosting demand for homes and apartments.”

Agents, are you having your best sales year ever? Tell us about it in the comments!