Every day, about 1,000 people are added to the Texas population. Of that number, many are born within our borders, but a significant percentage encompasses those who chose to relocate here purposefully. Most are seeking better opportunities for employment, education, or enrichment of their lives. Others are retiring to areas with favorable amenities and relatively low cost of living.
From 2000 to 2008, the population of Texas increased some 16.7%. Although this growth rate is only the fourth highest among the fastest-growing states, the addition of nearly 3.5 million individuals gives Texas the largest numerical gain among the nation’s states over that timeframe. In fact, it is remarkable that a state as large as Texas would rank so high on a percentage basis.
Naturally, some people leave Texas every year, but lately (according to a recent report by Relocation.com, an online consumer resource) the percentage moving into the state has been approximately 61% higher than those departing. In addition, the group, which studied moving patterns from 2007 through the first quarter of this year, noted that Texas was among the top four destination states.
Relocation.com also named four Texas metros among the 20 best cities in the US for a “fresh start.” Austin and Dallas-Fort Worth captured the first and second spots in that category, respectively, with Houston ranked 10th and San Antonio 15th. In fact, with the exception of El Paso, all major cities in the state had more people moving in than leaving over that 27-month period.
Historically, people sought out new beginnings in Texas because of the state’s abundant land and natural resources. More recently, however, individuals and businesses have been attracted to Texas because of its relatively strong economy and favorable business climate. The recession significantly encouraged migration to the state over the past two years as people looked for chances to improve their standard of living in Texas, which was not hit as hard economically as many other areas across the country.
The population increases, while changing the face of Texas, are also presenting numerous challenges and opportunities. With Texas attracting so many new people, the need for housing will likely expand, a positive predictor for the real estate industry. Population growth is, of course, the primary determinant of housing demand, and we have not been building enough to keep up with recent gains; in other words, we are now working into the surplus.
The inflow of new residents will serve the state well in the future. While the recent recession and job losses have freed up many talented potential workers, the long-term trend is toward workforce constraints. As the large baby boom generation begins to retire, many areas will be facing a shortage of qualified employees. This pattern, in turn, will lead some companies to look to other areas as they expand or relocate. The current wave of new Texans can help the state maintain an advantage in this area.
Texas is also working on other fronts to ensure ongoing workforce quality. Some $90 million has been provided by the Texas Legislature to assist incumbent workers, as well as those seeking employment, to acquire vital workplace skills. Since the inception of the Skills Development Fund in 1996, nearly 76,200 jobs have been created and the abilities of more than 208,600 workers have been upgraded. To avoid skilled worker shortages in the future, businesses must continue to create and enhance quality training programs directed toward the industry needs anticipated for tomorrow.
Forecasts call for continued population growth across Texas for the foreseeable future. This increase brings many benefits, but also issues in terms of providing the necessary infrastructure, educational opportunities, health care, and public safety to support an expanded citizenry. The way we handle the new challenges and opportunities wrought by these circumstances may well determine the state’s future economic vitality.
My obsession with baseball compels me to repeat the words of “The Voice” in the movie Field of Dreams – “If you build it, they will come.” In Texas, we have built the right environment for businesses to flourish, with a healthy business climate and powerful economic development tools. The companies have come and with them the people seeking their fortunes. We have built it, and here they come. Now, we have to build the other things they need to prosper.