Property values have been on the rise throughout the nation as availability continues to become more limited. The combination from both a slowdown of overall residential property development along with the influx of younger buyers entering the market has pushed home values to all-time highs in many locations across the nation. It seems no area is outside the impact of these trends where the market is showing increases in property values all the way up to 10% growth in just under a year in both top metro and suburban areas.
Specifically, in Texas where the last five years has seen great deals of high volume increases in both residential and commercial, new findings are showing property values have increased on average 8-10% from 2018. This includes more affluent areas like that of Plano where an increase of property values rose $2.5 billion in taxable values.
With this information, residential areas like those noted in Texas are still being considered sellers markets. This means property buyers are likely paying a premium when purchasing their home in what is still being considered the height of market increases. Due to these trends many residents are turning to alternatives that will push off home buying until prices level out, whether that be later this year, next year or in the unforeseeable future.
Some of today’s thriving US cities are getting to the top through not only supporting large global corporations but also through their growing network of small businesses. A recent ranking by online resource Biz2Credit highlights this fact as they comprised their annual report for uncovering the best cities in the nation for small businesses in 2019. On the list were those cities familiar to widespread economic success including California’s San Diego and Los Angeles as well as NYC and Boston.
In order to calculate the ranking, the online analyst used its tool BizAnalyzer to uncover the factors behind sustaining a successful business climate that supports and fosters growth. Touching on a collective view of the business environment in each city location, a key category analyzed focused on the cost of doing business. Things like taxes, property costs, permits, etc. all impact the cost of starting and running a business and helped to organize how each location ranked among affordability when compared to other cities in the running.
This baseline information was then analyzed against the overall annual revenues for each location’s small business network in which the report used a combined pool of 30K organizations for running the comparison. These companies were all those that fit into what the SBA defines as small businesses; which in the report’s case narrowed it down to those organizations with 250 or less employees making no more than $10 million in annual revenue that have been operating for at least a year.
Weighing the averages across these companies in both affordability and revenue, the report also looked at the rate of which small business creation was growing in each metro area along with the local talent pool and its ability to sustain growth. With nearly 59 million people or 48% of the nation’s private workforce employed by small businesses – understanding the health of each area’s employee network is a critical factor keeping the United States’ metros growing and fueling small businesses.
According to recent data released by the U.S. Census Bureau, the Dallas Worth Forth-Arlington, area gained more residents last year than any other metro in the nation. Growing over 130,000 in population from 2017 to 2018, the metro now stands the fourth largest in the country with over 7.5 million residents. When compared to other large cities such as Boston and NYC who actually lost residents in 2018, the increase is substantial coming in at over 30% more new residents than the second largest growing metro of Phoenix, Arizona; and the population spike does not seem to be slowing down.
Although there has been a large draw from residents in state the increases are mostly from the nation’s other 49 states who are attracted to the economic opportunities and community environment offered in the DFW area. “Of its biggest advantages; job creation, housing access and affordability as well as diverse industrialization has attracted more transplants to the state than any other in the US.” shares longtime Dallas resident and entrepreneur Marcus Hiles who has experienced and tapped into new growth opportunities in the state throughout his 30+ year career as a leading Texas property developer. And it’s not just local figures who are recognizes the value the lone star state has to offer.
Texas-based Western Rim Properties will be opening the doors to its three new spring development projects in the next upcoming weeks. Established for the last 30 years across the Texas rental real estate market, the firm that has been growing its presence across the state’s top cities in areas like Dallas, San Antonio, Austin and Houston now has nearly 20 properties and over 20,000 rental units. Providing popular luxury apartment style rentals, the spring projects have been in the works for over a year and a half and will be positioned around central rental population segments who live outside of city limits. These surrounding city locations where renter populations reside have a growing network of both residential and business development and welcome medium to upper class tenants who are looking to benefit from community run suburbs that come backed with the accessibility of city amenities.
North Texas has been a focus location for the Western Rim’s past and upcoming developments with two of the spring developments positioned in the popular Northern Texas City of Farmers Branch. One of the fastest-growing Texas cities, residents are coming from both in-state and out of state to this area to benefit from everything the growing suburb has to offer. The properties will include WRP’s The Mansions and The Towers style rentals which have existing communities across the state and provide the best in upscale living accommodations. “Our projects focus on offering renters the flexibility they want in a rental property matched with the benefits found in upper class housing. We have selected Farmers Branch to be the site of two of our spring projects to tap into the opportunities growing in the area from younger families and professionals looking for community focused, luxury rentals,” shares CEO and founder of Western Rim, Marcus Hiles.
The wish list and must-haves of renters and home buyers in today’s market has drastically changed in recent years. Most seen within the nation’s top surrounding metro areas, residents are putting importance on not only their indoor living area but also their outdoor accommodations.
Across the country this growing demand for easily accessible and vast green space; even in congested, city-like areas is beginning to shape future community development.
Two example locations are suburb areas that border two of Texas’ top cities: San Antonio and Dallas.
Recognized as being some of the best places to live in the state, the suburbs of Frisco and Riverside, Texas have been recognized as offering some of the best in balanced living; helping the area’s residents sustain healthy, active lifestyles.
