Texas – now a green state

Posted on Jun 18, 2009 in economy, employment | 4 Comments

An article in the Sacramento Bee has an illustration of when US metro job markets are expected to recover to their pre-recession employment levels.

From the looks of it, Texas is faring the best. We’re expected to get back to normal by the end of 2009 or within 2010. Edited to add: I specifically looked at the Austin – Round Rock area and they’re predicting a return to our April 2008 unemployment rate of 3.5% in the 2010 third business quarter. I’m no business major, but I think that means June of 2010, right?

To all the Austinites who are still unemployed – hang in there, because there’s a light at the end of the tunnel. And remember that population growth = economic vibrancy.

4 Comments

  1. aimee
    June 18, 2009

    i heart texas (especially austin)!!!

    miss it – even with the heat! already looking forward to being back… see you in a few months!

  2. Tall Drink of Texas
    June 22, 2009

    I hate to say this, but Texas appears to be fairing best partly because of its tax revenue set-up. Appraisal values are being artificially inflated compared to the matching market value to keep tax revenues up. Granted, unemployment is the most important factor, but a lot of people are starting to catch onto the fact that their property values are not reality. Just ask your friends who have sold their homes recently how far under “appraisal value” they sold for. Like the mortgage debacle before it, this will have severe long-term implications for Texas – one of the few states without an income tax that relies on property taxes for revenue.

  3. Move To Austin
    June 23, 2009

    All in all, our state tax burden is on the low end of the spectrum compared to other states. Numbers from last year show that we’re taxed about 8.4% of our income, compared to a US average of 9.7%. Only 7 states have a lower average.

    While I don’t agree with the way that our property tax system is set up (we’re taxed on unrealized gain, year after year), I think that in the end it’s a wash – I’d be paying that as an income tax anywhere else.

    For the record, May real estate numbers are out, and houses are selling at 95% of their listing price, compared to 96% for last year. The average price of a house is down 3.5% from last year.

  4. Tall Drink of Texas
    June 23, 2009

    Well said. I also read a report where people are trying to avoid reporting their low buying price in order to keep property values up. Don’t get me wrong, I am NOT an advocate of the income tax, and I totally agree that it’s a wash in the end. The point is this – the property tax system, like the income tax system, is set up for failure because it encourages fraud. We should be taxing consumption, not income. That way, in bad economic times, the govt would be forced to contract along with the private sector. Just my free market opinion though…