Dec. 2006
It's 2006, and the world's population has passed 6.5 billion. It's a number that is really mind-boggling — and one that shows us just how far we've come, no matter where we live.
Here in Texas, we grew by more than two million residents, nearly 10%, in the last five years, for a total population of 22.9 million, according to the Real Estate Center at Texas A&M. And, between the April 2000 and the July 2005 census, just 20 Texas counties accounted for 85% of the state's population growth.
With our growing — and thriving — economy, still-low cost of living, relatively mild weather, and affordable housing prices, Texas has become the state of choice for relocating families. In fact, in Money magazine's annual list of Best Places to Live for 2006, there are nearly 60 Texas cities that were either in the Top 100, or that were considered for the list. One of those is Austin, which was ranked second among the best big cities to live in the country.
According to recent statistics compiled by Scripps Howard News Service, in 1915, when the world's population was just 100 million, 45.9% of Americans owned a home. By 1967, that number had jumped to 63.6%. Now, it's about 68.9%. In Texas, we still have plenty of room to grow. The Texas homeownership rate
is 65.9%.
Nationwide, home prices have also risen as the value of owning a home has increased, and as inflation and demand has affected housing prices. In 1915, the price of an average home was $3,200 ($64,158 in 2006 dollars); in 1967, it was $24,600 ($149,147 in 2006 dollars); and in 2006, it's $290,600.
In Texas, however, those numbers are a lot lower. Even though the U.S. median home price has risen about 33% in the last three years and 13% alone in 2005, Texas prices have remained steady.
From 2002 until 2005, according to the Real Estate Center at Texas A&M, the median price for a home in Texas increased just 9.6% — from $124,500 to about $136,500. And the average house price in Texas wasn't even close to the nationwide average of just over $290,000 — it was $174,100 in 2005.
With interest rates that continue to remain low, wages that continue to increase, and an economy that continues to remain robust, the best investment is still where you live.
Many Texans have purchased first or even second homes, investing in real estate because they can, and because it offers a considerable return on investment.
And, although some experts predict a recession in 2007 for the U.S., those in Texas don't think it will affect us as much as the rest of the country — precisely because we've experienced steady growth in housing and in other areas and don't have some of the problems other states have.
"Even though the United States could have a recession, it's highly possible that Texas won't participate in it," says Mark Dotzour, chief economist for the Real Estate Center at Texas A&M. "The Texas economy is not overheated in the housing market, and we don't have a lot of ailing auto plants in our state. When an economic cycle is near the top, the best plan is to not take on a lot of new debt. If revenues start to flatten out, those who can continue to meet their debt obligations will be around for the next cycle."
