Real Estate Wealth Supports Texas Economy

Dated: October 15 2012

Views: 7397

COLLEGE STATION, Tex. (Real Estate Center) – Texas is wealthy, and real estate is a big reason.


Texas’ 2011 real estate wealth was valued at $1.6 trillion or $65,432 worth of real estate for every Texan, regardless of age. That’s up 86.7 percent from the $35,055 in 1997.


Dr. Ali Anari, research economist with the Real Estate Center (REC) at Texas A&M University, monitors the relative importance of the state’s real estate industry and the resulting wealth it creates. His latest article, “Texas Treasure,” is in the October issue of Tierra Grande magazine, REC’s flagship periodical.


Real estate is the state’s second largest industry. According to Anari, the 2011 Texas real estate industry accounted for 8.4 percent of the state’s gross domestic product (GDP). Only manufacturing at 14.7 percent of GDP is larger.


“Real estate wealth comprises single-family residences, multifamily residences, commercial properties, industrial properties, mineral real estate, utility company properties, rural acreage and vacant lots,” he said.


More than half (56.3 percent) of the state’s real estate treasure is in single-family housing. Texas’ 2011 single-family residential wealth totaled $945.1 billion. Multifamily residential wealth was $85.1 billion. Total 2011 commercial real estate wealth amounted to almost $279 billion.


Also in the 2011 state treasure chest: industrial real estate ($95 billion), mineral real estate ($106 billion), utility company properties ($50 billion), rural acreage ($80.3 billion) and vacant lots ($39.5 billion).


Including the self-employed, 521,684 Texans worked in real estate in 2011, some 3.6 percent of total statewide employment. The largest proportion of self-employed Texans are in real estate. In 2010, the four largest Texas metropolitan areas accounted for a majority (81.4 percent) of real estate employment.


Anari says that every $1 million of Texas real estate revenue generates:

·         more than $500,000 in revenue elsewhere in the state economy;

·         5.2 real estate jobs; and

·         five jobs in other industries.

“Taxes paid by the real estate industry accounted for 14.8 percent of total Texas business taxes in 2009,” said Anari. “Texas’ property tax revenue that year was more than $40 billion or 47.8 percent of state tax revenues; school districts levied $21.7 billion in property taxes, 54.4 percent of the total.”

Latest Blog Posts

May 4 2021 52008 1

HIDDEN FEES TO BE AWARE OF WHEN PURCHASING A HOMEPurchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will

Read More

6 Reasons You Should Never Buy Or Sell A Home Without A Professional Agent

(Manfred Rutz/Getty Images)BUY6 Reasons You Should Never Buy or Sell a Home Without an AgentBy Rachel Stults Feb 4, 2016 It’s a slow Sunday morning. You’ve just brewed your Nespresso

Read More

6 Reasons You Should Never Buy Or Sell A Home Without An Agent

6 Reasons You Should Never Buy or Sell a Home Without an AgentBy Rachel StultsFeb 4, 2016It’s a slow Sunday morning. You’ve just brewed your Nespresso and popped open your laptop to

Read More

Apr 26 2021 52008 1

WHAT TO REPAIR BEFORE YOU LIST YOUR HOMEWhen you’re getting ready to list your home, it’s of the upmost importance to ensure you are showing it in the best light. Taking time to highlight its

Read More