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Why do investors find Texas so attractive?

Texas is Built for Business
Texas is an attractive place for real estate investors. It works hard to stay “business friendly,” and the state’s economic environment supports businesses as they compete in the global economy.

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1. Texas is leading the United States in the current economic recovery
   The Texas economy suffered less in terms of lost jobs and outputs in the Great Recession than the nation as a whole
   (see Figure 1 in the attachment).
2. Texas’ economy is big and growing
   With a gross domestic product (GDP) of more than $1.2 trillion, Texas’ economy was the 14 th largest in the world in 2010 (Table 2). It was the second largest economy in the nation in 2010, larger than New York’s (Table 3).
3. Texas’ economy is profitable
   In 2009, gross operating surplus in Texas accounted for 40 percent of the state’s private sector GDP compared with a national average of 37.5 percent (Table 7). This means Texas businesses are more profitable.
4. Texas has a growing population
   A growing population, particularly if well educated and sporting an entrepreneurial spirit, is an important part of the economic infrastructure. On the demand side, a growing population boosts the need for goods and services, especially housing units, which in turn leads to more economic growth and higher profitability. The share of U.S. population living in Texas has increased from 7.4 percent in 2000 to 8.1 percent in 2009 (Table 8)
5. Texas’ economy is an international economy
   Texas is an important player in the nation’s international trade. Total exports via Texas in 2009 were nearly $163 billion, accounting for 15.4 percent of U.S. exports (Table 9).
6. The tax burden is less in Texas
   In 2009, state and local taxes paid by Texans accounted for 7.9 percent of the state’s per capita income, compared with 9.8 percent for the nation (Table 10).
7. Texas has an affordable housing sector
   The average price of an owner-occupied housing unit in Texas in 2009 was $125,800, about 68 percent of the national average (Table 11).
8. Texans have entrepreneurial spirit
   According to the Kauffman Index of Entrepreneurial Activity, Texas ranked tenth in entrepreneurial activity (400 per 100,000 adults) in 2010 compared with 340 for the nation.
9. Texans are mobile.
   In 2009, about 17.4 percent of Texans one year and older lived in a different house one year ago compared with 14.9 percent for the nation (Table 13).