Investment Opportunity in Texas.  Market analysis. 

 

Despite slowing demand and the continued strength of new construction, rental markets in the US remain extremely tight. Vacancy rates are at decades-long lows, pushing up rents far faster than incomes. Both the number and share of cost-burdened renters are again on the rise, especially among middle-income households. These conditions reflect fundamental market changes since the recession, including an influx of higher-income households, constraints on new supply, and substantial losses of low-cost rentals.

 

According to a Harvard University Joint Center for Housing Studies analysis released late January 2020, by 2018, nearly half of Texas households that rent were considered moderately or severely cost-burdened by 2018. Moderately cost-burdened means people spend between 30% and 50% of their household income on rent. And severely cost-burdened means they spend more than 50%.

 

Meanwhile, the number of renter households in Texas is growing at twice the rate of owner households, according to census data. Airgood-Obrycki said this can have long-term effects on families’ wealth.

 

After a strong 12-year uptrend, the number of renter households fell in both 2017 and 2018. Growth resumed again in the first three quarters of 2019, but only at a modest annual rate of 350,000 households—far short of the 846,000 annual increases averaged during the rental boom in 2004–2016. This moderation reflects the leveling off of the national rentership rate over the past year, when renter household growth matched the pace of overall household growth. At 35.6 percent, the US rentership rate in the third quarter was unchanged from a year earlier and nearly in line with the rate in 1994 before the homeownership boom began

 

Measured from its peak in 2016, the national rentership rate was down a full percentage point in the third quarter of 2019. Households under age 35 accounted for the largest pull-back, with a 1.9 percentage point drop in rentership rates over this period. The rate for renter households aged 35–44 fell slightly less, by 1.4 percentage points, while the rate for renter households aged 45–54 was down 0.6 percentage point. 

 

Despite these declines, rentership rates for all age groups under 65 are still historically high. Indeed, the largest increases are among middle-aged households, with the rate for the 35–44 year old group up 4.5 percentage points from the 1994 peak, that for the 45–54 year old group up 5.3 percentage points, and that for the 55–64 year-old group up 4.2 percentage points. The difference in rentership rates for households under age 35, however, was just 0.9 percentage point. Only households age 65 and over had a lower rentership rate in 2019 than in 1994, down by 1.1 percentage point. Although rentership rates today are generally higher than 25 years ago, the national rate is close to its 1994 level because such a large share of households is in the older age groups when homeownership rates tend to increase. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Source: Harvard University Joint Center for Housing Studies analysis 2020. The Texas Tribune, Juan Pablo Garnham Business Journal Staff Writer.)

 

 

Market Research

 

The company will continue to increase its property portfolio in Beaumont, Texas. 

 

In 2017, Beaumont, TX had a population of 118k people with a median age of 34.3 and a median household income of $45,268. Between 2016 and 2017 the population of Beaumont, TX grew from 117,729 to 118,424, a 0.59% increase and its median household income grew from $42,395 to $45,268, a 6.78% increase.

The 5 largest ethnic groups in Beaumont, TX are Black or African American (Non-Hispanic) (47.8%), White (Non-Hispanic) (33%), White (Hispanic) (12.1%), Asian (Non-Hispanic) (3.18%), and Some Other Race (Hispanic) (1.79%). N/A% of the people in Beaumont, TX speak a non-English language, and 92.8% are U.S. citizens.

The largest universities in Beaumont, TX are Lamar University (4,858 degrees awarded in 2017), Lamar Institute of Technology (746 degrees), and Brightwood College-Beaumont (100 degrees).

The median property value in Beaumont, TX is $99,800, and the homeownership rate is 56.3%. Most people in Beaumont, TX commute by Drove Alone, and the average commute time is 18.2 minutes. The average car ownership in Beaumont, TX is 2 cars per household.

Households in Beaumont, TX have a median annual income of $45,268, which is less than the median annual income of $61,937 across the entire United States. This is in comparison to a median income of $42,395 in 2016, which represents a 6.78% annual growth.

The following chart shows how the median household income in Beaumont, TX compares to that of its neighbouring and parent geographies.

 

 

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Income by location

On average, the place with the highest Median Household Income (Total) in Beaumont, TX was Census Tract 3.02 with a value of $88,349, followed by Census Tract 13.03 and Census Tract 3.06, with respective values of $80,764 and $74,983.

The following map shows all of the places in Beaumont, TX colored by their Median Household Income (Total).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Source: https://datausa.io/profile/geo/beaumont-tx#economy)

 

Employment by Occupations

From 2016 to 2017, employment in Beaumont, TX grew at a rate of 1.82%, from 51.6k employees to 52.5k employees.

The most common job groups, by number of people living in Beaumont, TX, are Office & Administrative Support Occupations (6,315 people), Sales & Related Occupations (6,148 people), and Construction & Extraction Occupations (4,357 people). This chart illustrates the share breakdown of the primary jobs held by residents of Beaumont, TX.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Source: https://datausa.io/profile/geo/beaumont-tx#economy)

 

Employment by Industries

From 2016 to 2017, employment in Beaumont, TX grew at a rate of 1.82%, from 51.6k employees to 52.5k employees.

The most common employment sectors for those who live in Beaumont, TX, are Health Care & Social Assistance (7,710 people), Retail Trade (6,571 people), and Educational Services (5,195 people). This chart shows the share breakdown of the primary industries for residents of Beaumont, TX, though some of these residents may live in Beaumont, TX and work somewhere else. Census data is tagged to a residential address, not a work address.

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(Source: https://datausa.io/profile/geo/beaumont-tx#economy)