LANDLORD NEWSLETTER
APRIL 2024
A Letter from our Owner
– Shirley Johnson
You may know, 3G stands for 3 Generations. I grew up in a family that strongly believed
in the value of investing in real estate for long term wealth. I have continued investing
as well as my children do in real estate.
All politics aside, the current uncertainty of the stock market suggests, in my opinion,
the value of diversifying your investments into real estate as well. We are seeing
mortgage rates coming down and real estate pricing becoming more stable. We are not
seeing the conditions we were in from 2009 through most of 2023 of ever increasing
pricing and crazy multiple offers.
In my opinion, this is pointing toward the direction of real estate investing becoming
much more attractive. Please let us know if you are interested in adding to your
portfolio. We can assist your efforts to find best areas to invest in.
Property Tax Protest Services
It’s already coming up on that time of year when we get
notification of our property tax. The past few years has shown that
we cannot expect a reduction, and we will most likely see an
increase. It is always wise to seek professional help when
protesting your property tax and 3G Properties Group has used
Property Tax Services and they are highly experienced in
helping property owners reduce their tax burden and providing
that your property is assessed fairly.
Another benefit is that they charge a “success-based fee”. The
fee is contingency based at 50% of the savings.
Don’t delay as most counties deadline to protest is around May
15th so you must call and speak to them about your individual
needs.
Texas Property Tax Consultants, Inc.
Property Tax Protest Services
972.304.0909
info@TexasPTC.com
Texas is the Fastest-Growing State in the U.S. and Now the Race is on to Build More Homes
They say that everything is bigger in Texas, but there’s an important exception that’s key
to improving housing affordability in the state: new homes.
Faced with a population explosion driven by newcomers, the Texas housing market has
grappled to keep pace with demand in recent years, with homebuilders racing to fill the
void.
Last year, Texas was the No. 1 state for permitted housing units, accounting for 15% of
the national total, well above the state’s 9% share of the U.S. population.
Perhaps more importantly, those homes are growing smaller and more affordable, with
the median square footage of new homes in Texas down 5.3% last year from 2020, a
sharper decline than the 3.6% reduction seen nationwide.
Consequently, in the past two years, the share of new builds on the Texas market priced
below $350,000 has increased, while the shares of new builds priced from $350,000 to
$750,000 and from $750,000 to $2 million have both fallen.
That’s according to the Realtor.com® economic research team’s new report on the
Texas real estate market, released on Thursday in conjunction with the announcement
that Realtor.com is relocating its headquarters from California to Austin, TX.
The headquarters move follows a rapid influx of businesses and new residents moving
to Texas in recent years, many of them also arriving from California in search of more
affordable housing, a strong labor market, and relief from wildfires that are growing
more frequent and deadly.
Rapid growth has created many opportunities for the Texas economy to thrive, but it has
also presented challenges for the state’s housing market.
“The state has grown rapidly in the last several years as people from across the country
and across the world have seen what Texas has to offer,” says Realtor.com Chief
Economist Danielle Hale.
“Already-scarce housing inventory from years of under-building was flooded with cash
offers, and listing prices and rents soared,” she adds. “Texas has responded by building
more and smaller homes to meet demand, helping the market settle and housing
inventory climb back to pre-pandemic levels ahead of the nationwide recovery.”
What’s behind Texas’ Population Poom
Over the past decade, Texas has added more residents to its population base than any
other state, growing by nearly 4 million residents from 2013 to 2023.
Right now, Texas is second, only to California, as the most populous state with an
estimated population of just under 31 million in 2024. California’s population lead is
sizable, with nearly 27% more residents than Texas in 2024.
But, population projections suggest the Texas’ growth trend will continue, propelling it to
become the largest state by population in 2045, when it could surpass California with a
population of 42 million.
Realtor.com’s economists noted that the shift in ranking in 2045 is due to a combination
of population growth in Texas as well as a population loss projected in California.
In 2019, roughly 1 in 5 Texas home shoppers on Realtor.com was from out of state. This
share picked up drastically during the pandemic, and by April 2023, roughly 1 in 3
viewers of Texas properties was from out of state.
