Texas has seen a massive rise in its popular in the last three years. This has raised many questions about what the cause is. Are there problems in other states driving people to Texas? Or does Texas have some advantage to it that makes it appealing?
Answering this question decisively is difficult, because what is true for one person or group’s reason for moving is going to be untrue or at least different for another person or group.
All the same, it is worth analyzing. So, let’s talk about some of the reasons people are moving to Texas. And more importantly, why so many businesses are interested in passive real estate investing in Texas.
The Pandemic Changed Things
The last two years have been weird, but in particular they have been weird in a very particular way. Since the beginning of the pandemic, nothing has happened that could not have happened before the pandemic. It is just that the pandemic forced a lot of things to bubble to the surface.
So, in a sense, things are not weird. It is just that normalcy is hitting harder and faster than it used to. This is the most obvious in terms of the cost of living. The cost of living constantly increases. Wages do not increase as fast, but that was becoming a problem very slowly…
Until recently. Now, the cost of living in many other states is far too great for many people to afford living in their big cities. And since most career opportunities require high speed internet and access to an office, people are forced to find some big city to live in.
So, they choose Austin or Dallas. Sometimes Houston.
The Market is Booming Late
If you follow the stock market, then you are probably familiar with the fact that things seemed to grow and grow and grow and never stop back in 2021. But now, in 2022, harsh reality has caught up with the economy. Many areas and industries are seeing shrinkage.
But all of this, from the boom to the bust, is news to Texas. The Texas economy was not quite climbing in value like the rest of the country was in 2021. It had a number of issues, from the snowstorm early in the year to issues with rising Covid cases laying people low.
Now that all of that has passed, however, things are in a recovery. Basically what that means is that Texas is experiencing the growth that everyone else was experiencing, just a year late.
For a business that profited heavily from 2021’s massive spike in profits, that means that Texan business is a chance to relive those recent glory days while the rest of the economy has issues.
Regulation Turns Many Businesses Off
Something you may have heard about recently is the conflict between the government of Florida and Disney. This is a deep and strange issue, but it essentially comes down to this: For a long while, Disney was able to occupy the Disney World theme park property as its own city.
It was policed by Disney-owned police, had labor laws written by Disney, and (of course) paid the taxes that Disney wanted to pay. Which is to say, they had poor policing, exploited workers freely, and paid basically no taxes while extracting value from the state of Florida.
Due to the recent economic downturn, Florida saw fit to call Disney on their economic freeloading on Floridian land. To which Disney responded by threatening to move to Texas.
And indeed, many other businesses have seen similar things happen. Cab companies from New York that have recently been told they cannot give out predatory loans, tech companies from California that dislike frequent worker’s rights audits, they all want the government off of their backs. Texas is one of the few places in the country that promises not to control them.
There are Still Unexploited Resources
While normal businesses can make use of Texas’ low cost of living and property values to make cheap niches for themselves, foreign enterprises have long looked at the untapped natural beauty of the state with envy. Laws have been passed recently to allow the state to sell these.
That means that oil magnates from as far away as Sudan have started investing in oil rigs, pumps, pipelines, and refineries. They have also moved in workers to help staff and maintain these facilities. Even the farmland is being sold off, giving opportunity to Chinese mega corporations to turn American soil into value for the southeast Asian economy.
Globalization means that goods, services, and money from these economies are directly stimulating Texas in a lot of ways. The increase in currency is the most obvious aspect of it, but the more subtle benefit is the increase in diversity. That means both products and people.
Complex Invest Strategies are Seeing a Rise
The most uncommon, but still significant, reason why investors are turning to Texas is due to a development outside of Texas: Fractional real estate. This is a method of buying and selling real estate where instead of selling the whole property, you instead sell a percentage of the property.
This means that if someone wants the property, they have to keep paying into it. This is better than selling it outright, as it means sellers can adjust their prices as the transaction goes on.
It is good for the buyer because it means they do not have to spend as much money outright. It is especially beneficial if they, like most businesses, do not have a plan to make use of the property immediately. This allows them to buy at their rate of expansion.
The things motivating both people and businesses to invest in Texas have as much to do with what is going on inside Texas as what is going on outside of it. The important thing to note is that this sort of thing happens all the time, it is just only now happening for both individuals and big businesses. If you want to learn more, go to https://www.teifkerealestate.com/.