Texas Economy Shows Resilience
published on July 25, 2023
Despite economic headwinds, the Texas economy is showing resilience, according to the most recent “Outlook for the Texas Economy” by the Texas Real Estate Research Center. The labor market was a continued “bright spot,” as employment continued to grow.
According to the report, “Texas consumers reportedly were 2.6 percent more confident about the economy than the average U.S consumer, due in large part to Texas’ strong employment growth rate.”
Nonfarm employment expanded four percent year over year, while the major metros experienced strong payroll growth. The labor force participation rate increased for the fifth straight month, to 64.2 percent, while the unemployment rate was 4.1 percent.
“Over the course of a year, Texas attracted 338,000 new workers, resulting in a total labor pool of more than 15 million individuals — a historical high for the labor market,” it stated.
In the housing market, average time on the market decreased for the first time in 14 months, pulling back three days to 56 days. This signals the market is “becoming more competitive.” While days on the market significantly dropped in the last couple of years, the five-year average prior to 2020 was 59 days.
Home sales on the whole were up 5.3 percent, with Austin experiencing a double-digit growth rate and San Antonio, Houston, and Dallas all coming in with strong numbers.
On the economic downside, Texas exports were down 15 percent in a year, following a record 2022 for net trade. This was credited to “the subdued outlook in the global economy.”
Read the full report with graphics here.
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