On A Positive Note - 01/10/2022

While there is much to worry about these days such as the economy and inflation, homeownership in the state of Texas is a definite bright spot for many.

Property owners in Killeen have seen an average rent increase of 29.5% since March 2020 whereas most major cities in the nation averaged 20% according to a study by Apartmentlist.com.

Up to November this year, our property owners were enjoying near 100% occupancy levels. The holidays have brought about a slight seasonal slowing of the rental market, but demand continues to outpace supply and we anticipate continued high occupancy rates into the new year with some cooling of rental rate increases.

Investing in real estate continues to be an excellent hedge against inflation. People always need a place to live, which makes owning real estate a great commodity in which to invest. Although real estate values have been on the rise, mortgage interest rates continue to remain near historic lows, so purchasing now while financing is still cheap is a smart move. The cost of gas, groceries, lumber, and many other consumer goods are on the rise and are beyond our control as the dollar continues to lose value. The 29.5% increase in rental rates we’ve seen since March 2020 have blessed investors with excellent rates of return on their investment properties while their properties have been appreciating dramatically in value. According to a recent study by Black Night, homeowners in the U.S. have seen their home equity rise an average of 32% since the third quarter of 2020. In addition to increased rental income and growing equity, rental properties provide valuable tax deductions. 

On the economic front, the Texas Workforce Commission recently reported that Texas has recovered all jobs lost due to the pandemic after adding 75,100 nonfarm jobs in November, reaching nearly 13 million jobs.

Texas currently has the cheapest average gas prices in the nation according to AAA. The average price per gallon in Killeen is $2.88.

A recent study by WalletHub lists Texas as the best state to start a business.

Fun fact – While Texas is among only seven states with no state income tax, did you know that the Texas Constitution was amended in 2019 to forbid personal income tax? 

“Happiness depends upon ourselves.”  --Aristotle

David Gerke,
Broker / REALTOR®