Texas Real Estate third most important industry in Texas

According to the latest data from the US Bureau of Economic Analysis Real Estate is the third most important private industry in Texas. Typically Real Estate accounts for between 7.8 and 12 per cent of the  State’s Gross Domestic Product (GDP).

The importance of Texas Real Estate activity in the Lone Star State cuts across State Boundary lines and affects the economy in other parts of the country. The complex web of inter-related finances which reflects the state of our modern economy means that what happens in Texas affects the rest of the USA and, more than likely, the rest of the world.

For example, highlights of the US Bureau’s report highlight the fact that:

• Every $1 million dollar of revenue in the Texas Real Estate Industry generates half a million dollars of revenue in other pasts of the State economy and impacts on out of State economies for at least a quarter of that.
• Every $1 million dollars of revenue generated by the Texas Real Estate Industry generates 5.16 jobs in the Texas Real Estate industry and five jobs in other industries in the State.
• Every $1 million dollars of sales tax in the Texas Real Estate industry leads to $1.26 million dollars of sales tax revenue in other related industries in the Lone Star state which are impacted upon by its real estate.
• The Texas Real Estate industry has the highest proportion of self-employed people of all industries.
• Over half a million people work in the Texas Real Estate industry which represents 3.9 per cent of statewide employment.
• Texas commercial real estate was valued in 2007 at $251 billion dollars. Texas industrial real estate was valued at $85 billion.
• The Real Estate industry in Texas is responsible for nearly 20% of all business taxes revenue for the entire state.
• Texas real estate owners paid an estimated $24 billion in school tax fees in 2007.

The amount of money generated by real estate in Texas carries a certain weight with out of State economies. The Texas real estate tax revenue enables the State government to remain solvent and do business with other agencies in other States supporting their less than robust economies.

The interwoven world we live in means that a robust Texas real estate scene has the potential to begin to energise the US real estate scene and, arguably, that of the rest of the world.

 

The Texas Real Estate magazine news articles are put together by an expert team of real estate and finance analysts who use both anecdotal and hard data to look at the indicators within the market and make predictions or buck trends.