To supplement this importance on community accommodations that promote healthy living, future developments along with state-funded programs are getting creative to maximize this selling point.
With over 500,000 new residents coming to Texas each year, new housing development is being forced to keep up. The share of residential units added as a proportion of the state’s population shows that Texas grew its housing supply by over 10 percent for every household during the period, more than double that of California and New York. Some of the top Texas metros and their surrounding areas including Dallas, Houston, Austin, and San Antonio have held some of the largest increases in new residential growth across the nation in recent years. San Antonio was the Texas city with the largest population gain from July 2016 to 2018, adding over 60 people every day – making it the nation’s seventh-largest city.
With this demand for housing outweighing the available properties in the state’s most desired city and suburban locations, an influx in both rental costs and home market appreciation is on the rise. Developers and property firms are more focused than ever on breaking new ground to make room for new and relocated renters and buyers.
Dallas-Fort Worth-based Western Rim Properties is focusing its expansion in some of these top surrounding city locations with three new projects coming in summer of 2019 to areas like Rowlett and Farmers Branch, and San Antonio. With its communities serving the growing need for affordable rental properties that provide some of the area’s highest quality accommodations, the development locations are also positioned where the market is headed. With a booming economy and job market that helped land Dallas as one of the top 10 home markets in the nation, it’s no surprise costs are increasing in the city and more people are looking for affordable alternatives near this leading location.
Next week marks the annual National Small Business week that is run by the U.S. Small Business Association. Kicking off May 5th – 11th, the event that has been recognized for more than 50 years will highlight the impact being made to the country’s economy by today’s small business owners, entrepreneurs and other key professionals across all 50 states. Set to be stationed out of Washington D.C. this year, there will be a series of sessions, speakers and award ceremonies that honor those in the SMB community helping to create change.
The organizations in this network are defined as those businesses with 500 or less employees and can span from companies that support local markets, national and even global industries. Regardless of their size, the Small Business Association reports that nearly half of all Americans work for small businesses, a critical component and major contributor to the strength of our nation’s economy. Whether through local, owner operated businesses to those supporting the flow of goods and services across the country and world, there are over 30 million small businesses across the U.S. alone. The influence these organizations have on our national and global markets is a point the Small Business Associate reflects to be critical towards maintaining our economic competitiveness now and in the future.
California has had a historical pull on establishing success through business growth and expansion in the state. Its key position in terms of national economy has continued to attract both well-established and new organizations to the west coast leader who are looking to tap into commercial success opportunities. It is the location where many of the top businesses we think about today were born out of. Tech giants like Apple, Google, Facebook, and HP as well as organizations who have turned to California after business operations get going. An extensive list of widely known names such as Disney, Oracle, Intel, Chevron, Cisco Systems and the like have moved central headquarters to the top city locations in the state.
What was a magnet for businesses looking to tap into booming industry networks in the state’s top ranking cities is now starting to take a back seat to other states doing things differently. “The topic of affordability has always been one that puts California behind other untapped locations that do not exceed the average median income required of today’s populations to sustain an middle to upper class lifestyle when living in the state.” shares entrepreneur Marcus Hiles who has established a thriving property development firm in one of California’s main competition, Texas. Being too centralized is another factor the state is facing, diversity is a big focus in today’s organizations who want to ensure they are tapping into new talent, resources and commercial networks that aren’t already operating in a crowded space.
A new report by rental industry news network, Apartment List was recently released for its 2019 ranking of the country’s most affordable rental markets. Looking at the largest 100 cities in the US, the report aims to target the spectrum of rental rates that span from top market prices to more affordable options. The report based its findings on the average rental price in each city as collected from last quarter of 2018. Taking this information and weighing it against information from the Bureau of Labor Statistics on median annual income, each location’s rent vs income rates were determined.
To understand true affordability in rental markets across the country, guidelines set by the U.S. Department Housing and Urban Development were used that categorize rents costing tenants more than 30% of their annual income as cost-burdening and harder to sustain. Understanding the areas where high salaries are necessary to live and rent along with those that are easier to afford, the 2019 report reflects much from that of last year’s results. With the factors driving rent costs remaining consistent over the last two years, renters are still burdened and benefiting from the same locations of last year.
With news hitting late last year on Amazon’s decision to move forward with New York as one of the locations for its HQ2, investors quickly responded with kicking off development across the city. The project that was set to begin in 2019 was planned in part for the Long Island area and was expected to bring over 20k new jobs to the city. The goal of the project’s plan to move into NY was to not only tap into the city’s well-established infrastructure but also build out more urbanization to areas outside of the main city like Long Island and Queens.
New York wasn’t the final location both residents and investors thought would make the cut. “With other cities considered including Columbus, Chicago, Indianapolis, and Atlanta, many felt the online e-commerce giant would take its influence and power to an up and coming area that could benefit substantially from the project to establish a presence in the national economy. Though, it was more important to Amazon executives and investors that the project timeline was reduced with a location that could sustain and support rapid growth- like New York.” shares Dallas-based property developer and entrepreneur, Marcus Hiles.