There’s been a wave of business professionals making the move from California to Texas, and real estate investors are no exception. With the low cost of living, booming economy, and thriving housing market, it’s no surprise that many real estate investors are now choosing Texas to call home. Here are four reasons why Texas is a current hot-spot for real estate investors.
Lenient State Regulation Over New Developments
In California, there are many regulations when it comes to the construction of New Developments. The regulations make it very difficult for new developments to be built. Texas, however, has much more lenient regulations and new developments are sprouting up constantly all over the state.
New CA Bill Threatens Investment Opportunities
A bill was recently passed in California that greatly impacts real estate investors in the state. The bill states that real estate investors would no longer have equal opportunities to bid on foreclosures, the state would have first dibs.
Surge in homeless population
California currently ranks fourth highest in the country in terms of income inequality, and second in fastest growing income inequality. Comparatively, Texas ranks number 39th in the nation in terms of income inequality. About one in every five Californians live below the poverty line. As unfortunate as it is, this surge in homelessness and growing income inequality heavily impacts the real estate investors market. Texas, specifically Houston, is currently experiencing extremely low inventory for homes, making it a seller’s market. This is the ideal climate for real estate investors to invest in new developments and communities.
Rising housing costs
Texas has an overall significantly lower cost of living than California does. The state minimum wage is also lower, as it’s $7.25/hr in Texas compared to $12.00/hr in California. Cheaper labor means more profit for the business, which is a large incentive to make the move to Texas. Texas has a great job market, low housing costs, and a growing economy.