By Jim McAlister IV
President & Chief Executive Officer
This past October, I spoke at The Real Estate Private Equity Forum on Land & Homebuilding held in Las Vegas. I want to share with you my takeaways from the forum as well as the overwhelming good news about the land and homebuilding business in Texas.
There were a number of panels with economists, investors, builders and bankers from all over the country professing their particular expertise. The panel in which I shared my insights was “Looking at Today’s Macroeconomics: The Private Equity Forum on Where Are You Investing in the Land/Homebuilding Food Chain.”
Overall, most topics discussed at the event were relevant and interesting as the speakers were passionate about their particular niche in capitalizing on the sector. Although each had a different angle to accomplish this task, the common theme heard was that they all wanted to conduct business in Texas!
The speakers cited the following reasons about why Texas is great for business.
1. Jobs– Texas is leading the U.S. in job creation and low unemployment.
2. Population Growth– Texas is projected to double in size through 2040.
3. Healthy Real Estate Fundamentals– Texas never experienced the boom and bust of the Great Recession, and its major cities are at or near the top of all homebuilding metrics.
4. Business-Friendly Government – Texas is a low-regulation state and proactively works with large employers to attract them to the area.
5. Low Cost of Living – Texas is well known for its affordable housing and no state income tax.
The Texas model of a business-friendly government with low taxation has been and will continue to attract residents from across the country and globe in search of a less expensive and better quality of life.
There’s a bumper sticker sometimes seen around the state that proclaims, I wasn’t born in Texas, but I got here as fast as I could. I think we’ll be seeing that sticker more and more in the years to come.