Dec 29, 2015
From Calif. to Texas … reason behind Toyota’s HQ move and it’s not BBQ
DALLAS-FORT WORTH – What tops the list of reasons Toyota decided to plant its North American headquarters in Plano, bringing in more than 3,000 jobs, mostly from California?Housing costs played...
DALLAS-FORT WORTH – What tops the list of reasons Toyota decided to plant its North American headquarters in Plano, bringing in more than 3,000 jobs, mostly from California?
Housing costs played a surprisingly big role in the decision to move Toyota’s headquarters, Albert Niemi Jr. the dean of SMU’s Cox School of Business says.
Toyota did the math and found that housing costs in Torrance, Los Angeles County, where Toyota headquarters currently is located, are three times more per sf than the cost of a house in DFW.
“They’re paying the same salary,” Niemi said. “So in real terms, they’re going to triple the affordability of housing they can buy if they move to Texas.”
In North Texas, median home prices are three to four times the median income, said Chuck Dannis, real estate adjunct professor at SMU and senior managing director of National Valuation Consultants. In Torrance, Calif., homes cost about seven times the median income.
The median home in Dallas-Fort Worth costs about $210,000, and the median income is roughly $58,000, Dannis said.
In Torrance the median home price is $508,000 and the median income is $76,000.
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