Not everything is bigger in Texas, but the employment gains certainly are! Between April 2011 and April 2012, Dallas employment rose 1.8%, making it the second biggest employment leap in the United States and well above the 1.3% national average. This is great news for real estate.
The only region to do better than Dallas was our very own Houston at 3.1%, giving Texas metropolitan areas the number one and number two spots for employment gain in the entire country. This is promising and suggests that what we've been feeling is true: things are getting better.
As you've probably guessed, employment rates have a direct effect on the real estate market of any region. There are the obvious reasons, like employment leading to income surplus, which leads to being able to make property purchases. But there are a couple less obvious impacts as well. Let's talk about those.
The saying, "we're all in this together" really rings true in a real estate market. It may not be immediately obvious how the kid earning money with a paper route is in the grand scheme of things, but every cent she makes strengthens the entire community. The more income your neighbor makes, the more disposable income s/he has to invest in your product or service. The more people invest, the higher the demand, and the less likely it is that layoffs will occur. The better your neighbor is doing, the better you're doing and, ultimately, the better your real estate market is doing.
Another direct effect of unemployment is a higher rate of crime. The less desperate your community members are, the less desperately they act, and the safer your property is. If a community is targeted by higher incidences of crime, property values tend to plummet, attracting lower income individuals and increasing the likelihood of criminal activity. It's a cyclical slippery slope and many areas never recover.
Given the recent employment gains in Dallas and Houston, this is a great time to be investing in Texas real estate. Employment rates are one of the big considerations in estimating property value, which suggests Texas real estate values may be on the rise. For savvy buyers, now is the time to beat the market and purchase Dallas property before values increase and rates rise again.