Texas’ economic outlook optimistic but problems may lurk

TEMPLE – Mark Dotzour, chief economist and director of research for the Real Estate Center at Texas A&M University, told community business leaders he is optimistic about the future, but also pointed to potential problem spots during the CentraLand Title Company’s 2014 Economic Summit.

One problem with limited growth is that regulators have made it difficult for banks to loan money for new subdivisions because they lost a lot of money six or seven years ago, Dotzour noted.

Dotzour pointed out that what makes Texas attractive to businesses is that families can come to Texas and make a decent living without a huge wage they’d need in some other places. If the price of homes starts to skyrocket, then that’s gone away.

Average house prices in Texas were $169,900 five years ago, $197,500 in 2013 and haven’t dipped below $200,000 since October — what Dotzour believes is a serious issue.

Dotzour also noted that Americans are back in the saddle again, citing that the net worth of Americans is at an all-time record high at $81 trillion. “The good news you never hear about is there are 4.1 million jobs open today. We have a labor shortage," Dotzour said.