In our previous article, we shared at length the economic windfall and residential real estate impact of major corporations in the state of Texas. This is part two of our series on how many multinational corporations looking for favorable business conditions along with ample scope for expansion to choose Texas as their destination of choice. Texas is home to a plethora of noteworthy companies across diverse industries such as technology, energy, banking, and manufacturing.
So, if you are a foreign investor, developer or retirees interested in Texan economy and its real estate market, go through this article to understand the worth of this market. Let’s dive into it!
Corporations Expanding in Texas
Firms including Tesla, Oracle, and Hewlett-Packard Enterprise decided to plant roots in Texas, having a profound impact on the local economy and real estate markets of Texan cities like Houston, Dallas, Austin, San Antonio, and Corpus Christi. However, if you are from Texas, you may already know this. What we need to now take into consideration is how new corporations are reshaping the landscape and providing an additional boost to the real estate market. Most notably, unless you have been living under a rock, Tesla’s move into the Texas market has been especially momentous. Elon Musk’s Gigafactory, expected to build batteries and electric vehicles in Austin, is anticipated to stimulate substantial investment, leading to economic growth in the area while increasing demand for residential properties.
Similarly, Oracle’s relaunching of its headquarters from California to Austin, endorsed by Texas’ business-friendly environment coupled with tax policies, has resulted in increased investment along with job creation, contributing to an elevated demand for housing. Corporations in Texas such as Hewlett-Packard Enterprise find it smart to locate their headquarters in Texas because of its favorable business conditions and easy access to highly skilled workers. Altogether, these corporations are contributing considerably to growth across various industries, leading Texans towards better work opportunities while generating effects that have reverberated throughout their corresponding real estate markets.
HPE’s presence has led to significant changes in the Texas economy, resulting in a rise in the population along with an increase in economic activity and employment prospects, attracting numerous firms, suppliers, and service providers into the area. There has been a massive spike in demands regarding housing, particularly those around the headquarters region. This results in an increase in residential development where new housing complexes categorically to the growing population of professionals linked with HPE and other companies.
The relocation of McKesson Corporation’s headquarters from San Francisco to Irving, Texas, had positive effects on the community. The move led to an increase in job opportunities and attracted talented individuals to the area, while also boosting the Texas economy. This growth had a direct impact on Irving’s residential real estate market, with increased employment rates leading to a rise in demand for housing and subsequently increasing home prices and rental rates.
CBRE Group extended its services throughout Texas, with Dallas particularly benefiting from its investment services. This drew in real estate investors, developers, and businesses to the area, boosting commercial activity in Dallas’ commercial locations. As a result, regional business activities improved along with the general economy.
Kubota Tractor Corporation’s shift from California to Grapevine, Texas, had positive economic effects such as job creation, investment growth, and infrastructure development that boosted the Grapevine area’s real estate market sector. The presence of relocated professionals alongside their employees increased demand for nearby suburban accommodations that catered exclusively to them. This subsequently raised house prices.
Vistra Energy has played a vital role in reinforcing regional economic growth while creating jobs for many Americans. Their employees’ need for homes near their workplace also elevated demand for residential real estate properties, which resulted in amplified housing costs and substantial competition affecting rental markets across Dallas and its surrounding regions. For years now, Texas has remained attractive to businesses looking forward to relocating or expanding their operations because of favorable policies.
Accessibility to Texan markets by major companies has brought immense economic benefits such as job creation, the provision of new skills, and the injection of funds into some of the most vibrant cities in Texas. These massive corporations in Texas have altered the residential real estate industry by fueling augmented demand for housing, which has resulted in escalated property values as well as intense competition within specific locations. A
The Bottom Line…
Texan policymakers must strive to develop and maintain favorable conditions that will continue to attract corporate organizations to the state. Different factions in society hold conflicting reactions to the president’s recent decree. While some maintain reservations about his comprehensive grasp of pertinent knowledge and data pertaining to this issue, others laud him for demonstrating courage in taking a tough stance on sensitive topics. Regardless of personal opinion, it seems certain that there will be far-reaching repercussions from this controversial policy change.
Our next article will be a continuation of this series. We will come up with some statistical data to understand the impact of major corporations in the residential real estate market.
For a deeper understanding of real estate investment and to explore the benefits of our investment products in generating passive income, we invite you to contact our team. To arrange a free consultation, please schedule a call with us by clicking HERE.
LEARN TO INVEST WITH US.
We accept queries from accredited domestic and foreign investors seeking single and small multifamily investment opportunities.
