Finding a strong market to invest in is as simple as looking for population growth, job growth, and a diverse economy. That’s why some of the smartest minds in real estate are focused on the long term strength of Dallas, TX.
POPULATION GROWTH: The Dallas-Fort Worth area’s population has grown by nearly 1.3 million from 2000 -2009. That is more than any other metropolitan area in the United States. The Dallas–Fort Worth–Arlington MSA is the largest metropolitan area in Texas, the largest in the South, the fourth-largest in the United States (SOURCE: Wikipedia on DFW).
The Dallas, TX metro is forecasted to add 4 million new people from 2010 – 2040 according to the Texas Data Center and the North Texas Water Board. That’s one new person every 4 minutes!!! In 2009, the population of Texas grew by 231,539. That is more growth than Florida, Arizona, California, Nevada and Colorado, combined.
A demographer at the Brookings Institution attributes the population growth to a more diversified economy in Texas and more conservative lending practices during the real estate boom. When combined with the state’s steady growth earlier in the decade, Texas is projected to receive three new seats in Congress. (SOURCE: Recession Cuts Migration to Sun Belt, New Figures Show New York Times).
JOB GROWTH: “Diversified industry and relatively stable housing fundamentals have provided local residents with comparatively secure standards of living. Cities where home prices don’t fluctuate wildly are particularly well-positioned to ride out this recession, because they were spared the domino effect of foreclosures, lost jobs and lost productivity. Rather than chasing rising home prices or apparently plentiful jobs in one-industry towns, families looking for long-term economic stability should seek spots where industry is diverse and housing price shifts are benign.” (America’s Fastest Recovering Cities – Forbes Magazine) According to the US Bureau of Labor & Statistics, Dallas job growth is twice the national average. An educated populace and a cost of living below the national average, make Dallas enticing to companies seeking a lower cost but highly qualified workforce.
DIVERSE ECONOMY: The Dallas economy is primarily based on banking, commerce, telecommunications, computer technology, energy, and transportation. North Texas has 28% of the state’s workforce, employing more than 350,000 in healthcare, 225,000 in high-tech and 68,000 aviation-related jobs. North Texas has 20 colleges and universities, 17 graduate schools, 3 medical/dental schools, 2 law schools and 20 community college campuses (SOURCE: North Texas Commission). The Dallas/Fort Worth Metroplex is home to over 10,000 corporate headquarters making it the largest concentration of corporate headquarters in the United States. The Dallas metro area is home to 25 FORTUNE 500 company headquarters and 7 FORTUNE Global 500 companies which bring more than $819 billion in revenue to North Texas. (Source: Fortune Magazine 2009)
- WORLD CENTER OF AVIATION
- DFW International Airport is the third busiest airport in the world
- There are more than 850 aviation-related businesses in North Texas – more than any other area of its size in the world
- There are more than 68,000 documented aviation-related jobs in the region
- LOGISTICS HUB
- DFW is a major logistics hub and has the lowest distribution costs to the top 50 U.S. consumer markets of any region
- Since the passage of NAFTA, DFW trade to Mexico and Canada has more than doubled – in large part due to the proximity of Interstate 35 – the NAFTA Superhighway
- FINANCIAL AND BANKING CENTER
- North Texas is a major financial center and is home to one of 12 regional Federal Reserve Banks, as well as several regional bank offices and corporate headquarters to Comerica
- HIGH TECHNOLOGY CENTER
- North Texas is a national and global leader in the high-tech sector, and 8.3% of the region’s total 2.7 million labor force is employed in high-tech fields, according to the Metroplex Technology Business Council
- North Texas’ 225,000 high-tech workers account for 52% of Texas’ total technology workforce, and North Texas boasts 6,215 high-tech firms
- Although the high-tech industry employs 8.3% of the North Texas workforce, the high-tech sector accounts for nearly 13% of wages paid to North Texas workers – indicating the relatively high-paying nature of these sophisticated jobs
- RETAIL CENTER
- North Texas is the 10th largest retail market in the country. Dallas Market Center, the world’s most complete wholesale marketplace, hosts approximately 50 markets each year attended by more than 200,000 retail buyers from all 50 states and 84 countries, and conducts more than $8 billion in wholesale sales annually
- HEALTH CARE EXCELLENCE
- North Texas is known for its extensive state-of-the-art health care facilities with more than 90 major hospitals and two major medical schools
- Health care is one of the largest and fastest growing industries in the Dallas-Fort Worth region with more than 350,000 health care jobs
- No personal or corporate state income tax
- Maximum state and city sales tax of 8.25%
QUALITY OF LIFE:
- North Texas features world-class athletes, teams and sports facilities, including the new Cowboys Stadium, host of the 2010 NBA All Star Game, 2010 World Series, 2011 Super Bowl XLV, and the NCAA Men’s Final Four in 2014
- The region is growing as an arts hub with 7.9 million people attending arts and culture events annually
- Low cost of living
- Affordable housing
- Plentiful water
- Public transportation and excellent highway system
- Strong k-12 schools and universities
- Centrally located
(SOURCE: North Texas Commission)
David Campbell is a real estate developer, investor, author, educator and a regular contributor to The Real Estate Guys™ Radio Show.
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