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RECON for July 20, 2021RECON for July 20, 20212021-07-20T05:00:00Z2021-07-20T05:00:00Z
Ice Dams, Snow on Roof, Icicles Causing Winter House Damage
Winter Storm Uri left those without homeowner's insurance vulnerable to the storm's disastrous effects. A Texas Real Estate Research Center study shows households that are low-income, in nonmetropolitan areas, or without a mortgage are less likely to have homeowner's insurance. Read more in today's RECON. (Photo from Center files.)
July 20, 2021

Winter blast reveals many Texas households lack homeowner’s insurance

COLLEGE STATION (Texas Real Estate Research Center) – Winter Storm Uri was a harsh reminder of the importance of homeowner's insurance. A study by the Texas Real Estate Research Center at Texas A&M University shows households that are low-income, in nonmetropolitan areas, or without a mortgage are less likely to have homeowner's insurance.

Researchers used U.S. Census Bureau data to estimate the number of uninsured Texas households. Approximately 26.6 percent of nonmetro homeowners reported as uninsured. Eleven percent of households in metropolitan areas with a principal city such as Austin, Dallas-Fort Worth, Houston, and San Antonio are uninsured. In metropolitan areas without a principal city, 10.2 percent do not have homeowner's insurance.

"Metropolitan areas in the Rio Grande Valley and along the Texas coast have the highest percentages of uninsured households," said Joshua Roberson, senior data analyst. "In McAllen, almost two out of five households are uninsured. Brownville is close behind with 34.9 percent.

"Despite being vulnerable to hurricane damages, one out of five homeowner households in Beaumont and Corpus Christi is uninsured."

"Mortgage status plays an important role in determining the likelihood of having property insurance because mortgage contracts require a homeowner's insurance policy," said Research Economist Luis Torres. "The mortgage lender has a financial interest in the home, which is motive for requiring insurance.

"Only 4.1 percent of homeowner households with a mortgage are uninsured. This is in contrast to 26 percent for those who own their home free of debt."

The study notes the relationship between having lower average income and being uninsured. Those who own their home free and clear of debt and are uninsured have incomes around $53,274 compared with $95,873 for those who own their home and are insured.

The smallest percentages of uninsured households can be found in Austin and Dallas-Fort Worth at 6.1 and 7.4 percent, respectively.

"Homeowners who don't have a mortgage are generally characterized as seniors living in older homes, which are more susceptible to damage from extreme weather conditions," said Torres.

"When one considers the link between household income levels and being uninsured, this raises important questions. Is homeowner's insurance too expensive for households earning a lower income? Is the cost impeding them from protecting their homes from natural disasters?

"Identifying the location and characteristics of uninsured homeowners would enable the state to better allocate resources for home repairs following a natural disaster such as a freeze."

For more, read "Storm Warning: Winter Blast a Harsh Reminder of Need for Homeowner's Insurance" online​ or in the summer issue of TG magazine.
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Texas adds 55,800 jobs in June

AUSTIN (Texas Workforce Commission) – The state's seasonally adjusted unemployment rate inched down 0.1 percentage points to 6.5 percent in June, according to the Texas Workforce Commission. 

Texas added 55,800 nona​​gricultural jobs last month, marking gains in 13 of the last 14 months. The state added 654,200 jobs since June 2020.

With the job gains, the Texas economy needs to add almost 345,700 jobs to return to pre-pandemic levels.

Hiring ramped up despite worker shortages. Statewide job openings reached record highs in March at 712,000, with a job openings​ rate of 5.4 percent. 

​​Based on Texas Real Estate Research Center projections, Texas job openings could have risen further in May to 751,000. 

"Record job openings suggest that while the economy is still short of pre-COVID employment levels, it is not due to insufficient labor demand," said Dr. Luis Torres, research economist with the Center. "In addition to childcare, other factors affecting the transition from unemployment to employment could be the lingering pandemic, early retirement, and the possibility that people are rethinking their career paths."

Amarillo had the lowest nonse​asonally adjusted unemployment rate in the state​ at 4.5 percent. McAllen-Edinburg-Mission had the highest at 10.8 percent. 

All employment sectors had seasonally adjusted job gains since June 2020 except for construction, which remained unchanged. The leisure and hospitality sector's employment jumped 16.7 percent over the year and gained 19,000 jobs since May 2021.  ​

"The effects of expanded vaccination rates were perhaps most notable in leisure, travel, and restaurant consumer spending, improving the sector's prospects in achieving a full job recovery," said Torres.​
Texas A&M's AgriLife Extension Service is offering the Owning Your Piece of Texas: Key Laws Texas Landowners Need to Know course online. The program offers practical tips and insightful examples, to help explain legal concepts important for landowners. This self-paced course will take approximately 8.5 hours to complete. Participants can take the whole course for a total $150, or pay $20 for individual, shorter courses.

Texas 2021's best state to start a business

​​​​​WASHINGTON (WalletHub) – According to a WalletHub study, Texas is the best state to start a business in 2021. 

The Lone Star State ranked second in business environment, 12th in access to resources, and 32nd in business costs. 

It was also fourth in longest average work week and fifth in highest total spending on incentives as a percentage of gross domestic product.​​​

Georgia, California, Florida, and Idaho rounded out the top five. ​​
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

Shea Homes plans second Conroe community

CONROE (Total PR) – Shea Homes has started on the initial design of a 740-acre community called Evergreen.

The project will include over 2,000 homes and 100 acres of parks, greenspace, and amenities.​

The land at FM 242 and FM 131​4 was purchased in 2020 from Cooper Rose LLC. ​

Elevation Land Solutions is overseeing the engineering. TBG Partners is the landscape architect.
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42-story mixed-use project in the works for downtown Dallas

DALLAS (Dallas Morning News) – 42 Real Estate is planning a 42-story high-rise project on downtown's east side.

The two-building complex will have 200,000 sf of offices, 250 hotel rooms, 224 apartments, and ground-floo​r retail space. It was designed by The Beck Group.

Two small buildings and surface parking currently occupy the site at Elm​ and N. Pearl Streets near I-345.​
Communication Matters video seriesThe Texas Real Estate Research Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

Multifamily coming to former site of Regal Fiesta movie theater

​​​​​SAN ANTONIO (PR Boutique) – Locally based Koontz Corp. is building a 300-unit Class A multifamily community on the site of the former Regal Fiesta 16 movie theater. 

​Tentatively called Fiesta Trails Apartment Community, the four-story, 267,000-sf project will be on 10.36 acres at 12631 Vance Jackson Rd. 

It will have one- and two-bedroom units and amenities such as two swimming pools and a dog park. ​​

Work starts in early 2022.
Helping Texans make the best real estate decisions since 1971

Waco industrial building trades hands

WACO (REBusiness Online) – Gato Montez has purchased a 138,307-sf industrial building from Mani​tou Equipment America. 

The locally based buyer will occupy the building, which is within Waco Industrial Park.

Coldwell Banker Commercial ​brokered the deal.​​
Looking for reliable rural land data for Mississippi, Louisiana, Alabama, and Texas? We've got you covered. Get the data exclusively from the Texas Real Estate Research Center.
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Copyright © 2021, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Texas Real Estate Research Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Texas Real Estate Research Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

https://www.recenter.tamu.edu/news/recon/?Item=488

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