We are currently working on raising joint venture equity for a manufactured housing project in the state of Texas and the transaction has revealed some very interesting statistics about what is happening in the state. Although these trends are intuitive to anyone following the news in the real estate industry, the actual numbers are pretty enlightening. In this insights series post we thought we would share this data with our readers.
Population Growth
According to the Texas Demographic Center, both immigration and migration over the past 3 years has resulted in approximately 1,156,090 new residents to the State of Texas (4% growth)! The largest population increases have been in the Dallas/Fort Worth and Houston MSA’s which make up roughly 62% of the population growth. The Dallas MSA experienced growth of 423,141 people (5.5% increase) and the Houston MSA experienced growth of 294,324 people (4.1% increase).
Housing Shortage
We also looked into the State’s need for housing. Up For Growth, a non-profit organization focused on solving the national housing shortage and affordability crisis cited the State of Texas as having the second worst housing shortage in the country, just behind California. According to their analysis, Texas needs approximately 306,000 more homes than it has.
The State of Texas is experiencing both rapid population growth and a significant shortage of housing units, which could make for attractive joint venture real estate investment opportunities.