Out-of-state viewership has since fallen, but it remained above pre-pandemic levels at
30%—more than 1 in 4 home shoppers—in 2024.
The two largest sources of immigration to Texas are international migration
and relocation from California, U.S. Census Bureau data shows.
A Realtor.com analysis of the census survey data shows that Californians are most
likely to say they chose to move to Texas for housing, climate, and job-related reasons.
The analysis shows that people who move from California to Texas are 56% more likely
to move for cheaper housing than the typical person who moved out of state.
The second-highest odds-ratio of California to Texas movers was for a change of
climate (37%), followed by a new job or job transfer (36%), a desire to own a home and
not rent (31%), and a job loss or a job search (10%).
While it’s unclear exactly what climate reasons the survey respondents had in mind, at
least some of these climate-related moves from California are likely spurred by the
devastating wildfires that caused tens of billions of dollars in damages in recent years.
The recent wildfires in Los Angeles County last month are a reminder that these risks
have not diminished.
Despite challenges, the Texas housing market is more
affordable than the U.S. overall
Despite rapid increases during the pandemic, the median-priced home in Texas has
remained less than the national median from 2018 through the latest data period.
After climbing rapidly during the COVID-19 pandemic and peaking in June 2022, home
prices in Texas have settled slightly as easing demand and increased inventory relieved
some of the upward price pressure.
As of December 2024, the median list price in Texas was $360,000, roughly $40,000
below the national median.
Meanwhile, the state’s median household income lags the national level by less than
$5,000.
On a price-per-square-foot basis, homes in Texas have only increased in their
affordability relative to the national median each year since 2016.
In 2024, the typical Texas home was listed for 17.6% lower per square foot than the
typical home nationally.
Although home prices have fallen recently in Texas, the median list price per square foot
has only eased slightly, suggesting more homes with smaller floor plans are for sale in
the state, helping to pull down the overall median.
Texas is building more affordable homes, but could still use more
Texas has been a national leader in building more affordable homes in recent years, but
there is still more work to be done.
Since the pandemic, the share of new homes for sale priced below $350,000 has
climbed, bolstered by strong construction activity.
Although Texas offers considerable inventory in lower price tiers, the price distribution of
for-sale homes does not match well with the state’s income distribution, according to the
new Realtor.com report.
Roughly 23% of Texans make less than $35,000 per year, but only about 2% of for-sale
homes are affordable at this income level.
Similarly, 51% of Texans make less than $75,000 per year, but just 17% of for-sale
inventory is affordable at this income level.
Even for 80th percentile earners, making up to $150,000 per year, just 66% of for-sale
inventory is affordable.
Those figures highlight the need for an even greater push to build more lower-priced
housing options. As well, falling mortgage rates could help unlock more affordable
inventory availability for low- and middle-income Texans.
Realtor.com’s economists also note that Texas must lead not only in the quantity of
homes built, but also in the resilience of the homes against flood, wind, and heat risks
that are a factor for trillions of dollars of Texas homes.
Realtor.com article posted on February 6, 2025
May 11th 2025
What Mother Means
By Karl Fuchs
Mother is such a simple word,
But to me there's meaning seldom heard.
For everything I am today,
My mother's love showed me the way.
5 Best Father's Day Dinner Recipes
1. St. Louis Ribs: Click Here for Recipe.
2. Juicy Lucy Burgers: Click Here for Recipe.
3. Garlic Butter Steak Potatoes: Click Here for Recipe.
4. Grilled Lobster Tails with Garlic Butter: Click Here for Recipe.
5. Extra-Cheesy White Lasagna: Click HERE for recipe.
Notes from a few of our residents and other landlords!
10/10!! This company was recommended to us from our realtor. We could not be more pleased. Dealing with Angela and everyone else on the team has been a great experience. Very professional and easy to work with. Highly recommend! ~Chad
We’ve had a wonderful experience with 3G managing our property. We look forward to adding more properties for them to manage!
~CR
