Texas Real Estate report shows that land and home sales drive Lone Star State economy
Texas Real Estate report shows that land and home sales drive Lone Star State economy |
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Real Estate is the engine which drives much of the growth of the Lone
Star State. According to an analysts’ report released by Texas A &
M University in 2007, there was a staggering $1.5 billion worth of real
estate business done in the State of Texas.
Single-family residences alone accounted for $847.2 billion or 56% of the state’s real estate wealth. Multi-family housing added another $77 billion, a little more than 5%.
Real Estate is the engine which drives much of the growth of the Lone Star State. According to an analysts’ report released by Texas A & M University in 2007, there was a staggering $1.5 billion worth of real estate business done in the State of Texas. Nearly 7.5% of all housing units in the United States are in Texas. And nearly 13% of all building permits issued last year were in Texas. The real estate industry accounted for 7.8% of Texas’ total gross domestic product (GDP) in 2006, ranking behind manufacturing (13.4%) and mining (9.8%). People with lower incomes find Texas homes more affordable than elsewhere in the United States as a whole. The percentage of houses owned by those with an annual income of less than $25,000 was higher in Texas last year than for the rest of the nation and it continues to outstrip the continental USA. Amongst other facts the 2008 report drew attention to the following: • Every $1 million of revenue in the Texas real estate industry generates just over half a million dollars of revenue in other parts of the state economy. • Every $1 million of revenue in the Texas real estate industry generates 5.16 jobs in the state real estate industry and five jobs in other industries. • $1 million of sales tax in the state’s real estate industry leads to a total of $1.26 million of sales tax in the Texas economy. • The real estate industry has the largest proportion of self-employed persons of all industries. • Nearly 552,000 people, including self-employed individuals, were working in the Texas real estate industry in 2007, representing 3.9% of statewide employment. If you include those working in rental and leasing, the number jumps to more than 635,000 or 4.5% of the total. • Texas commercial real estate was valued at more than $251 billion in 2007. Texas industrial real estate was valued at more than $85 billion. • The state’s real estate industry paid 18.7% of total Texas business taxes in 2007. • Real estate owners paid an estimated $24 billion in school taxes in 2007. With these facts and figure it is easy to see why Texas real estate is such a huge driving force in the State economy and why it is not going to experience more than a hiccup in the slowing general economy before it picks up steam again.
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