The population boom that is saving Texas
By: Nicholas Ratcliff
The economy of Texas has recovered significantly from the COVID-19 pandemic.
The Federal Reserve Bank of Dallas recently hosted a Zoom presentation that outlined the current economic growth of Texas. They discussed a variety of topics that have impacted the Texas economy during their presentation.
The presentation started with an overview on COVID-19 and how it affected Texas’s economy.
During the pandemic, Texas was one of the four states that exceeded their pre-pandemic levels of employment and increased its employment rate by 2%.
This growth was fueled by domestic migration which accelerated during the pandemic. Before the pandemic in 2019, 108,530 people moved to Texas. The year after the pandemic started, 173,813 people decided to relocate to Texas.
This influx of people allowed Texas corporations to constantly fill the roles they need within their company and helped increase employment rates.
The average price of a house soared to the highest it has been in more than 20 years during the pandemic. This was true for Texas as well; however, it did remain below average compared to the rest of the United States.
In 2021, the average price of a home across the U.S. was around $370,000. Texas managed to keep its average home cost at just $325,000. This has allowed Texas to remain affordable for the vast majority of Americans, even though housing prices were still increasing.
2022 has marked significant progress for Texas as the employment forecast is expected to grow another 2-4%. The state will still be facing a couple of key issues that may limit its economy’s ability to grow.
According to the National Association of Realtors 2022 Housing Forecast, “Home sales will hit their highest level in 16 years, rising 6.6 percent year- over-year.”
While this will benefit Texans who already own a home, first time buyers may struggle to afford their first home. This may limit the amount of people who domestically can afford to move to Texas, which may slow down our rising employment rate.
Working from home has increased since the start of the pandemic, and according to the National Association of Realtors, this may be a good thing.
The average price of a home in Texas tends to decrease the further from a metropolitan area you get. This may allow first time buyers to own an affordable home while still working for a company that is based in a city.
Even though Texas will face some economic challenges in the coming years, its ability to maintain employment despite the pandemic has put it in a better place than most states.
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