Category: News

“It was really about affordable housing.”

Toyota LogoSure, the low taxes, relaxed regulatory environment and Central Time Zone are nice. But none of those factors tops the list of reasons Toyota decided to plant its North American headquarters in Plano, bringing in more than 3,000 jobs, mostly from California.

The main driver of Toyota’s move from Torrance, California, was housing costs, according to Albert Niemi Jr., dean of the Cox School of Business at Southern Methodist University, who has inside knowledge about the move. Niemi shared the anecdote at an SMU Cox Economic Outlook Panel on Friday morning.

“It wasn’t so much that we don’t tax income,” he said. “It was really about affordable housing. That’s what started the conversation. They had focus groups with their employees. Their people said, ‘We’re willing to move. We just want to live the American Dream.’”

Toyota did the math and found that housing costs in Los Angeles County, where Torrance is located, are three times per square foot the cost of a house in Dallas-Fort Worth.

“They’re paying the same salary,” Niemi said. “So in real terms, they’re going to triple the affordability of housing they can buy if they move to Texas.”

Read the entire article at the Dallas Business Journal.

Texas Keeps Getting Bigger – “Four Texas metro areas together added more people last year than any state in the country”

Texas Keeps Getting BiggerU.S. Census Bureau – MARCH 24, 2016 —

Four Texas metro areas together added more people last year than any state in the country except for Texas as a whole, according to new U.S. Census Bureau population estimates released today. The population in these four metro areas increased by more than 400,000 people from July 1, 2014, to July 1, 2015.

The Houston-The Woodlands-Sugar Land and Dallas-Fort Worth-Arlington metro areas added about 159,000 and 145,000 residents, respectively — the largest gains of any metro areas in the nation. Two additional Texas metro areas adjacent to each other — Austin-Round Rock and San Antonio-New Braunfels — were each also among the 16 nationwide to gain 50,000 or more people over the period.

These four Texas metro areas collectively added about 412,000 people. Texas as a whole gained about 490,000.

The statistics released today provide population estimates for our nation’s 381 metropolitan statistical areas, 536 micropolitan statistical areas and 3,142 counties.

Eight counties drove Texas’ metro area growth and were among the 20 counties nationwide that gained the most population between 2014 and 2015. Altogether, they added 306,736 people:

  • The Dallas metro area contained four of these counties: Tarrant, Dallas, Collin and Denton.
  • The Houston metro area contained two: Harris, which led the nation by gaining more than 90,000 people, and Fort Bend.
  • Bexar, in the San Antonio metro area.
  • Travis, in the Austin metro area.

AMERICA’S 100 LARGEST LANDOWNERS

Land Report 100While not related to the relocation industry, I found this very interesting and wanted to share it with everyone.  I hope you enjoy.

Few material possessions speak to “having” as do acres upon acres of one’s own land. Land to ranch, to fish, to hunt, to farm, to grow timber, or merely to wander over or gaze upon is like almost nothing else. It concretizes place-ness in most of our minds, and it’s the finite raw material without which we’d have no home building or residential development.

Here’s the 2015 Land Report 100, a 5th annual analysis that profiles America’s 100 leading individual landowners. It’s a production and publication of Fay Ranches Inc., a land broker.

Researched by Jeremiah Jensen, Lisa Martin, Katy Richardson, and Roxanna Thompson, the piece profiles John Malone, Ted Turner, and the 98 other families, dynasties, and individuals who own the millions of acres of America’s most pristine tracts, whatever the purpose.

Southern California Market Summary

Mobility Magazine of Worldwide ERC, December 2015

By Craig Gilbert, CRP, SRA, RAC Founding Member

Southern California consists of eight counties, from Santa Barbara in the north to San Diego in the south, and from the Pacific Ocean on the west to Nevada and Arizona on the east. This report focuses on the five most prominent counties:  Los Angeles, Orange, San Diego, Riverside, and San Bernardino. These are also the five most populous counties in the state, with a total combined population of almost 21 million.

LOOKING BACK

Housing prices increased throughout Southern California from approximately 1997 through mid-2006. The market peaked at varying times geographically and by price range. This peak was followed by a steep decline in prices. The credit crisis of 2008 and lack of credit for potential homebuyers, together with a weakened economic base during the Great Recession, led to a high number of foreclosures and short sales. The Inland Empire (Riverside and San Bernardino counties) was among the hardest hit and experienced the greatest percentage of decline in prices. No areas of Southern California were completely immune from economic problems. Some of the older, lower-priced, lower-income coastal areas also experienced significant price depreciation compared to more affluent areas nearby. Housing prices bottomed between 2009 and 2011, differing by geographic location and price range. The coastal and higher-income areas fared better than the Inland Empire and the lower-income and lower-priced areas. The coastal areas had a lower percentage of decline and recovered more quickly. This was related primarily to employment growth and stability. All counties experienced price appreciation from 2012–13 to 2015. Current prices are still below previous market peak prices, and none of the counties in Southern California has yet achieved median prices equal to or higher than previous market highs.Market at a Glance

The annual percentage of change in median housing prices for all counties peaked from 2013 to 2014, with annual increases between 10.3 percent in Orange County and 19.2 percent in San Bernardino County. However, although housing prices have continued to appreciate, the rate of appreciation has decelerated significantly in all counties, from 0.5 percent in San Diego County to 7.8 percent in San Bernardino County for the most recent period.

