While Texas personal income is growing at a slower rate than that for the nation, income from earnings is growing at the same rate as the U.S. average. Personal income trends combined with decreasing job loss rates suggest the worst of the economic downturn may be over.
Studying the relationship between Texas and U.S. employment growth rates over the past few decades allows Center economists to offer more informed predictions of regional economic trends. The recession that has hit the nation so hard has been less severe in Texas because of employment growth in the education and health services industries and the government sector.
Finding new uses for dozens of closed new car dealerships is proving difficult. The large parking lots may be an asset to churches, school districts and public event centers, but the properties may require environmental cleanup to be usable. Counties and cities are facing budget shortfalls caused by loss of sales and poperty taxes collected from the dealerships.
More than 400 of the most expensive luxury condos in Texas are coming online in downtown Austin. Some say the timing is disastrous; others believe economic recovery may work in favor of these developments. Upscale buyers hold the key to success for this small niche market.
(Klassen, Dotzour) 6pp.
Media headlines are proclaiming that the recovery has arrived, and now is the best time to "get back into the market." But this recovery will be different than those following past recessions because the downturn was caused by too much debt. The Fed took unprecedented actions to save the banking system in 2008, but it is too early to know if the seven dangers that lie ahead can be avoided.
The Federal Reserve is attempting to avoid a failure of the financial system by using four important tools to support real estate values. It is difficult to know how long they can succeed or if the plan will work at all because it has never been tried before. For investors seeking to purchase distressed real estate from the FDIC, three alternative programs have been designed to facilitate the auction of assets from failed banks.