LOOKING FORWARD

The California Association of Realtors has been computing a housing affordability index (HAI) for all counties since 1991. The HAI, which represents the percentage of households that can afford to purchase the median-priced home based on traditional assumptions, is a function of median price, income, down payment, mortgage rates, and current underwriting standards.

The least affordable period for all areas (2005–2007) was just before the market peaked. The indices ranged from 8 percent in San Diego County to 19 percent in San Bernardino County. The most affordable period for all areas (2011–2012) occurred just as housing prices bottomed. The indices ranged from 39 percent in Orange County to 78 percent in San Bernardino County. The indices have subsequently decreased significantly and currently range from 21 percent in Orange County to 56 percent in San Bernardino County.  All areas have been in a transition from more affordable to less affordable, which is primarily a function of price appreciation.

The most significant economic factor has been a substantial improvement in the economic base. There have been positive changes in both employment and unemployment over the past five years, according to the U.S. Department of Labor. Total number of employed in these five Southern California counties increased by 11 percent. The unemployment rates have declined by approximately 50 percent as employment simultaneously increased. The official unemployment rate in the Los Angeles–Orange County metro area declined from 12.3 percent to 6.4 percent, in the Inland Empire from 13.8 percent to 6.8 percent, and San Diego from 11.1 percent to 5.1 percent.Statistical Snapshot

Household income, however, has been relatively stagnant in most areas, with some exceptions. This factor is quite significant with regard to direction and magnitude of future housing prices. A number of corporations in California have been moving to lower-cost areas of the U.S. or offshoring work, in part due to unaffordable housing and the high cost of living and doing business in the state. Toyota Motor Co., for example, is in the process of moving its U.S. headquarters from Torrance (Los Angeles County) to Plano, Texas, along with about 3,000 medium- to high-value-added marketing and finance jobs.

Mortgage rates were at historic lows around the fourth quarter of 2012 (about 3.3 percent), increased slightly through the third quarter of 2013 (about 4.5 percent), decreased through the second quarter of 2015 (about 3.7 percent), and have subsequently increased slightly to about 4.0 percent. Rates will likely remain within 50 basis points of current levels for the near future. This is a favorable factor for buyers and sellers. The favorable year-round climate also has historically contributed to housing demand and desirability of Southern California.

Housing at or near the median price, and those not more than about 20 percent above the median, will likely continue to appreciate in the foreseeable future in most areas. Higher-priced properties, primarily about 25 percent or more above median, are likely to remain stable at best, with a more probable decrease in price due to current and impending oversupply.

The rate of price appreciation has recently decelerated due to a decline in affordability, especially in the higher-priced areas. Housing inventory of 2.5 months (San Diego) suggests a slightly undersupplied market. Housing supply and demand are more balanced in Los Angeles, Orange, and Riverside counties, at 3.3 to 3.9 months’ supply. San Bernardino appears to be moving from a balanced to an oversupplied market at 4.4 months’ inventory. The availability of mortgage financing is a significant factor in the mortgage market. Underwriting standards are quite tight to avoid the pitfalls that led to the 2008 credit crisis.

Craig Gilbert, CRP, SRA, is a professional appraiser and real estate consultant based in Huntington Beach, California, and a co-founder of RAC (Relocation Appraisers and Consultants). He can be reached at +1 714 847 8087 or craig@craiggilbert.net.

Here’s the main reason Toyota is moving from California to Texas

Toyota Logo“The main driver of Toyota’s move from Torrance, California, was housing costs, according to Albert Niemi Jr., dean of the Cox School of Business at Southern Methodist University, who has inside knowledge about the move.”

My wife and I watch “Million Dollar Listing Los Angeles” on a regular basis.  This is likely very true.

If you haven’t watched it, you should take a look.  It is very entertaining.   

See the entire article at the Dallas Business Journal.

DBJ: The fastest-growing ZIP codes in North Texas

Dallas is thpage_rac_conferencee third fastest-growing city in the United States, according to Forbes list of America’s 20 Fastest-Growing Cities 2015.

Residents are moving in but they are also moving to the north of the Metroplex. Collin County holds 36 percent of new citizens in the ranking ZIP codes, followed by Denton County with 28 percent of the ZIPs, 20 percent in Tarrant County, 12 percent in Dallas County and only 4 percent of the new denizens reside in Rockwall County.

Using data from geographic information systems provider Esri’s updated estimates, forecasted variables and U.S. Census data for all ZIP codes, I examined the North Texas areas zipping to the front of population growth in the region.

Take a look, to see the growth rates and projections for various ZIPS.

The way we live, city by city.

the way we live

This chart is based on data from the 2014 American Community Survey concerning the characteristics of occupied housing.

It offers a very interesting look at the preferred housing in the largest cities across the United States.

To see more cities and how your area compares, go to the article in the Washington Post.

Texas home sales and prices up about 7%

 

gallery_03REAL ESTATE CENTER:  Latest Multiple Listing Service (MLS) data show Texas home sales had a 7% year-over-year increase last month while the median price was up 7.4%.
According to August 2015 Texas MLS data, 29,685 homes were sold last month, almost 1,900 more than a year ago but about 1,500 fewer than in July.
The median price was $203,300 compared with $189,300 a year ago and $204,700 in July.